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Market Report

Atlanta Office Market Report

2Q 2024

Shift to Smaller Spaces Lifts Vacancy, but Rising Lease
Durations Aid Stabilization Down the Line

Leasing picks up, but vacancy remains elevated. The vacancy rate in Atlanta rose 50 basis points quarter-over-quarter during the first three months of the year, matching the largest increase from 2010-2019. While additional pressure on vacancy will continue through the rest of the year as construction picks up, some companies are still increasing their local office footprints. AT&T is expanding its hub in Atlanta, taking up two vacant buildings at Lenox Park Complex. Piedmont Healthcare also leased over 160,000 square feet in Midtown in the first half, upgrading from its Vinings location. Most other leases inked in the early months of the year reflect a growing preference among tenants for sub-30,000-square-foot spaces. While companies may be taking up smaller allotments, increasing the volume of available for-lease space on the market, firms are also willing to commit to longer lease terms, often reaching 10-plus years. 

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