Demand for office space remains lower amid looming economic uncertainty

Due in large part to greater economic uncertainty, office space demand has continued to soften in the Atlanta office market. Despite a slight increase in leasing activity from last quarter, leasing activity in Q2 2023 totaled 1.6 million square feet (msf), a decrease from 2.2 msf in Q2 2022. Although the region has seen strong underlying employment fundamentals, occupiers have shown signs of indecision in an environment laden with rising interest rates, banking volatility, and increasing use of hybrid workplace strategies. Although leasing has declined over the past year, Atlanta has maintained a position more favorable than other similarly sized markets due to factors such as its relatively low cost of living, broad foundational industry base, and a richly diverse demographic makeup.

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