{"id":1004741165,"date":"2025-01-17T01:52:58","date_gmt":"2025-01-17T09:52:58","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004741165"},"modified":"2025-01-17T08:05:08","modified_gmt":"2025-01-17T16:05:08","slug":"atlanta-office-sector-shows-resilience","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/","title":{"rendered":"Atlanta Office Sector Shows Resilience"},"content":{"rendered":"
\n
\"e|spaces<\/a>
Coworking provider e|spaces will occupy a full floor at the 1600 Parkwood Circle in Atlanta\u2019s Cumberland\/Galleria submarket. Image courtesy of Avison Young<\/em><\/figcaption><\/figure><\/div>\n\n\n

Atlanta\u2019s office sector headed toward 2024\u2019s end with mixed performance, but continued to show more resilience than other Sun Belt markets, CommercialEdge data shows. Office buildings in Atlanta still traded at below-average rates, while the market\u2019s overall vacancy managed to remain at relatively healthy levels, considering the sector\u2019s woes.<\/p>\n\n\n\n

A new coworking provider entered the market in 2024, while overall investment volume remained muted. Development was active in some areas, notably with big life science projects taking shape, along with some mixed-use.<\/p>\n\n\n\n

Supply expansion stays on track<\/h2>\n\n\n\n

Atlanta had 1.7 million square feet of office space under construction as of November, which was 0.8 percent of existing inventory\u2014on par with the national figure. Adding planned and prospective developments to the mix brings the share to 2.3 percent of stock.<\/p>\n\n\n\n

Compared to other Sun Belt metros, Atlanta was severely behind Austin, Texas (3.7 percent of stock underway), but slightly ahead of Charlotte (0.7 percent) and Houston (0.7 percent).<\/p>\n\n\n\n

\n\n\n\n

READ ALSO:<\/strong> Office Report: Coworking Spaces Evolve for Post-Pandemic Needs<\/a><\/p>\n\n\n\n

\n\n\n\n

Portman Holdings\u2019 office building within the mixed-use Spring Quarter project had been the largest under construction as of November\u2014it was completed last month. The asset has 530,000 square feet of office, 15,000 square feet of private terraces and 20,000 square feet of amenity space. The larger mixed-use development is also slated to eventually include 40,000 square feet of retail, 370 luxury rental units and 600 market-rate units.<\/p>\n\n\n

\n
\"Rendering<\/a>
Perkins + Will designed the 368,258-square-foot Science Square Labs in Midtown. The development marked Atlanta’s continued bet on life science growth. Image courtesy of Trammell Crow Co.<\/em><\/figcaption><\/figure><\/div>\n\n\n

Developers completed 11 office buildings encompassing 1.6 million square feet across metro Atlanta year-to-date through November. This was 0.7 percent of existing inventory, 10 basis points above the U.S. and 20 basis points ahead of Houston (0.5 percent).<\/p>\n\n\n\n

Georgetown Co., Beacon Capital Partners and RocaPoint Partners completed the first building of Campus 244, an adaptive reuse of a 1970s building, in the Perimeter North submarket. The asset has 377,775 square feet of rentable office space and is part of a larger mixed-use project, which is set to also include restaurants, retail and a hotel.<\/p>\n\n\n\n

Another significant completion earlier in 2024 was Trammell Crow Co.\u2019s first phase of Science Square<\/a>, developed in partnership with Georgia Advanced Technology. The 368,258-square-foot building includes lab and clean room space, base-building systems, a 38,000-square-foot solar array and an energy recovery system.<\/p>\n\n\n\n

Conversion potential grows<\/h2>\n\n\n\n

As office utilization continues to evolve and demand is nowhere near pre-pandemic levels, many owners are looking toward alternative solutions. Conversions to residential use continue to rise in popularity and Atlanta’s office sector is no exception. CommercialEdge created the Conversion Feasibility Index<\/a>, a score calculated from various building characteristics aimed to help developers and investors identify office assets that have a high potential for conversion.<\/p>\n\n\n\n

Atlanta had 16 office buildings\u2014encompassing 2.6 million square feet\u2014in the Tier I category for office-to-residential conversion, which have a CFI ranging from 90 to 100. It also had 74 properties\u201411.7 million square feet\u2014in Tier II, which have a CFI between 75 and 89.<\/p>\n\n\n\n

Invest Atlanta partnered with several companies\u2014including The Integral Group, The Atlantic Cos., T. Dallas Smith & Co. and Lalani Ventures\u2014to redevelop three office assets in the metro\u2019s CBD, Atlanta Business Chronicle <\/em>reported. The buildings at 1, 2 Peachtree St. and 14 Marietta St. total nearly 2 million square feet and are estimated to yield roughly 600 multifamily units, but plans are not final yet. Originally an office tower, 2 Peachtree St. NW dates back to 1966 and rises 44 stories. Holding a CFI score of 75, the property is slated to include 200 affordable units upon conversion.<\/p>\n\n\n\n

Atlanta office sector’s vacancy below nation’s average<\/h2>\n\n\n\n

Office vacancy across metro Atlanta stood at 17.8 percent as of November, up 80 basis points year-over-year. Meanwhile, the national average increased 120 basis points, to 19.4 percent. Compared to its Sun Belt peers, Atlanta\u2019s vacancy fared better than Austin (27.7 percent) and Houston (24.3 percent), but lagged Charlotte (16.4 percent).<\/p>\n\n\n

\n
\"Exterior<\/a>
Ponce City Market spans about 3 million square feet across five buildings and consists of office and retail space, as well as a residential component. Image courtesy of Jamestown<\/em><\/figcaption><\/figure><\/div>\n\n\n

Significant lease deals this year included a mix of renewals and new agreements. In September, T-Mobile renewed its 100,000-square-foot lease<\/a> at CP Group and Farallon Capital Management\u2019s One Ravinia.<\/p>\n\n\n\n

In November, Jamestown signed a new tenant at its Ponce City Market<\/a>. CONA Services agreed to occupy 49,000 square feet at the mixed-use property. The IT company will relocate from its 10 10th St. NE office, where it occupies 32,600 square feet.<\/p>\n\n\n\n

Some larger deals took shape earlier this year, such as Building and Land Technology\u2019s 180,000-square-foot agreement<\/a> at Concourse Office Park in Sandy Springs, Ga. Newell Brands is the new tenant, set to move in by mid-2025.<\/p>\n\n\n\n

New coworking firm enters Atlanta<\/h2>\n\n\n\n

In November, Atlanta had around 4.4 million square feet of shared office space, which was 2.1 percent of the market\u2019s total rentable inventory. The coworking segment continued to steadily grow across the metro, with the share of coworking space being 20 basis points above the national figure. Compared to other Sun Belt markets, Atlanta outperformed Charlotte (1.9 percent), Houston (1.8 percent) and Austin (1.7 percent).<\/p>\n\n\n\n

Last month, coworking provider e|spaces entered the Atlanta market<\/a>. The company leased a 32,030-square-foot, full-floor space at Adventus Realty\u2019s 1600 Parkwood Circle asset. Most of Atlanta\u2019s flexible office is in suburban areas, and e|spaces\u2019 first location is no exception, being in the Cumberland\/Galleria submarket.<\/p>\n","protected":false},"excerpt":{"rendered":"

Find out how the market fared in 2024, based on CommercialEdge data.<\/p>\n","protected":false},"author":1284,"featured_media":1004712037,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1489,21782,22251,52420,21747,32781],"tags":[51047,50674],"class_list":["post-1004741165","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-atlanta","category-development","category-in-focus","category-market-updates","category-office","category-southeast","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"\nAtlanta's Office Sector Shows Resilience<\/title>\n<meta name=\"description\" content=\"Atlanta's office sector was a mixed bag in November, but some fundamentals were in a better spot than other Sun Belt metros.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Atlanta Office Sector Shows Resilience\" \/>\n<meta property=\"og:description\" content=\"Atlanta's office sector was a mixed bag in November, but some fundamentals were in a better spot than other Sun Belt metros.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-17T09:52:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-17T16:05:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/LifeSciences-TrammellCrow-ScienceSquare1-Atlanta-768x960-1-edited.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"768\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tudor Scolca\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/\",\"name\":\"Atlanta's Office Sector Shows Resilience\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/LifeSciences-TrammellCrow-ScienceSquare1-Atlanta-768x960-1-edited.jpg\",\"datePublished\":\"2025-01-17T09:52:58+00:00\",\"dateModified\":\"2025-01-17T16:05:08+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/daae3daa7b99fdfb75a85cb3cd92a26d\"},\"description\":\"Atlanta's office sector was a mixed bag in November, but some fundamentals were in a better spot than other Sun Belt metros.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/LifeSciences-TrammellCrow-ScienceSquare1-Atlanta-768x960-1-edited.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/LifeSciences-TrammellCrow-ScienceSquare1-Atlanta-768x960-1-edited.jpg\",\"width\":768,\"height\":576,\"caption\":\"Perkins + Will designed the 368,258-square-foot Science Square Labs. Image courtesy of Trammell Crow Co.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Atlanta Office Sector Shows Resilience\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/daae3daa7b99fdfb75a85cb3cd92a26d\",\"name\":\"Tudor Scolca\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/TudorScolca_AuthorBio.jpg?w=96\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/TudorScolca_AuthorBio.jpg?w=96\",\"caption\":\"Tudor Scolca\"},\"description\":\"Tudor Scolca-Seu\u0219an is an Associate Editor with Commercial Property Executive and Multi-Housing News. He joined CPE and MHN in 2017 and is passionate about doing research for the two publications. He is responsible for data center and industrial coverage on CPE, writing seasonal metro reports on multifamily, interviews and features, as well as occasionally editing news stories.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/tudor-scolca\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Atlanta's Office Sector Shows Resilience","description":"Atlanta's office sector was a mixed bag in November, but some fundamentals were in a better spot than other Sun Belt metros.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/","og_locale":"en_US","og_type":"article","og_title":"Atlanta Office Sector Shows Resilience","og_description":"Atlanta's office sector was a mixed bag in November, but some fundamentals were in a better spot than other Sun Belt metros.","og_url":"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2025-01-17T09:52:58+00:00","article_modified_time":"2025-01-17T16:05:08+00:00","og_image":[{"width":768,"height":576,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/LifeSciences-TrammellCrow-ScienceSquare1-Atlanta-768x960-1-edited.jpg","type":"image\/jpeg"}],"author":"Tudor Scolca","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/","url":"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/","name":"Atlanta's Office Sector Shows Resilience","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/LifeSciences-TrammellCrow-ScienceSquare1-Atlanta-768x960-1-edited.jpg","datePublished":"2025-01-17T09:52:58+00:00","dateModified":"2025-01-17T16:05:08+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/daae3daa7b99fdfb75a85cb3cd92a26d"},"description":"Atlanta's office sector was a mixed bag in November, but some fundamentals were in a better spot than other Sun Belt metros.","breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/LifeSciences-TrammellCrow-ScienceSquare1-Atlanta-768x960-1-edited.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/LifeSciences-TrammellCrow-ScienceSquare1-Atlanta-768x960-1-edited.jpg","width":768,"height":576,"caption":"Perkins + Will designed the 368,258-square-foot Science Square Labs. Image courtesy of Trammell Crow Co."},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/atlanta-office-sector-shows-resilience\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Atlanta Office Sector Shows Resilience"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/daae3daa7b99fdfb75a85cb3cd92a26d","name":"Tudor Scolca","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/TudorScolca_AuthorBio.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/TudorScolca_AuthorBio.jpg?w=96","caption":"Tudor Scolca"},"description":"Tudor Scolca-Seu\u0219an is an Associate Editor with Commercial Property Executive and Multi-Housing News. He joined CPE and MHN in 2017 and is passionate about doing research for the two publications. He is responsible for data center and industrial coverage on CPE, writing seasonal metro reports on multifamily, interviews and features, as well as occasionally editing news stories.","url":"https:\/\/www.commercialsearch.com\/news\/author\/tudor-scolca\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/LifeSciences-TrammellCrow-ScienceSquare1-Atlanta-768x960-1-edited.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004741165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1284"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004741165"}],"version-history":[{"count":10,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004741165\/revisions"}],"predecessor-version":[{"id":1004743650,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004741165\/revisions\/1004743650"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004712037"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004741165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004741165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004741165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}