Current demand for flexible workspace is much greater in the suburbs of Atlanta than it is in the city, according to a new analysis of flexible workspace rates, supply, and demand in the city versus its outskirts by The Instant Group.
The Instant Group, which is the largest global marketplace for flexible workspace solutions, analyzed the suburbs of Alpharetta, Cumberland, and Sandy Springs, and compared those areas to the city of Atlanta.
Demand – City vs. Suburbs
While demand in the city dropped 25 percent in 2022 over 2021, it was higher (7 percent increase in 2022 vs. 2019) than when compared to pre-pandemic. In the outskirts of Atlanta, demand was up 23 percent in 2022 when compared to pre-pandemic 2019.
Small space requirements comprise 77 percent of total demand across Atlanta in 2022. However, since the pandemic, mid-size requirements have increased, up 63 percent in 2022 when compared to 2019.
Demand was up slightly, one percent, in 2022 over 2021, but markedly different from the city’s year-over-year drop. Demand was also up 23 percent in 2022 when compared to pre-pandemic 2019.
There has been strong demand for 10-25 desks in 2022 when compared to 2021. At the same time, demand for smaller requirements, 1-2 desks, decreased by 6 percent in 2022 when compared to 2021.
Rates – City vs. Suburbs
The monthly cost-per-desk for a flexible workstation in Atlanta dropped 10 percent in 2022 over 2021 ($487 vs. $540).
Unlike in the city, the monthly cost-per-desk for flexible workspace in the outskirts of Atlanta has increased by 3 percent in 2022 when compared to 2021 ($434 vs. $422). In 2023 to date, rates have taken a slight dip, dropping to $428.
Supply – City vs. Suburbs
Supply has grown three percent between 2021 and 2022, and the majority of supply is hybrid workspace, representing 63 percent of total supply, while 30 percent is serviced offices and seven percent is co-working.
Despite flat supply growth over the past 12-months, the supply of flex is still up by 11 percent in 2022 when compared to pre-pandemic. Similar to the city, the majority of space (62 percent) is hybrid workspace, followed by serviced offices (29 percent). Just 10 percent is coworking space.
“Within the city, Downtown, Buckhead, and Midtown remain top search locations; however, we are finding small and large companies alike seek space in local suburbs outside the perimeter to provide better commuting options for their employees,” said Hailey Barnett, account manager, digital solutions, The Instant Group.
“While smaller suites still dominate the Atlanta market, there has been increased demand in flex from tech and legal clients, and corporates seeing suites to accommodate 20 or more employees as firms either expand and stay in flex or look to incorporate in the U.S. and make Atlanta their headquarters,” added Barnett.
The included data is compiled via The Instant Group’s leading flexible workspace data platform, Instant Insight. Rate data is based on transacted rates, providing the most accurate view available within the industry, while demand data is based on demand coming through The Instant Group’s digital booking platform, Instant Offices. Percentage change is based on relative change.