Healthcare providers face increased financial challenges, staffing shortages, and inflationary pressures. However, the Atlanta’s medical office market has remained steady with assets remaining well leased. The continued demand has contributed to a 5% jump in rental rates versus 2022. Second Quarter had 107,000 SF of new deals with North Fulton contributing the largest percentage.

There is some rising vacancy in the short term as several new buildings are opening and more under construction.

Healthcare investment activity has remained robust in 2023 with investors attracted to strong occupier demand, and long lease terms.