CBRE

FIGURES|ATLANTAOFFICE|Q42025

Improvedabsorptiondrivesmomentumfor

Atlanta'sofficemarket

31.5%

304K

SFNetAbsorption

224K$33.71$54.56

TotalAvailabilityPercent

SFUnderConstructionOverallDirectLeaseRatePrimeDirectLeaseRate

Note:Arrowsindicatechangefrompreviousquarter.

FIGURE1:LeasingActivitySFbyyear.Leasingactivityunitsmeasuredper1millionsq.ft.12.0

10.0

8.0

KeyTakeaways

-Q4closedwithavailabilityholdingsteadyat31.5%.Althoughstillhigh,thispercentagehasdecreased1%Y-o-Y.

-Absorptionincreasedtopositive304Ksq.ft.inQ4,reflectingcommitmentsfromlargeroccupiersseekinghigher-qualityspace.

-Askingrentsroseto$33.71persq.ft.,a3%riseY-o-Y.Forthefirsttimethisyear,primebuildingrentsdeclinedto$54.56persq.ft.butstillreflecteda4%Y-o-Yincrease.

6.0

4.0

2.0

0.0

2022

2023

20242025

Q1

Q2Q3

Q4Availability

TheAtlantaofficemarketcontinuedtoshowmeasuredsignsofstabilizationinQ4,supportedbystrongerleasingactivityandareturntopositiveabsorption.Tenantscommittedto2.5Msq.ft.ofspace,with65%tiedtonewleasesorexpansions,pushingabsorptionto304Ksq.ft.thisquarter.Availabilityheldat31.5%,whiletherateremainshigh,theamountoftrulyfunctionalspaceremainedfarmorelimited,withonly23.3%ofClassAproductconsidered“availableperforming.”Rentscontinuedtheirupwardtrend,withthemarketaveragereaching$33.71persq.ft.,a3%Y-o-Yincrease.Withjustoneconstructionprojectunderwayandobsoletespacesteadilybeingremoved,themarketisshowinggradualimprovement.Lookingahead,supplyisexpectedtotighten,thoughmuchofthemomentumwillremainconcentratedinthemarket’stop-performingassets.

Source:CBREResearch,Q42025

34%

33%

32%

31%

30%

29%

28%

27%

26%

1CBRERESEARCH?2025CBRE,INC.

FIGURES|ATLANTAOFFICE|Q42025

2CBRERESEARCH?2025CBRE,INC.

LeasingActivity

LeasingvolumeimprovedQ-o-Q,with2.5Msq.ft.ofdealssignedinQ4.Encouragingly,65%ofthesetransactionswerenewleasesorexpansions,signalingcontinuedpositivesentimentamongoccupiers.Infact,newleasesandexpansionsconsistentlyaccountedfortwo-thirdsofactivitythroughoutthewholeyear.Amongthequarter'slargesttransactionswereaconfidentialdealfromanationaltelecommunicationprovideratNorthpark600,a148Ksq.ft.renewal/contractionfromKilpatrickTownsendat1100PeachtreeinMidtownandafullbuildingrenewalfromAGCOinDuluth.Despitesomecontraction,theexecutionoftheselargerdealsunderscoresimprovedoccupierconfidence.Tenantsarereinforcingtheirneedtoretainspace,signalingamoredeliberateapproachtolong-termoccupancyandmarketpresence.

FIGURE2:KeyLeasingTransactionsinQ4

Tenant

Location

Size(sq.ft.)

Submarket

TransactionType

Confidential

Northpark600

165,941

CentralPerimeter

NewLease

KilpatrickTownsend

1100PeachtreeSt

148,112

Midtown

Renewal/Contraction

AGCO

4205RiverGreenPkwy

125,800

Northeast

Renewal

Confidential

900AshwoodPkwy

80,746

CentralPerimeter

Renewal/Contraction

FIGURE3:KeySaleTransactionsinQ4

Location

Size(sq.

ft.)

Submarket

SalePrice

PricePer

Sq.ft.

Seller

Buyer

CrownePointe

(2buildingPortfolio)

499,968

Central

Perimeter

$38Million

$76.00

PacificOak

Capital

AlkamyCapital

*800&900North

PointParkway

306,354

NorthFulton

18.5Million

$60.00

CIBC

OnwardInvestors

35GlenlakePkwyNE

118,399

Central

Perimeter

$16.5Million

$139.04

UPS

KennedyWilson

OnePointRoyal

151,051

NorthFulton

$15.7Million

$104.14

AtlantaProperty

Group

NorthPointMinistries

*NoteSale

Source:CBREResearch,Q42025

PerformingInventory

Atlanta’sClassAofficemarketcontinuestoreflectacleardividebetweenperformingandnonperformingassets.Performingbuildingsareownedbylandlordsinstrongfinancialstanding.Theseownerscanfundtenantimprovements(TI),offercompetitiveconcessionpackages,andreliablyfulfillleaseobligations.Incontrast,buildingsthatarenotperformingmaybemanagedbylandlordswhofacechallengesinmeetingloanobligationsorwhoofferlimitedincentivestotenants.Whiletheymayappearinmarketlistingsasavailable,theyarenottrulyleasableandshouldnotbeconsideredpartofthefunctionalsupply.Inthemiddleofthese,arebuildingstakenbackbylenderswhoarepositioningtheirassetstobeperforming.Fortenantsseekingdependable,move-inreadyspacewithresponsiveownership,performingbuildingsreflectthetrueinventorythatcanmeettheiroperationalandstrategicneeds.

OfthetotalClassAinventoryintheAtlantamarket,only23.3%consistsof“availableperforming”assets.Additionally,justover61.4%ofthisperforminginventoryisfullyoccupied,highlightingthelimitedsupplyofhigh-qualityspacetenantscanrealisticallypursue.Evenmoreso,thegapof“availableperforming”inventorysupplynarrowsfurtherwhenevaluatingClassAavailabilityintheCBD.Only14Msq.ft.,or13.6%,ofspaceavailableintheCBDisconsideredperforming.Overall,theperforminginventoryhasremainedstablethisyear,signalingqualityspaceoptionswillcontinuetobeconstrainedforprospectsinthemarket.

FIGURE4:ClassAinventorydistributionbasedonsq.ft.

61.4%

64M

6.5%

7M

8.8%

9M

23.3%

24M

AvailablePerformingOccupiedPerforming

NonperformingOtherClassAInventory

Source:CBREResearch,Q42025

FIGURES|ATLANTAOFFICE|Q42025

3CBRERESEARCH?2025CBRE,INC.

OfficeAbsorption

TheAtlantaofficemarketrecorded304Ksq.ft.ofpositiveabsorptionthisquarter,drivenlargelybyanationaltelecommunicationsprovidersecuring166Ksq.ft.atNorthpark600,markingCentralPerimeter’slargestnewdealoftheyear.Despitebetterthanaverageleasing,CentralPerimeterendedtheyearwith395Ksq.ft.ofnegativeYTDabsorption.Themostsignificantmove-outcontributingtothelosswasIBMvacating235Ksq.ftat6301-6303BarfieldRdNE.Onapositivenote,Cumberland/Gallerialedthemarketinquarterlygains,fueledbymultiplenewleasesandexpansionstotalingover44Ksq.ft.at900Circle75.Cumberland/Galleriaremainedthetopperformerforannualabsorptionendingtheyearwith416Ksq.ft.innewleasessigned.Despitewideswingsinabsorption,suburbanavailabilitystabilized,supportedbystrongerleasingandtheremovalofobsoletespace.Conversely,theCBDendedtheyearwith339Ksq.ft.innetmove-outsasoccupierstargetedperforminginventoryandvacatedlowertieredspace.

FIGURE6:ClassAAbsorptionandAvailability-Measuredpermillionsq.ft.unitsandpercentage

1.0

0.5

0.0

-0.5

-1.0

-1.5

Q1Q2Q3Q4

2022

Q1Q2Q3Q4

2023

Q1Q2Q3Q4

2024

Q1Q2Q3Q4

2025

38%

36%

34%

32%

30%

28%

26%

24%

22%

ClassAAbsorptionClassAAvailabilityRate

SubleaseAvailability

Subleaseinventorydecreasedto8.1Msq.ft.,down100Ksq.ft.Q-o-Q.Thedeclineisprimarilytheresultof235Ksq.ft.ofsubleasespaceexpiringandconvertingtodirectspacebyIBMinCentralPerimeter.NorthFulton,Midtown,andCumberland/Galleriaremainthelargestsourcesofsubleaseavailability,collectivelyaccountingfor55%ofthemarkettotal.Notably,thepaceofnewsubleaseadditionsslowedforthesecondconsecutivequarter,apositivesignthatreflectstenants’increasingneedtoretaintheirspacecommitments.Theaveragesubleasesizeheldsteadyat21Ksq.ft.,withthetechnologysectorrepresentingnearlyone-thirdofallavailablesubleasespace.

FIGURE7:AvailableSubleaseInventory

Downtown

668,703Buckhead

\496,877

Northwest

436,048

Northeast

278,908

Northlake

115,971

CentralPerimeter1,397,807

MidtownWest

109,955

PeachtreeCorners

Cumberland/Galleria

Midtown1,570,986

81,912

1,419,023

NorthFulton1,447,684

Source:CBREResearch,Q42025

Source:CBREResearch,Q42025

FIGURES|ATLANTAOFFICE|Q42025

4CBRERESEARCH?2025CBRE,INC.

OfficeOccupancyandAvailability

Q4closedwithavailabilityholdingsteadyat31.5%.Althoughstillhigh,thispercentagehasdecreased1%Y-o-Y.Notably,justover25%ofthetotalofficesupplyaccountsforhalfofallvacantspaceinthemarket,underscoringtheunevendistributionofdemand.Theavailabilityoflargeblockshasalsoshiftedacrosssubmarkets.Buckheadobservedareductioninavailablelargeblocksthisquarter,drivenbyimprovedleasing.

Midtownleadsthesubmarketswith41largeblocksofspaceover40Ksq.ft.availableforlease.Downtownvacancyrosesignificantlywith8largeblocksaddedthisquartermakingitthethirdleadingsubmarketwithahighcountofcontiguousblocksofspace.Withthis,Downtownnowaccountsfor15%ofallvacantspaceinthemarketincreasingby5%Q-o-Q.Overall,thetotalnumberoflargeblocksamongtheremainingsubmarketshaveseenslightshifts,withthesuburbaninventoryaccountingforagreaterportionofthelargeblocks.

FIGURE8:Numberofcontiguousblocksofspace40Ksq.ft.andup,inexistingbuildings

Midtown

CentralPerimeter

Downtown

Cumberland/Galleria

NorthFulton

Buckhead

PeachtreeCorners

Northlake

1

40

32

6

26

5

20

10

21

3

20

1

6

2

3

4

051015202530354045

FIGURE9:Percentagedistributionoflargeblocksofspace40Ksq.ft.andup,inexistingbuildings

6.9%

3.2%

19.0%

3.7%

Midtown

CentralPerimeter

9.7%

Downtown

Cumberland/Galleria

NorthFulton

Buckhead

PeachtreeCorners

Northlake

17.6%

11.1%

Other

13.9%

14.8%

ClassAClassB

Source:CBREResearch,Q42025Source:CBREResearch,Q42025

FIGURES|ATLANTAOFFICE|Q42025

5CBRERESEARCH?2025CBRE,INC.

OfficeRentalRates

TheaveragerentalrateintheAtlantaofficemarketroseto$33.71persq.ft.duringthequarterandrepresentsa3%Y-o-Yrise.Thisgrowthhasbeendrivenbymarginalrateincreasesacrossthemarketthankstotheavailabilityofhigherqualityspaces.MidtowncommandsthehighestratesinthemetroareawithClassAratesaveraging$47.10persq.ft.,increasingby4%Y-o-Y.Thisoutpacedrentgrowthinothersubmarketsandremainswellabovethemarketaverage.

Rentsforthemostcovetedtrophyassets,orprimebuildings,declinedforthefirsttimethisyearto$54.56persq.ft.inQ4.TheshiftwaslargelytheresultofpremiumrentadjustmentsinMidtownWest.Despitethedip,primerentsstillreflecteda4%Y-o-Yincrease.Withprimesupplycontinuingtotighten,rentsareexpectedtotrendupwardintothenewyear.

FIGURE10:ClassAAverageGrossDirectRentalRates

Prime

CBD

MidtownWest

Midtown

Buckhead

Downtown

Suburban

NorthwestCentralPerimeter WestAtlanta Cumberland NorthFultonNorthlake

AirportSouth

$

$2

$32.16

$33.16

$32.75

$32.50

$31.93

$28.44

27.03

6.59

$54.56

$50.57

$47.10

$41.97

0102030405060

Source:CBREResearch,Q42025

OfficeConstructionandDeliveries

Thefourthquarterclosedwithnodeliveries,endingtheyearwith1072WestPeachtreeastheonlyactiveconstructionprojectinthepipeline.The60-storymixed-useskyscraperincludes224Ksq.ft.ofofficespaceandisscheduledforaSpring2026completion.Whilenomajordevelopmentshavestartedthisyear,redevelopmentremainsadefiningtrend.Manyexistingofficepropertiesarebeingdemolished,repurposedoracquiredbyowner-users.CentralPerimeterisleadingthisshift,withaprojectedlossof3.5Msq.ft.ofofficespaceinthecomingyears.Thecombinationoflimitednewsupplyandthetrimmingofexistingofficestockisexpectedtoplaceupwardpressureonrentrates,particularlyinareaswithstrongdemand.

FIGURE11:ConstructionandDeliveries–Constructionunitsmeasuredpermillionsq.ft.

3

2

1

0

1Q232Q233Q234Q231Q242Q243Q244Q241Q252Q253Q254Q25

Source:CBREResearch,Q42025

UnderConstructionDeliveries

FIGURES|ATLANTAOFFICE|Q42025

6CBRERESEARCH?2025CBRE,INC.

FIGURE12:MarketStatistics

Submarket

NetRentableArea

(sq.ft.)

TotalVacancy%

TotalAvailability%

Q42025NetAbsorption

(sq.ft.)

YTDNetAbsorption

(sq.ft.)

UnderConstruction

(sq.ft.)

Avg.GrossDirectAsking

LeaseRate

($/sq.ft./yr)

Deliveries

(sq.ft.)

Downtown

17,190,056

32.2%

38.1%

(35,773)

(225,374)

-

$31.61

0

Midtown

23,021,590

30.0%

37.2%

7,465

(46,615)

224,000

$45.10

0

Buckhead

17,746,065

28.2%

33.9%

5,147

(110,505)

-

$40.32

0

MidtownWest

3,399,484

40.2%

41.1%

34,292

44,014

-

$48.90

0

CBD

61,357,195

30.7%

36.8%

11,131

(338,480)

224,000

$40.27

0

Cumberland/Galleria

18,190,048

19.8%

26.5%

158,953

416,369

-

$29.94

0

Northwest

2,501,840

23.8%

26.9%

5,102

(8,062)

-

$28.79

0

CentralPerimeter

23,474,824

26.7%

32.3%

(66,708)

(395,169)

-

$30.68

0

NorthFulton

19,089,260

25.3%

30.3%

114,670

228,367

-

$26.63

0

I-85/Northeast

6,543,824

14.4%

19.9%

53,567

97,817

-

$22.50

0

PeachtreeCorners

4,703,420

20.6%

25.8%

2,949

56,583

-

$21.80

0

Northlake/Decatur

8,391,989

17.6%

23.8%

(5,211)

(237,830)

-

$26.19

0

AirportSouthAtlanta

2,829,329

14.9%

18.0%

(18,135)

(48,353)

-

$21.84

0

I-20West

304,745

29.7%

19.2%

47,418

44,770

-

$28.77

0

EastAtlanta

302,869

14.3%

14.3%

-

(19,128)

-

$23.02

0

EastCobb/JohnsonFerry

189,776

10.6%

14.7%

-

688

-

$19.66

0

SUBURBAN

86,521,924

22.3%

27.8%

292,605

136,052

-

$28.01

0

ATLANTA

147,879,119

25.7%

31.5%

303,736

(202,428)

224,000

$33.71

0

ATLANTA-ClassA

104,791,856

27.5%

33.9%

102,763

(39,184)

224,000

$36.35

0

ATLANTA-ClassB

41,617,171

22.0%

26.1%

208,316

(160,009)

-

$25.35

0

Source:CBREResearch,Q42025

FIGURES|ATLANTAOFFICE|Q42025

SurveyCriteria

Includesallclassesofcompetitivesingleandmulti-tenant,non-owner-occupiedofficebuildings30,000sq.ft.andgreaterinMetroAtlanta.Excludes:governmentandmedicalbuildings.

Definitions

AvailabilityPercent:Totalavailablesq.ft.dividedbythetotalbuildingarea.

AvailableSq.Ft.:Spaceinabuildingreadyforoccupancywithinsixmonths;canbeoccupiedorvacant.

VacancyPercent:Totalvacantsq.ft.dividedbythetotalbuildingarea.

VacantSq.Ft.:Existingspacenotoccupiedbyatenant.Vacantspacecanbeavailableornotavailable.

DirectSpace:Spaceleaseddirectlyfromtheownerofthebuilding.

SubleaseSpace:Leasedspacebytenantorlesseeofpartorallleasedpremisestoanothertenantbutwiththeoriginaltenantretainingsomerightorinterestundertheoriginallease.

Avg.GrossLeaseRate(Direct):Acalculatedaveragethatincludesgrossleaserate,weightedbytheircorrespondingavailablesquarefootage;indirectspaceonly.

TotalRentableArea:Thetotalrentablefloorareasquarefeetofthebuilding.

OccupiedSq.Ft.:Buildingareanotconsideredvacant.

NetAbsorption:Thechangebetweenleasedandvacatedspacefromoneperiodtoth