10 Predictions for the Cobb County Office Market in 2025

 Let’s unpack what 2025 will have for the Office Market in Cobb County. Here are 10 predictions.

1.        Rental Rates Remain Steady

I expect that rental rates will remain steady across the board with two notable outliers. First, we may see a building or two drop rates in a race to the bottom but these buildings will either be “Zombie” buildings or from new owners with a very low basis. Second, we will see rates slightly increase in two of our submarkets- The Battery and Galleria – as supply becomes more limited.

2.        Reduced Concessions

We are already seeing this in the market. Tenant Improvement Allowances and other concessions or incentives from landlords are decreasing. The two factors behind this are increased tenant demand and landlords continuing to provide “spec suites” which are ready for immediate occupancy.

3.        Foreclosures in the News

Due to capital markets and the continued softness in the Class B and Class C markets, there will be articles hitting the press about foreclosures. The details matter. Some of these buildings are unleasable and will be redeveloped and removed from inventory. Other buildings will benefit from new ownership with a reset cost basis in the building and a fresh perspective on leasing.

4.        Zombie Buildings

As alluded to above, there are buildings that have simply reached their functional useful life. These buildings aren’t attractive in the space market and are candidates for redevelopment – notably multi-family. 

5.        Giving back space on Renewals

For companies with a very large footprint, expect to see them to sign new leases at reduced square footages.

6.        Impending Supply Crunch

Companies that want to reduce space should look to do a blend and extend where they sign longer term leases at today’s rental rate and concession package. The reason is we aren’t expected to have meaningful delivery of office space until 2030! These projects take years to design, plan and build. With limited supply in the pipeline, expect a supply crunch to hit the market in 2026 or 2027. Smart Occupiers will put together deals to blend and extend and get ahead of the curve.

7.        Location will matter

Location will be a larger factor than price for many users. The C Suite needs to get people in the office. Smart executives will match both commutes and amenities when searching for space.

8.        Culture Matters

The Silver Tsunami is upon us and companies need to train up the next generation. Executives will look to ensure office space has room for collaboration and learning between generations.

9.        Trends Pulled from Hospitality

Design trends for office buildings, both the lobby and the suites, will pull from the hospitality sector. Spaces will be designed to draw people in.

10.  Spec Suites see strong leasing

Spec Suites have been all the rage lately and that trend will continue. Landlords willing to invest in buildouts will be rewarded.  

We lease office space in Atlanta and Cobb County. If we can help your company grow through strategic real estate strategies, please reach out here.