Atlanta's vacant office space
Courtesy of Loudermilk Cos.
Atlanta’s abundance of available office space is becoming a challenge for the commercial real estate market as businesses adapt to a future shaped by remote work.
Building owners are now seeking innovative strategies to attract tenants and generate revenue from their properties.
Savannah Sicurella, a real estate reporter for the Atlanta Business Chronicle, told WABE that some companies are hesitant due to concerns about a potential economic downturn.
The shift towards permanent remote work has resulted in a decline in commercial office space leases.
Sicurella suggests that while this may be the new normal, it also reflects the cyclical nature of the real estate industry.
“After several quarters of setting records with office leases and construction completions, I think the industry is right-sizing itself,” said Sicurela, “but companies are using office space in an entirely different way than they were before the pandemic.”
The vacancy rate for office buildings in the greater Atlanta area currently stands at approximately 21%.
This stands in contrast to previous quarters when office leases were setting records.
Sicurella said it’s clear the way companies use office space has fundamentally changed since the onset of the pandemic.
Christopher Alston contributed to this report.
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