The national economy continues to show strength in 2019, and Atlanta has been a leading market in terms of job, GDP and population growth. While office densification has led to companies leasing less square footage per employee during the current economic expansion, relocations along with strong organic job growth have combined with restrained construction activity to keep vacancy rates below long-term averages and have helped drive strong rent growth.
Atlanta’s office construction is hitting its stride with 30% preleased and strong leasing momentum. There is 4.1 msf of office space currently under construction, but only 25% of that is scheduled to come online in 2019. Vacancy rates are below historical averages, but will likely creep up slightly over the next few years with additional product hitting the market. Continued job and population growth in Atlanta should lead to sustained rent growth, but perhaps at a lower level than was experienced in 2018. Below are Five Fast Facts about Atlanta’s office market.