Atlanta Office Investment Forecast
Atlanta's Economic Recovery Points Toward Strong Performance Once Supply Overhang Is Absorbed
Office outlook brightens with time. The effects of the health crisis will take another year to work through the Atlanta office market as several large move-ins are offset by firms surrendering or reducing their footprints. For example, the largest lease signed during the second half of last year resulted in zero gain in occupied stock. Carvana is subleasing 570,000 square feet at Park Center's Building 1 from State Farm, which is moving to a hybrid model and no longer needs as much space. This trend is expected to continue through this year as office tenants absorb space available for sublease, which has increased 75 percent in the past two years. Another challenge facing the metro is the amount of speculative space underway. Approximately 65 percent of the office stock coming out of the ground did not have a leasing commitment as of late 2021. Despite the tenant churn anticipated in 2022, the long-term outlook remains positive as companies and professionals move to the market in above-average numbers.