Southeast’s Office Market Recovers Faster Than Other Regions, Atlanta Sees Return-to-Office Mandates and Leasing Activity Increase

The office market in major cities has been struggling to recover from the impact of remote work and economic uncertainty brought on by the COVID-19 pandemic. However, there are signs of hope in the Southeast, particularly in cities like Atlanta.

Companies with large employee bases in Atlanta, such as UPS, Truist, and NCR Voyix, have recently announced return-to-office mandates, requiring workers to be in the physical office five days a week. This shift towards more in-person work has also led to an increase in leasing activity, with over 2.2 million square feet of office leases signed in the Atlanta area in the first quarter of this year.

One company that is seeing success in the Atlanta office market is Cousins, which reported a 57% increase in office lease signings compared to the same time last year. A significant portion of these leases were expansions, including system software firm Workday doubling its office footprint in Buckhead.

However, Cousins is also facing challenges, particularly with co-working company WeWork’s pending Chapter 11 bankruptcy proceedings. Cousins currently houses four WeWork locations in Atlanta and Charlotte, and has already agreed to modify one lease by reducing its footprint. Despite this, Cousins is prepared for the possibility that WeWork may reject its lease at a prime location along the Beltline’s Eastside Trail near Ponce City Market.

Overall, Cousins reported a net income of $13.3 million in the first quarter, a slight decrease from the previous year. Despite some challenges, the company remains optimistic about the future of the Atlanta office market and its ability to attract and retain top talent in the region.