Atlanta 2019 Q1 Office Market Report

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Leasing posts strongest first-quarter total in five years, deliveries keep availability stable

Overall availability in Atlanta remains essentially unchanged year-over-year, ending the quarter at 19.6% despite a significant uptick in leasing activity. More than 3.1 million square feet (msf) of space was leased in the first quarter, marking the strongest quarterly total since 2014. New construction has kept availability in check with 2.6 msf of new product delivered in 2018 and an additional 3.8 msf currently under construction. With stronger demand and a robust pipeline of high-quality space, asking rents for the CBD increased 9.9% over the year, now at $32.81 per square foot (psf). However, rent growth will likely top off this year, particularly as new construction is leased and some of the city’s older office product becomes available.