With a quarterly revision showing a net total of only 12,000 square feet of office space absorbed in the first quarter, the 453,000 square feet of occupancy gain experienced in the second quarter is a welcomed improvement to Atlanta’s office market and shows the actual conditions taking place here.
Following a slow start to the year, Atlanta’s office absorption picked up in the second quarter with 453,000 square feet absorbed.
The net occupancy gain this quarter resulted in another decrease in Atlanta’s overall office vacancy rate. The current rate is only 30 basis points off of the level prior to the last economic downturn.
Office rents continue to show upwards movement, increasing a full percentage point from last quarter.
As expected, construction levels increased again this quarter. Four projects over 100,000 square feet broke ground during the second quarter.
Atlanta’s office market is poised for a solid second half of the year thanks to stronger leasing activity in the second quarter Absorption could top 2 million square feet by year’s end.
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