July 19, 2020
Despite the stresses on the local economy by the ongoing COVID-19 pandemic, the Atlanta office market has held steady during the second quarter of 2020, according to the Madison Marquette Atlanta Q2 2020 Office Market Report.
The firm reported that during the second quarter, Atlanta’s office market managed to post 292,000 square feet of direct net absorption, bringing the year-to-date total up to 1.9 million square feet of occupancy gains. Overall vacancy however, remained unchanged at 15.3% while the overall direct availability rate climbed to 20.3%, reaching its highest level in 8 years.
Notable office lease transactions in the quarter included Microsoft moving forward with a 524,000-square-foot lease at Hines’ Atlantic Yards development in West Midtown. However, Macy’s no longer plans to occupy a 108,000-square-foot location at Hines’ T3 development, also in West Midtown.
“Atlanta’s office market has remained relatively insulated from the most damaging effects of COVID-19 so far, but signs of deteriorating fundamentals are emerging as touring and leasing activity remains slow and tenants are re-evaluating their longer-term space needs,” said Bill Weghorst, president of property services at Madison Marquette.
*Pictured above: Hines’ T3 office development in West Midtown.
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