Marcus & Millichap, has published its Atlanta Office Market Report for 2Q 2024.

“Atlanta's office market is facing some challenges with elevated vacancy rates, but the long-term commitment of tenants and ongoing job growth offer promising signs for stabilization,” stated John Leonard, first vice president/regional manager.

Marcus & Millichap’s 2Q 2024 Atlanta Office Market Report provides investors with vital insight and analysis on the current state of the Atlanta office market sector including:

• Atlanta's office vacancy rate increased by 50 basis points quarter-over-quarter, reaching 20.5% in March, the highest in decades. However, key expansions, such as AT&T’s new leases and Piedmont Healthcare's upgrade to Midtown, reflect continued business interest.

• Diverging trends are evident across submarkets, with urban core areas like Buckhead, Downtown, and Midtown experiencing nearly 25% vacancy, while large suburban submarkets like Northeast and South Atlanta maintain sub-14% vacancy rates.

• Office inventory will grow by 0.7% in 2024, with Midtown receiving over half of the new space. Other areas like Downtown, North Fulton, and Northwest Atlanta will also see new developments.

• Despite the high vacancy, the average asking rent will stabilize at $26.70 per square foot in 2024, with landlords in high-vacancy areas offering concessions to attract tenants.

• Atlanta's employment is projected to grow by 1.3% in 2024, adding 40,000 jobs, tied for fifth-most among major U.S. markets, with significant hiring in office-using sectors contributing to market stability.

“The ongoing investment and job creation in Atlanta’s office sector signal strong economic fundamentals and a resilient market poised for long-term growth,” added Leonard.