The Atlanta Commercial Real Estate Market

Shanti Ryle

November 4, 2024

Overhead photo of the Mercedes arena in Atlanta, Georgia

Atlanta's commercial real estate opportunities, skyrocketing population, and business-friendly environment lure investors and tenants nationwide to its thriving metropolitan hub.

Thanks to its sprawling mileage and host of CRE inventory, Atlanta serves as one of the nation's most viable markets. Both investors and expanding businesses can recoup valuable returns on their investments. Crexi equips these searching parties with every tool they require to find the best possible commercial property for their needs.

Buyers and tenants seeking Atlanta commercial buildings harness Crexi's robust search tools and massive marketplace to find the best possible property investment. Additionally, Atlanta-based brokers and those representing Atlanta property for sale utilize Crexi's listing and lead management software to directly connect with interested buyers or tenants. Thanks to Crexi's suite of broker tools, Atlanta commercial agents can save time, discover hundreds of leads, and manage listings more efficiently.

Crexi has facilitated over $615 billion in successful property transactions and marketed over half a million commercial properties worth over $7 trillion in total.

Crexi proudly serves Atlanta, Sandy Springs, Fulton, Hapeville, and Fulton County as the region's fastest-growing digital CRE platform.

Downtown Atlanta, Georgia, with historic buildings against the skyline

The State of Commercial Real Estate in Atlanta

Atlanta, Georgia’s bustling capital, blends Southern heritage with a dynamic, forward-thinking economy. This unique combination has drawn a steady stream of new residents and businesses, fostering one of the country’s most active real estate landscapes. The city’s well-known attractions, thriving entertainment sector, and globally recognized corporate scene contribute to Atlanta’s appeal, making it a top choice for investors and developers alike. Atlanta has consistently shown resilience and adaptability in response to market shifts, positioning itself as a major player on the national CRE stage.

The city’s growth trajectory is strongly supported by its expanding population, which fuels the economy and fosters a cycle of increased demand for goods, services, and commercial spaces. This ongoing population boom not only strengthens Atlanta’s labor market but also drives innovation and entrepreneurship, attracting businesses from various industries. As Atlanta’s economy grows, so does the demand for office spaces, industrial facilities, and retail locations, creating ample opportunities for those invested in the market.

This interdependent relationship between population growth and economic expansion makes Atlanta a unique real estate market. Investors and developers are drawn to this environment, which promises long-term growth and diverse opportunities across various CRE segments. Atlanta’s continuous evolution as a multicultural, business-friendly city positions it as a sustainable hub for commercial real estate.

Atlanta Regional Breakdown

The Atlanta metropolitan area stands out as the 6th-fastest-growing region in the United States. With a population exceeding 6.1 million and projections indicating growth to nearly 7.9 million by 2050, the demand for commercial real estate in the region continues to rise. The city of Atlanta, which itself has a population of nearly half a million, is complemented by surrounding areas like Decatur, Alpharetta, Roswell, and Sandy Springs, all contributing to the metro area’s expansion. This growth has been driven by factors including Atlanta’s strong job market, diverse economy, and high quality of life, which collectively attract residents and businesses alike.

With its largest counties—Fulton, Dekalb, Gwinnett, Cobb, and Clayton—at the forefront, the Atlanta metro area has seen significant development in residential, industrial, and commercial sectors. The region’s median age of 34.5 years suggests a youthful and active workforce, further adding to the area’s appeal for companies seeking a well-educated, skilled labor force. The metro’s median household income of $85,880 is higher than Georgia’s $74,632 state average, highlighting Atlanta’s strong economic standing.

This steady influx of residents has led to increased demand for commercial properties across various sectors, from office buildings in downtown Atlanta to warehouse facilities in the city’s outer regions. Atlanta’s population growth, in combination with a highly skilled labor force, makes it an attractive destination for companies and investors looking to capitalize on a thriving market with considerable growth potential.

People mill about the outside of an Atlanta sports arena

Atlanta Job Market

Atlanta's job market serves as the primary driver of the city's economic growth, attracting a diverse workforce. The metropolitan area boasts a substantial GDP of nearly $525 billion, with consistent growth over the past two decades. As of September 2024, the unemployment rate stood at a low 4.1%, with total jobs increasing by 1.4% from the previous year.

The city's economy is powered by a diverse mix of industries, including technology, healthcare, and logistics, establishing it as a hub for innovation and entrepreneurship. Atlanta is home to 17 Fortune 500 and 31 Fortune 1000 companies, with major players such as Coca-Cola, Delta Airlines, and Home Depot headquartered in the region.

Atlanta's emphasis on STEM careers has positioned it as the fourth most favorable city for STEM professionals in the United States. This thriving job market, combined with the city's cultural offerings and quality of life, continues to attract young talent and fuel population growth, with projections estimating the population to reach 7.9 million by 2050.

Atlanta’s transportation infrastructure includes the Hartsfield-Jackson Atlanta International Airport, one of the busiest airports in the world, a network of interstate highways including I-20, I-75, I-85, and I-285, and the Metropolitan Atlanta Rapid Transit Authority (MARTA).

A mural with the phrase "Atlanta Made" and an arrow pointing to the right

Atlanta Industrial Market

The industrial sector in Atlanta remains strong, bolstered by regional demand, infrastructure expansions, and strategic location advantages. As of Q3 2024, Atlanta’s industrial market saw a vacancy rate increase to 8.1%, up slightly from previous quarters, as market supply continues to stabilize. New leasing activity remains steady, with approximately 7.3 million square feet (msf) of space secured by tenants, bringing demand in line with pre-pandemic levels.

Market overview (Cushman & Wakefield Q3 2024)

Inventory: 774,947,713 SF
Vacancy rate: 8.1% overall
Absorption: 6,747,015 SF (YTD)
Under construction: 10,139,393 SF
Largest submarkets: I-85 North Corridor, I-75 North Corridor, I-20 West/Fulton Industrial

Crexi Insights

These are the most recent Atlanta industrial lease and sales trends from Crexi Insights (as of October 2024):

For Lease (active)

Asking rate/SqFt (median): $12 per year
Median SqFt/listing: 7,500
Days on market: 321
Total listings on Crexi: 159 spaces

For Sale (active)

Median asking price: $2.6 million
Price/SqFt: $241
Asking cap rate: 4.5%
Days on market: 116
Total listings on Crexi: 29 listings for a total of 922,800 SF

Sales Comps (past 12 months)

Median sold price: $1.9 million
Sold price/SqFt: $137
Total sales volume: $155.5 million
Median SqFt sold/transaction: 11,200
Total SqFt sold: 1.4 million
Days on market (median): 255

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Downtown Atlanta with a ferris wheel in the foreground

Atlanta Office Market

The Atlanta office market remains in a transitional phase as tenants adjust to evolving workspace needs. Leasing activity saw a steady increase in 2024, with an average deal size that has grown 60% year-over-year, indicating greater tenant confidence.

Overall, leasing activity has risen by 2.3% year-to-date compared to the same period in 2023, underscoring an uptick in market optimism. Buyers are also showing more activity, though high-class properties are selling at discounted rates compared to pre-pandemic values.

Market overview (Avison Young Q3 2024)

Inventory: 168,957,233 SF
Vacancy rate: 27.7%
Leasing activity: 4,734,577 SF
Absorption:-1,408,978 SF (YTD)
Key leases by tenant: Morris, Manning & Martin, LLP 104,440 SF, Truist Financial 104,100 SF
New construction: 1,454,003 SF under construction
Largest submarkets: Central Perimeter, Cumberland/Galleria, Midtown

Crexi Insights

Crexi provides up-to-date data on the Atlanta office market. Here are the most recent lease and sales trends (as of October 2024):

For Lease (active)

Asking rate/SqFt (median): $27 per year
Median SqFt/listing: 1m876 SF
Days on market: 117
Total listings on Crexi: 781 spaces

For Sale (active)

Median asking price: $1.3 million
Price/SqFt: $246
Asking cap rate: 5.8%
Days on market: 116
Total listings on Crexi: 90 listings totaling 1 million SF

Sales Comps (past 12 months)

Median sold price: $1.4 million
Sold price/SqFt: $258
Total sales volume: $185.7 billion
Sold cap rate:8.0%
Median SqFt sold/transaction: 4,665 SF
Days on market (median): 355

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The outside of the Coca Cola museum in Atlanta

Atlanta Retail Market

Atlanta’s retail market remains strong, bolstered by population growth and resilient consumer spending. The overall vacancy rate in Q3 2024 was 3.7%, a slight increase from previous quarters, yet still near historic lows. Demand for retail space remains robust, with vacancy pressure higher in malls, particularly as redevelopment projects take place across the metro area. Notable examples include the proposed transformation of the Mall West End, which aims to repurpose underutilized retail spaces to meet modern tenant needs.

Market overview (Colliers Q3 2024)

Inventory: 373,600,000 SF
Vacancy rate: 3.5% overall
Absorption: 370,700 SF (YTD 2024)
Key leases by tenant: Sugar Hill Station 25,000 SF, Westside Paper 25,000 SF, Collection at Forsyth 24,000 SF
Under construction: 800,000 SF
Largest submarkets: Gwinnett, Marietta/North Cobb, Georgia 400

Crexi Insights

Atlanta retail lease and sales trends from Crexi Insights (as of October 2024):

For Lease (active)

Asking rate/SqFt (median): $28 per year
Median SqFt/listing: 2,452 SF
Days on market: 216
Total listings on Crexi: 401 spaces

For Sale (active)

Median asking price: $975,000
Price/SqFt: $310
Asking cap rate: 6.1%
Days on market: 122
Total listings on Crexi: 140 listings for a total of 961,200 SF

Sales Comps (past 12 months)

Median sold price: $624,500
Sold price/SqFt: $197
Total sales volume: $57.4 million
Median SqFt sold/transaction: 4,275 SF
Days on market (median): 93

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A timelapsed photo of an Atlanta highway at sundown, facing into the downtown portion of the city.

Atlanta Multifamily Market

The Atlanta multifamily market is seeing renewed demand, though elevated vacancy rates persist due to recent high levels of construction. As of Q3 2024, the vacancy rate has risen to 11.9%, up from 10.5% a year ago, reflecting the challenge of absorbing new units as they come online. Rental rates, however, have shown modest growth, with the average asking rent reaching $1,640 per unit. This slight increase indicates steady demand despite the higher vacancy, suggesting that tenants are absorbing new units at a cautious pace.

Market overview (Lee & Associates Q3 2024)

Multi-unit: 579,529
Vacancy rate: 11.9%
Average asking rent: $1,640
New construction: 14,779 units
Most active submarket: North Gwinnett and Outlying Gwinnett County
Top submarkets by inventory: I-85 North/Gwinnett County, Cumberland/Galleria, I-20 East