The city came out of 2013 with a lot of momentum, momentum that helped carry us through a very successful first quarter of 2014. Atlanta led the country in vacancy rate declines (from 21% to 20.4%) as a number of large tenant relocations and expansions swept through the Metro area. The demand for office space in Atlanta was driven by the tech, healthcare, and professional service industries. The lack of new supply is causing submarkets like Buckhead, Central Perimeter, and Midtown to become very constrained as current tenants begin to expand. Many companies who had once hoped to break into these market are now looking to the Northwest and North Fulton submarkets as alternatives.
On the industrial side, several big-name tenants announced relocations and/or expansions across the Metro Atlanta area. The vacancy rate dropped to 14.9% after those large tenants scooped up a cumulative 2.5 million square feet of space in Q1 alone. The industrial market is similar to the office market in that there has been no new supply since before the recession, which is the reason why so many new development are currently underway, including a spec development in Cobb.Share