Office Leasing in 2024: Why It’s Still a Tenant’s Market in Atlanta
Overview
Headlines surrounding the office market have been largely apocalyptic, but from a tenant’s perspective, the reality on the ground looks very different. Having worked exclusively as a tenant representative since 2013, I see today’s environment as one of the most favorable office leasing markets tenants have experienced in decades—especially for those with near-term office needs.
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Return to Office in 2025: What RTO Mandates Mean for Office Demand
Work-from-home has permanently changed how much space companies require, but it has also created significant leverage for tenants willing to understand how the market is actually functioning.
How Work-From-Home Has Reshaped Office Demand
Work-from-home is the single biggest structural shift impacting office demand, and it is here to stay. In Metro Atlanta today, the average company is taking approximately 32% less space than it did pre-pandemic. As a result, many tenants are rethinking not just how much space they need, but where that space should be located.
Rather than settling for commodity offices, many companies are gravitating toward newer, more amenity-rich buildings. While these are often labeled “Class A,” that definition has become increasingly diluted. In reality, a smaller subset of buildings—what many would now consider trophy or Class AA—are capturing a disproportionate share of tenant interest.
Market Reality: A Deeply Bifurcated Office Market
The Atlanta office market today is not uniform. In my view, roughly:
80% of buildings are effectively insolvent
10% require new capital
10% have strong balance sheets and consistent demand
Owners of top-tier buildings continue to attract well-capitalized tenants who are competing for talent and prioritizing workplace quality. For these companies, occupancy costs are often immaterial relative to overall operating budgets.
Outside of that small segment, however, landlords are under significant pressure—and tenants feel it directly in negotiations.
How Tenant Leverage Is Showing Up in Office Lease Negotiations
Despite market uncertainty, transactions are getting done. Tenants are simply leasing less space at substantially lower effective rates.
In recent lease renewals, we secured:
Nearly three years of free rent for a long-term client willing to sign a 7+ year lease and self-fund construction
Three-year leases with one year of free rent, taken on an as-is basis
Aggressive concessions from capital-constrained landlords who needed occupancy more than price certainty
In some cases, lenders on underwater properties have even funded leases directly, bypassing ownership entirely. These dynamics underscore just how tenant-favorable today’s environment remains.
What Office Tenants Should Be Thinking About in 2024
With the office market undergoing a fundamental transformation, many tenants are using this moment to right-size for a digital-first world. Flexibility, financial stability of ownership, and long-term optionality matter more than ever.
Now is the time for tenants to be deliberate—but also aggressive. Market conditions still favor those willing to push for concessions, especially when lease timing aligns with owner pressure.
The takeaway is simple: this remains a tenant’s market, and meaningful savings are still achievable for companies willing to engage strategically.
Written by:
Graham Perry
Senior Director specializing in tenant representation, office leasing strategy, and healthcare real estate transactions.
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