Key Metrics and Trends Across Office, Logistics, Residential, Healthcare, and More in Atlanta’s Evolving Real Estate Landscape
Atlanta remains one of the most dynamic and complex real estate markets in the United States. In mid-2025, institutional and private investors are navigating a mix of overbuilt sectors, rising vacancies, resilient retail performance, and long-term plays in healthcare, education, logistics, and housing. With demand shifting and adaptive reuse becoming a viable strategy for distressed office assets, Atlanta is reinventing large swaths of its urban landscape. Damalion highlights the most up-to-date metrics and trends across offices (including conversions), mixed-use developments, commercial assets (hotels included), life science parks, logistics, education, and housing—from student living to senior care.
Office Market: High Vacancy and Adaptive Reuse
Atlanta’s office vacancy hit 32.5% by the end of Q2 2025, the highest level in over a decade. The Buckhead and Downtown submarkets led with vacancy rates exceeding 25%, while suburban Class A buildings saw slightly more stability. Net absorption turned mildly positive at +14,600 sq ft, with Class A space gaining ~359,653 sq ft and Class B losing ~345,092 sq ft.
Despite vacancy challenges, average full-service rents hit an all-time high of $32.62/sq ft—though rent growth is slowing. Developers and owners are responding with adaptive reuse: underutilized office towers are being repositioned into serviced apartments or boutique hotels, especially near Ponce City Market and along the BeltLine corridor.
Mixed-Use & Commercial (Hotels Included)
Atlanta is home to some of the Southeast’s most ambitious mixed-use developments. The $5 billion Centennial Yards project is transforming 50 acres of former railyard into a vibrant urban hub. Phased through 2030, it includes 4 million sq ft of office, 1,000 hotel rooms, over 1,000 residential units, and retail, anchored by Live Nation’s Cosm immersive venue.
Similarly, Ponce City Market continues to outperform as a case study in successful mixed-use redevelopment—blending retail, residential, offices, and public spaces. On the hospitality side, the market spans boutique hotels (Old Fourth Ward, Inman Park) to iconic conversions, with rising investor interest in lifestyle brands within historic structures.
Retail Parks & Shopping Centers
Atlanta’s retail market shows resilience. Vacancy in Q2 2025 stood at 4.4%, slightly up from Q1 but still well below the national average. Leasing activity totaled 1.41 million sq ft, holding steady QoQ. While absorption is slowing, tight new supply is propping up rental rates.
Retail parks anchored by grocery and fitness chains remain attractive. New mixed-retail formats are emerging around West End Mall, which is being transformed into a $450M destination with housing, retail, medical offices, and a 150-room hotel.
Logistics, Light Industrial & Warehouses
The industrial segment is under pressure. Vacancy in metro Atlanta rose to 9.7%, with negative net absorption of –2.6 million sq ft in Q2. This follows a nationwide glut after 1.45 billion sq ft of warehouse deliveries between 2022 and 2024.
However, value investors remain active. In 2025, Brookfield acquired a 53-asset warehouse portfolio across metro Atlanta for $428 million, with a 96% occupancy rate. Their strategy focuses on older, infill locations with under-market rents and steady e-commerce demand.
Average asking rent for industrial space is now $7.06/sq ft, up 2.3% YoY. Despite oversupply, logistics corridors near I-85 and I-20 continue attracting institutional capital.
Residential, Student Housing & Senior Living
Atlanta’s housing market is stabilizing after post-COVID surges. The median home price in April 2025 was $429,000 (+0.1% YoY), while the average price reached $549,000 (+3.6% YoY). Inventory climbed 48% to over 18,600 units, with a months’ supply now at 4.2 months.
Despite tighter lending conditions, multifamily permitting increased slightly, bucking national trends. Vacancy in the apartment market climbed to 12.2%—highest in a decade—particularly in newly delivered luxury units.
Student housing within 30 minutes of Georgia Tech, Georgia State, and Emory University is performing better, with stronger pre-leasing for Fall 2025. Senior living remains a target for REITs and family offices, driven by demographic demand and longer tenancy durations.
Healthcare, Life Sciences & Education Assets
Healthcare-related assets are experiencing strong investor interest. New developments in Midtown and Buckhead are focused on medical office buildings and life science campuses. These cater to the region’s top universities and hospitals, including Emory and the CDC.
Life science parks are gaining ground with support from Georgia Tech’s innovation ecosystem. Institutional buyers are underwriting double-digit IRRs for stabilized healthcare facilities, especially those with long leases to regional health systems.
Education-linked real estate—including charter schools and private educational centers—continues to attract niche private equity interest, often through sale-leaseback models or community investment structures.
Atlanta’s Next Real Estate Cycle is Strategic, Not Speculative
As of mid-2025, Atlanta is not a uniform growth market—it is a tale of two cities. While logistics and office face oversupply, investors are leaning into adaptive reuse, essential services, mixed-use placemaking, and demographics-driven sectors like healthcare and senior housing. Institutions, family offices, and private equity firms are shifting from speculative development to opportunity-led acquisitions and asset conversions.
With its diverse economy, expanding population, and large university base, Atlanta offers multi-asset investment pathways—from core stabilized income to value-add repositioning and sector-specific plays.
Damalion supports American and international investors wishing to structure their investments in the US. Please contact your Damalion expert now.
10 Best Business Hotels in Atlanta
- Four Seasons Hotel Atlanta
- The St. Regis Atlanta
- The Whitley, a Luxury Collection Hotel, Atlanta Buckhead
- The Ritz-Carlton, Atlanta
- Hyatt Regency Atlanta
- The Starling Atlanta Midtown, Curio Collection by Hilton
- voco The Darwin Atlanta, an IHG Hotel
- Grand Hyatt Atlanta in Buckhead
- Kimpton Overland Hotel – Atlanta Airport
- Atlanta Marriott Marquis
10 Best Restaurants in Atlanta for Business Dining
- Atlas Buckhead – Michelin-starred fine dining inside The St. Regis
- Staplehouse – Award-winning tasting menu and philanthropic model
- STK Atlanta – Modern steakhouse with sleek business ambiance
- Ecco Midtown – Stylish European cuisine for working meals
- Lure Atlanta – Elegant seafood in Midtown for client lunches or dinners
- The Chastain – New American with a Michelin green star and serene patio
- Two Urban Licks – Industrial vibe, wood-fired cuisine, and skyline views
- Antico Pizza Napoletana – Iconic pizza spot near Georgia Tech
- Tio Lucho’s – Coastal Peruvian dishes in a welcoming setting
- The Consulate – Rotating global menu with curated elegance.
