May 5, 2022 - Business

Metro Atlanta's office rents are... up

Illustration of a set of office chairs gradually moving up

Illustration: Sarah Grillo/Axios

Offices in metro Atlanta posted record rents in the first quarter of this year as companies flocked to newer buildings with fancy amenities, according to Cushman & Wakefield.

Why it matters: Sure, work from home has become popular and has changed the way we do our jobs — but companies still want a place where workers can collaborate.

Details: Metro Atlanta's average asking rate — the rents building owners offer to tenants — "climbed to $30.06 per square foot, eclipsing the $30-mark for the first time in market history," the company's Q1 report says.

  • Suburban submarkets were home to four of the five largest leases signed in the metro region. The Georgia 400 corridor claimed the two largest: American Honda Finance Corporation and Verint.

Yes, but: Midtown was the region's only submarket to show an improvement in its vacancy rate during the first quarter.

Companies pre-leasing space in under-construction buildings, coupled with large leases signed last year, should drive down vacancy rates in 2022, the researchers say.

What's next: More than 3.3 million square feet of new office space was under development during the first three months of 2022 — more than 60% of which was located in Midtown. Much of that new construction is speculative, Cushman & Wakefield says — "a byproduct of Atlanta’s growing appeal to corporate heavyweights in the technology and finance industries."

Other notable developments on the horizon, according to the firm:

  • Midtown Union, where Invesco will take up more than half of the nearly 600,000 square feet of space
  • New City's new project (and future home of Mailchimp) along the Beltline's Eastside Trail
  • One Phipps Plaza in Buckhead, a 365,000 square-foot development that will house Goldman Sachs and Novelis
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