More office space will be removed from Atlanta this year than added to it for the first time since 2012, highlighting the market’s stabilization, according to a new report from CBRE. The report mirrors a national trend.
Currently, 667,254 square feet of office space in Atlanta is undergoing conversion or partial conversion to multifamily, hotel and mixed-use properties, while developers are only slated to deliver 250,000 square feet of office space this year. This trend aligns with the broader U.S.: CBRE’s analysis of office-market activity across the largest 58 U.S. markets found that 23.3 million square feet of space is slated for demolition or conversion, exceeding the 12.7 million square feet of office space projected to be completed this year.
In Atlanta, construction completions have steadily declined from 3.5 million square feet in 2018 to 1.1 million square feet last year and the anticipated 250,000 square feet this year. Meanwhile, an anticipated 667,254 square feet is scheduled for conversion this year, and developers currently have another 2.8 million square feet of office space in the pipeline for conversion or partial conversion to other uses in the coming years.
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