Q1 2024 Market Report Reveals Insights About Downtown Atlanta

Downtown Atlanta exhibits a dynamic mix of growth and resilience across diverse real estate market sectors and quality of life elements. As more employees return to the office and big events like the 2026 World Cup loom, it’s more important than ever to be informed about the current state of our city center . The Q1 2024 Downtown Market Report provides exclusive insights into current trends in the office, hotel, retail and multi-family housing markets, combined with data-driven updates on visits and crime.

Keep reading to discover four key points that summarize the market’s performance during the quarter.

1. Rent growth in the office market and new leasing activity amid high vacancy rates
   The downtown Atlanta office market has demonstrated resilience, with rents exceeding pre-pandemic levels by more than 10% compared to the first quarter of 2019. The vacancy rate remains elevated, reflecting adjustments in price in the market due to remote work policies. Despite the office market’s challenges, there were 43,844 square feet of direct leases and a net absorption of 6,324 square feet, an improvement from the negative absorption reported in the first quarter of 2023.
   
2. Higher rents asked and upcoming business openings
   Asking rents in the downtown Atlanta retail market reached $34.13 per square foot, an increase of 81% from the first quarter of 2019. Despite an 8% vacancy rate, the market has experienced six direct rentals. Upcoming retail establishments like Butter + Scotch, Mendoza Cafe y Vino and SKOL Brewing Company are expected to improve the downtown business landscape.
3. Impressive Downtown Visitation Trends
   As detailed in the Q1 2024 Downtown Market Report, attendance continues to improve from low post-pandemic levels with more than 18.6 million visits to Downtown Atlanta. Downtown saw 14 million non-employee visits and 4.6 million employee visits. In Q1 2024, employee visits increased 106% and 52% compared to Q1 2021 and Q1 2022.
4. Reduction of incidents alongside significant security improvements
   In the first quarter of 2024, there were 486 criminal incidents, representing an 11% decrease from the fourth quarter of 2023. Most incidents were non-violent crimes, particularly theft from vehicles, which accounted for 67%. of total incidents. However, installing cameras in high-theft areas resulted in a significant 68% reduction in thefts linked to vehicle incidents.

Ready to know all the facts? Click here to view the Q1 2024 Downtown Market Report.