While quarter-over-quarter Atlanta’s office market remained mostly unchanged, there are statistics that highlight the strong continued growth the market, particularly the CBD comprised of Buckhead, Midtown and Downtown, has experienced during the past several years. The CBD vacancy rate, for example, reached 15% in the second quarter, the lowest since the third quarter of 2001. Additionally, 2.28 million square feet of office space is under construction, 92.7% of which is located in the CBD.
Insatiable demand resulting from a strong economy (and the accompanying war for talent) coupled with limited vacancy has caused record rent growth, which will price many prospective tenants out of the CBD submarkets. This should lead to a recovery for suburban submarkets struggling to rebound from several large corporate relocations.