Sublease additions drive availability upwards in Atlanta

With many organizations looking to reduce costs in the current environment, sublease space in the Atlanta metro has reached an all-time high of 4.8 million square feet (msf) available - up 35.6% year over year. This pushed the market’s overall availability rate to 22.7%, an increase of 180 basis points over the quarter. Owners have been hesitant to significantly reprice asking rates, even in the face substantial sublease additions. Average asking rents held flat over the quarter, now at $29.32 per square foot (psf) but are likely to decline as additional lower-priced sublease options come to market. Market conditions are expected to continue to soften through the remainder of the year as the pandemic impact drags on. Still, developers and investors are remaining bullish on the market’s future and several new developments are poised to break ground soon.

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