How have Atlanta CBD office rates reacted in prior downturns?
A review of average rent declines during prior downturns demonstrated relative resilience
June 08, 2020
- Since 2000, Atlanta CBD office downturns have seen 7.2% average rent declines with 5 years to return to pre-recession levels
- In 2001, following the dot-com crash and 9/11, Atlanta CBD office rates decreased by 8.3% and required 5 years to recover to peak 2001 levels. After the 2009 Great Recession, rates also required 5 years to return to pre-recession highs, but only dropped by 6.0%.
- Looking in detail at growth trends following the Great Recession, the metro experienced organic growth from 2013 to 2016 as businesses rebuilt from the financial crisis. However, beginning in 2016, development in the metro exploded, ultimately pushing rates to their recent highwater marks.
- Atlanta’s rate resilience can be partially attributed to its industry diversity, helping the metro to quickly recover from economic impacts. Coming out of the Great Recession, Atlanta’s knowledge economy grew as tech companies began looking to the metro for expansions and relocations due to the region’s low costs of business and living, and increasing tech talent base. As Atlanta’s tech presence grew, iconic creative office projects like Ponce City Market and Coda were developed, creating further momentum in the market.