After several consecutive quarters of increases, sublease availability in Atlanta’s office market dipped in the final three months of 2023. 

The total availability was 8 million square feet, down by 5% from the third quarter, according to data from Jones Lang LaSalle (JLL). The decrease was the first in five quarters. 

This is an isolated data point, which means few conclusions can be drawn until another decrease — or multiple, really — follows. But it could be a pacesetter for what’s to come in 2024, as interest rates stabilize and companies continue to refine their space requirements.

“It’s a hopeful signal that the market is slowly returning to normal,” said Jeff Heller, a managing director with JLL. “And when I mean normal, I mean a standard level of activity and standard level of sublease versus direct-space availability.”

Atlanta has gone four months without seeing a large block of sublease space — around 40,000 square feet, or around a full floor — hitting the market. In December, there were seven subleases added to the market, none greater than 4,000 square feet, according to JLL.

Atlanta Business Chronicle