Atlanta's office sector has enjoyed a strong second quarter, from rent growth to tightening availability. However, conditions could shift more favorably to tenants by the end of the year.
Rent rates in the second quarter surged by 3.7 percent year-over-year to $33.81 per square foot.
"Midtown remains the city's most expensive and sought-after submarket, with rates climbing to $47.27 psf, further reinforcing its position as Atlanta's premier office destination," Savills wrote in its report.
That came as the availability rate dropped by 130 basis points to 27.9 percent. The performance was driven by leasing continuing to remain stable, with 1.9 million square feet of deals generated through the June quarter, although that amount was 700,000 square feet lower than in the same period 12 months ago. Also, the second quarter 2025 number is in line with the five-year three-month average.
"This consistency underscores the market's resilience despite broader economic uncertainty," Savills explained.
Boehringer Ingelheim and AT&T posted the largest leases in Atlanta's office sector, with their 73,900 square feet and 72,909 square feet deals, respectively. They were followed by The Quikrete Companies and TriNet Group, which signed for 69,084 square feet and 64,195 square feet in the Central Perimeter submarket.
While Savills noted that Atlanta's office sector is heading toward stabilization, it does expect the market to favor tenants by the end of the year. Rents have risen, but landlords are expected to continue offering "generous concession packages" to retain occupancy levels, Savills predicted.
"Flight-to-quality trends will remain a key driver of activity, with well-located, amenity-rich properties continuing to outperform, while dated assets face ongoing leasing challenges," the CRE firm further noted.
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