Leasing volume remains strong with the potential of an economic soft landing on the horizon

Leasing activity remained robust in the third quarter of 2024, with 2.2 million square feet (msf) of office space leased, representing a 29.4% increase year over year from the 1.7 msf recorded in Q3 2023. This brings the total leasing volume for the first three quarters of 2024 to 7.2 msf, driven by 11 significant leases exceeding 100,000 square feet (sf). Such significant activity includes the largest transaction this quarter, the 104,440-square-foot relocation of Morris, Manning & Martin, LLP to 3560 Lenox Road. The recent Federal Reserve interest rate cuts, with the potential for more on the horizon, can provide a significant stimulus for corporate leasing by lowering borrowing costs. This in turn makes it easier for companies to fund the capital costs associated with new leases or relocations, particularly benefiting larger firms that had delayed decisions in a higher-rate environment. As a result, expect Atlanta to remain a highly desirable market, with robust demand driven by tenants seeking growth and investors capitalizing on the city's resilient and dynamic office sector. 

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