Atlanta’s office tenants are seeking shorter lease terms, let’s break it down by industry

– When looking at Atlanta’s most active office tenants by industry, each industry is currently committing to shorter lease terms on average when comparing deals signed in 2019.

– Tenants within the engineering, architecture, construction & building materials industry have decreased their terms on average by over 37%, while media, PR, telecom & entertainment show a slight decrease in average lease term at 0.57%. Both media, PR, telecom & entertainment as well as the tech industry appear to be the most consistent tenants when looking at terms as well as amount of square feet they commit to with little change over the last 5 years.

– Lease terms were heavily impacted by COVID and the work from home options that were adopted during and after the pandemic, but now companies are less inclined to commit to longer terms due to the state of the market. Companies are now finding security in occupying less space for shorter durations to maintain a sense of control and allow more negotiating opportunities to ensure they benefit from the best deal.