Demand for top-tier space keeps availability stable, despite a robust development pipeline
Even with 6.2 million square feet (msf) of new construction in the development pipeline, availability has held somewhat stable across the Atlanta office market over the first half of the year. Overall availability declined 50 basis points year over year to end Q2 at 19.0%. Meanwhile, Class A availability saw a slight increase with the influx of new product, rising just 20 basis points over the same period to 20.5%. Demand for top-tier office space is still prevalent across the Atlanta market, where high-profile tenants such as Google, Starbucks and WeWork are willing to pay a premium for newer, high-end locations. Overall average asking rents in Atlanta’s CBD increased 5.1% year over year to $33.23 per square foot (psf), while Class A CBD asking rents increased 3.6% over the same period to $34.88 psf.