Atlanta’s office market reached an inflection point in the first half of 2025. Net absorption surged and vacancy declined as new tenant commitments increased, with metro Atlanta’s suburbs leading the way in most metrics. The uptick in return-to-office mandates, the limited under construction pipeline, and physical transformation of workplaces all play key roles in the shift in office dynamics.

Atlanta Office Fundamentals

Leasing Activity

The office market remained stable as 1.2 million square feet (msf) of new leases were signed during the second quarter of 2025, bringing the year-to-date total to 3.0 msf. Suburban submarkets accounted for 70.0% of this total, or 819,466 square feet (sf), the largest share in three years. Central Perimeter led all submarkets with 282,787 sf of new leasing—securing it with the most leasing in Metro Atlanta three of the past five quarters. The GA 400 submarket recorded 203,508 sf of new transactions in Q2, almost entirely concentrated within Alpharetta, bringing its mid-year total to 713,011 sf, the most in Atlanta. Office requirements in the Central Business District (CBD) were most pronounced in Buckhead, which captured 224,675 sf of new leasing activity, topping all submarkets in the urban core for the second consecutive quarter.

Absorption

The metro boasted 854,074 sf of net absorption in the second quarter, the most since Q3 2021 and the second largest total in the U.S. Midtown surpassed all submarkets with 389,186 sf of occupancy gains, pushing the CBD absorption total to a three-year high. Every suburban submarket documented occupancy growth for the quarter, propelling the non-CBD to 479,638 sf of net absorption. Central Perimeter benefited from the highest non-CBD absorption total, reaching 164,887 sf.

Vacancy

In tandem with occupancy gains, overall vacancy declined by 60 basis points (bps) quarter-over-quarter (QOQ) to 24.8%, the second consecutive quarterly drop.

The percentage of vacant space in the non-CBD declined by 60 bps to 20.9%, a two-year low. A slowdown in the number of new large-block vacancies coupled with a lack of new construction has spurred a reduction in the volume of unoccupied office space. Additionally, large corporate occupiers generally seek newer, Class A space surrounded by amenities. The greater demand in suburban office product built or renovated since 2010 has curtailed the availability of large vacant spaces in newer suburban buildings.

Such dynamics are also beginning to emerge in the CBD, where overall vacancy declined by 60 bps to 31.0%. The percentage of vacant space in Midtown fell by 150 bps to 32.5%, the largest quarterly drop in the Atlanta Metro, excluding Northlake/Decatur. With just one office building under construction in the CBD—the 200,000-sf 1072 West Peachtree—vacancy is poised to tighten further in the coming year, especially for Atlanta’s high-end office space.

Rental Rates

While well-capitalized landlords continued to offer generous concessions such as tenant-improvement allowances to attract tenants instead of lowering rates, direct asking rents recorded little movement in the second quarter, landing at $33.42 per square foot (psf). Suburban rates were up 0.6% QOQ to $27.52 psf, while CBD rates edged down slightly by 0.4% to $39.57 psf. A lack of new premium product mitigated rental growth, particularly in Midtown, where rates dipped 0.5% to $45.91 psf. With the office construction pipeline coming to a near standstill, the availability of premium space is expected to tighten over the next few years, potentially limiting rental rate increases.

Atlanta’s Office Utilization Landscape

The growing prevalence of return-to-office mandates is playing a key role in changing market dynamics. As these mandates continue to gain momentum, Cushman & Wakefield developed a survey to understand how companies across Atlanta are shaping office utilization strategies amid workplace shifts. The team collected responses from 183 companies across 10 industries, with five to 10,000 Atlanta employees.

Nearly 82% of respondents have in-person office mandates with 82% of respondents requiring three or more days in the office. Of the companies that also require specific days, Wednesday is the most mandated day. Companies in construction/architecture/real estate, legal, and transportation & warehousing had the highest share of in-person mandates.

Survey results also showed that mandates have proven to be a successful strategy. Nearly 68% indicated the mandate did not result in turnover, while 19% were unsure. Of the companies that have in-person mandates, 83% reported their offices are between 50-100% occupied during peak hours. Additionally, 74% of companies have not disposed of office space, followed by just 15% that have reduced their space by 10-29%.

While mandates formalize office utilization policies, there are many incentives for occupiers to return to the office. There is a reason that vacancy in top-tier office buildings is below the Atlanta average, as occupiers have leased high-end space as part of the effort to bring employees back to the office. These are, of course, the best locations in both the suburbs and CBD that generally have walkable amenities, inviting outdoor and common spaces – lobbies, elevators and meeting areas – that are of the absolute highest finish.

Workplace strategy

Post-pandemic, forward-thinking companies also have revolutionized a workplace that not only drives return-to-office efforts but also meets the needs of multiple generations. These decisions have also been key in attracting employees back into the workplace. Key design considerations start before employees even enter the property or walk into the building, taking the commute into consideration and providing covered drop-off zones, secure bike storage, EV charging stations and intuitive wayfinding in welcoming lobbies. First impressions inside the building can be accentuated with touchless entry systems, bright lobbies with soft seating, local art and hospitality-style receptions.

In the workplace itself, flexible zones with ample quiet pods and collaborative spaces, ergonomic furniture, layered lighting and enhanced air quality are increasingly table stakes in terms of employees’ expectations, along with plug-and-play AV systems, wireless power stations and accessible tech for seamless collaboration. Open, community zones are designed to include multipurpose assembly areas, daylit café hubs and reflective libraries with open layouts that encourage connection. Office-using employers and office designers increasingly employ wellness and retreat spaces, too, with mindfulness rooms, outdoor terraces, onsite fitness areas, and inclusive spaces like mother’s rooms or sensory retreats. For the end of the workday, locker and storage areas near exits, clear transit wayfinding and lighting that transitions naturally to promote evening rhythms are increasingly part and parcel to the modern workplace.

Designing for inclusiveness and collaboration across generations creates work environments that meet the needs of a multigenerational workforce that demands adaptability, creativity and a focus on well-being. Thoughtful, intentional design can foster inclusion, encourage collaboration, and support productivity for employees at every stage of their careers. Those thoughtful spaces pave the way for meaningful collaboration and a stronger shared future. By merging flexibility, inclusiveness and wellness into workplace design, organizations can cultivate environments where employees feel supported, connected and empowered to thrive across generations.

Atlanta’s office market is undergoing a meaningful transformation, driven by healthy leasing activity, tightening vacancy, and a renewed focus on workplace strategy. The resurgence of return-to-office mandates, coupled with limited new construction and evolving tenant expectations, has accelerated demand for high-quality space—particularly in the suburbs and select urban submarkets. At the same time, occupiers are reimagining the workplace to meet the needs of a multigenerational workforce, blending flexibility, wellness, and inclusivity into the built environment.

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