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Renewals dominate Atlanta office leasing as construction costs stay high
Renewals made up 6 of the 10 largest office leases in Atlanta’s third quarter, while renewal activity rose nearly 25% from the second quarter, according to Savills and Cushman & Wakefield.
Atlanta office leasing saw its slowest quarter since Q1 2023 as more tenants opted to renew rather than take space in a market with rising construction costs and no new office deliveries, according to Bisnow citing Savills.
Renewals accounted for six of the 10 largest leases signed in the third quarter, including BakerHostetler’s renewal and expansion to 88K SF and Acuity Brands’ nearly 49K SF renewal, both tied to the Proscenium office tower in Midtown.
The only new leases in the top 10 were ASP Global’s 24K SF deal in Cobb County and EverOn Data Center Services’ lease for 21,500 SF in Midtown, with the remaining two top-10 moves coming from an extension and an in-market relocation.
Cushman & Wakefield said renewal activity jumped nearly 25% from the second quarter, with companies renewing more than 714K SF, or nearly 78% of the 920K SF of total leasing in the third quarter.
Bisnow attributed the view that more renewals are likely to continue while construction costs remain elevated, citing Colliers Vice Chair Jodi Selvey on renewals being the preferred choice.