The Atlanta office market finished the year on a positive note. The Atlanta economy continued to expand through the fourth quarter of 2018 and gained 59,800 jobs, up 2.2% year-over-year (YOY) compared to 1.1% nationwide. Atlanta’s unemployment rate fell below the national average in 2018, dropping from 4.3% in the fourth quarter of 2017 to 3.4% in the fourth quarter of 2018. The national unemployment rate was 3.7% as of preliminary fourth-quarter data.
In the fourth quarter of 2018, overall office vacancy declined to 16.2% and is down 0.3% YOY. Vacancy continued to plunge in the CBD – Buckhead, Midtown and Downtown – reaching 14.2%, down 2.0% YOY. Meanwhile overall leasing activity shows no signs of slowing. CBD leasing activity in the fourth quarter of 2018 surpassed 1.0 msf for the first time since 2010 (1.1 msf) and only the sixth quarter on record. The CBD has almost 1.6 msf of office under construction, 48.4% of which is pre-leased.
For more, check out our five fast facts for the Atlanta office market below.