Because the Atlanta metro region has a solid economic base, there is a lot of demand for commercial property in this part of Georgia.
There are also many newer buildings being built to meet this need.
Companies want to move where it’s cheaper and where fewer regulations are in effect.
Find current trends and potential business development ideas for commercial real estate (CRE) developers and owners in the Atlanta market.
Key Highlights in Atlanta Office Space
The Atlanta office market reports reflect the massive migrations and growth the city has experienced during COVID-19.
Vital statistics to consider include the following:
- Atlanta is regarded as one of the hottest commercial property markets in the United States.
- Wages in Atlanta grew by 7.7 percent last year, which was faster than the national average of 4.7 percent.
- Atlanta’s office real estate is still relatively cheap because a lot of vacant space is available.
As more people move into Atlanta, the city will be able to provide the necessary resources for continued positive development.
Office Space Rent Changes in Atlanta
Across the United States, the national office vacancy rate is 15.4 percent.
Currently, office vacancies in Atlanta are higher than this:
- Atlanta has seen a significant rise in asking rent prices, increasing by 4.37% year-over-year.
- The office occupancy rate in Atlanta is 17 percent.
- On average, the asking rent for an apartment in Atlanta is $30 per square foot. However, the average price of Class A office spaces is $32.32 per square foot.
Overall vacancies are projected to decline, and average asking rent prices are projected to rise.
Long View on Atlanta Office Space
With more companies choosing to expand their operations in Atlanta, there will be an increased need for commercial real estate in Atlanta.
As companies grow, they need more office space. So, there will be an increase in office space in Atlanta’s central business district.
High-tech companies are opening offices in Atlanta, increasing the demand for office space.
Short-Term View on Atlanta Office Space
There’s no doubt that Atlanta has become one of the hottest markets for commercial realty.
It is one of America’s fastest-rising metros. Furthermore, the living costs in Atlanta are comparatively lower than in other major cities such as NYC and SF.
The area will continue attracting new businesses.
Rest of 2022 Market Forecast
As long as the economic situation remains good, Atlanta’s rents will likely keep increasing.
As of this Atlanta office market report, there is expected to be an increase in the number of high-end retail spaces, and new office lease opportunities will become available.
The Atlanta real estate market will continue to grow.
The most important thing for an investor to ask themselves is how high rent prices can go before they start slowing down.
According to the information in this Atlanta Office Space Market Overview, potential buyers should anticipate seeing increases in rents and activity in commercial real estate as long as there aren’t any significant changes.
General Atlanta CRE Outlook
Atlanta has been experiencing a boom, given its sizeable economic base and proximity to other major cities.
The economy has been doing well recently. This means that there is plenty of investment potential.
Atlanta has a growing need for retail space, hotel rooms, and offices.
Many existing offices and retail centers are currently being converted into mixed-use developments.
Atlanta Investor Closing Remarks
Atlanta is an attractive location for real estate investors because a lot of office space is available. Many new businesses, people, and tourists will move into the area.
According to this Atlanta office space report, the office market is projected to continue growing through 2022.
Investors who want to establish a long-term plan should be prepared to do some of their research into the Atlanta real estate markets.
Investors must consider other factors influencing the market before investing their funds.
Construction will continue increasing because new building construction will be available to meet the growing demands for commercial real estate.
Over the next ten years, Atlanta is projected to increase.
This population increase and surge in economic development could impact future commercial real estate markets in Atlanta.