In general, for an executive office suite/shared office space operator such as Peachtree Offices, the market has completely rebounded from COVID. However, the atlanta office space market for executive suites/shared office space has not grown much from 2019 levels. As an executive suite and shared space operator, our target client is between 90SF to 500SF on a one-year term. However, we do have a few clients in the 1000SF and 2000SF range on two or less-year terms. The traditional commercial real estate landlords are still not interested in tenants of this size or terms under three years. However, there are some differences in the office market from 2019 to 2022. The table below summarizes these differences.
Atlanta Office Market Comparison | 2019 vs. 2022
|Office Market Dynamic||2019||2022|
|Building Owners Target Market||10,000SF Tenants with 5 Plus Year Terms.||3,000SF Tenants with 3 Plus Year Terms.|
|Building Owners Goal||Sell the building at a profit.||Try to stay as full as possible given the loss from large companies downsizing & hope to sell the building at some point in the future.|
|Building Owners Risk Tolerance for Large Capital Expenditures||High||Low|
|Building Owners Willingness to Work with Tenants to Retain Them.||Low||High|
|Availability of Commercial Office Space Directly from the Landlord (3000SF Plus).||Tight Market with Few Options.||Overbuilt. The supply exceeds the demand.|
|Availability of Shared Office Space and Executive Suite Options for Tenants.||Overbuilt. The supply exceeds the demand.||Overbuilt. The supply exceeds the demand.|
Factors Changing the Office Space Market Dynamics in Atlanta
Changes in the Atlanta office market dynamic from 2019 to 2022 were mainly driven by larger companies downsizing or giving up office space altogether. For many companies, COVID proved that remote work is possible and that either no office space or a hybrid combination of work from home and office time was possible. During COVID, Peachtree Offices lost many clients, but as other companies downsized from commercial office space, our loss was offset by a different mix of clients coming in. The net change was minimal. We would have likely seen growth but the number of shared office space competitors that entered the Atlanta market proliferated from 2012 to 2019.
How Peachtree Offices Navigates the Always Changing Office Market
Peachtree Offices is an OfficeFinder Member and a family run locally owned Atlanta Company with 35 years of experience. We came through COVID unscathed with a commonsense approach to business. Our focus is providing great customer service, flexibility, affordable pricing, a peaceful environment, and ready-to-go office space that our clients are proud to meet their clients in. We are not funded by venture capital and survive and thrive by doing what makes sense and treating our clients the way we would want to be treated.