Atlanta Office Market Report
Metro Grapples with Silicon Valley Slowdown,
Impacting Amenity-Rich Assets and Urban Core
Tech downsizing to temper office sector performance. Negative net absorption has continued into 2023, translating to record office availability across the Greater Atlanta region entering April. Headwinds in Silicon Valley are likely to exacerbate these conditions, as the tech industry has accounted for a large number of office signings in recent years. This trend is exemplified by Microsoft pausing development on a 90-acre parcel acquired in 2021, originally intended as a mixed-use campus for 15,000 employees. Macroeconomic challenges have also driven tenants in other sectors to downsize. In April, Carvana closed a regional office, exiting a 570,000-square-foot sublease at State Farm’s Park Center Campus in response to declining car sales. Despite these short-term pains, the market’s deep labor pool and friendly business environment will encourage companies to maintain operations close to the metro’s residential zones.