Q4 2025 | Atlanta Office Market Update
- Jan 14
- 3 min read
Updated: Mar 30
ECONOMY:
ATLANTA SECURED MAJOR CORPORATE EXPANSIONS
Georgia was named the top state for doing business for the 12th consecutive year, reinforcing its reputation as a leading hub for economic growth.
Atlanta helped drive this momentum with several high-profile expansions:
Salesforce is investing in a $15 million expansion that will add more than 250 jobs to Atlanta by 2028
TriNet’s new headquarters in Dunwoody will create 750 roles over five years
AIG’s phased move-in will generate 600 jobs in Central Perimeter by 2026.
These announcements emphasize the region’s strong business climate, complemented by steady labor market gains. Total nonfarm employment grew 0.5% year-over-year (YOY), signaling consistent, modest job growth across the metro.
DEMAND:
NEW LEASING ACTIVITY HELD STEADY WHILE RENEWALS SURGED
The office market demand remained stable in Q4, with 1.4 million square feet (msf) of new leases signed—down a mere 3.4% quarter-over-quarter (QOQ). Quarterly activity brought the annual total to 6.1 msf. Non-CBD submarkets accounted for 67.0% of the metro’s total, led by Georgia 400, Central Perimeter, and Northwest, each surpassing 1.0 msf in new leasing volume. These areas continued to attract tenants due to the proximity to highly amenitized areas.
As many tenants recommitted to their spaces, renewal activity reached 1.2 msf in Q4—a substantial 119.8% quarterly increase.
Major renewals dominated leasing throughout the quarter, including:
Bank of America at Southside Center (230,241 sf)
Kilpatrick Townsend & Stockton LLP at Eleven Hundred Peachtree Street (148,112 sf)
AGCO Corporation at 4205 River Green Parkway (125,800 sf).
Notably, this is the first time this year that renewals captured all five top leasing deals, as no new lease transactions entered the top rankings in Q4.
SUPPLY:
VACANCY DECLINED AMID STRONG ABSORPTION ACROSS SUBMARKETS
Atlanta’s overall vacancy rate declined by 30 basis points (bps) QOQ to 25.0% to its lowest point in seven quarters. In Q4, both the Central Business District (CBD) and non-CBD segments improved, with vacancy falling 37 bps to 31.2% and 28 bps to 21.2%, respectively. Six of the nine submarkets posted quarterly declines. The Airport submarket maintained the lowest vacancy at 12.5%, while Buckhead recorded the largest improvement, dropping 79 bps to 28.2%. This decline was largely driven by SouthState’s 79,072 -sf relocation and expansion within Buckhead, where the bank’s growing footprint boosted the submarket’s absorption. In contrast, Central Perimeter recorded the largest increase in vacancy, driven by a single, large tenant move-out.
Atlanta ranked among the nation’s top 10 markets for positive absorption, posting a healthy 473,524 sf of net occupancy gains in Q4 and 828,674 sf for the year. This marked the first time in two years that annual absorption has turned positive, signaling a strong rebound at year end—despite notable move-outs like IBM vacating nearly 240,000 sf in Central Perimeter. Even with this large move-out in the non-CBD, eight of Atlanta’s nine submarkets recorded positive net absorption by end of 2025, and all suburban submarkets posted occupancy gains. Momentum in the non-CBD was further bolstered by the largest Q4 move-in in Central Perimeter, where Infor subleased and occupied 82,000 sf at Campus 244.
Within the CBD, two submarkets documented positive absorption. Midtown’s 2025 gains were boosted by CONA’s 49,000-sf move into Ponce City Market and Simpson Organization’s 22,892- sf move into Regions Plaza. While Midtown led the CBD in annual absorption, Buckhead posted the strongest quarterly absorption with SouthState’s aforementioned relocation and expansion.
RENTAL RATES:
DIRECT RENTAL RATES INCREASED MODESTLY
The lack of new premium construction delivering to the market contributed to rent stabilization during Q4. Direct rental rates averaged $33.33 per square foot (psf) at the close of Q4, largely unchanged from the previous quarter but up 1.1% YOY. Non-CBD rates posted steadier gains, rising 1.4% annually to $27.56 psf by year-end. In the CBD, Midtown remained the most expensive submarket in Atlanta, commanding 37.4% premium over the metro’s average rate.
MARKETBEAT:
Atlanta Q4 2025
market statistics
key lease transactions
Under Construction Projects 2025
Key Sales Q4 2025
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