Atlanta commercial real estate has been shrouded in turbulence and uncertainty as of late, but investors are beginning to regain confidence in the slowly recovering market. This confidence primarily stems from potential showing in two major areas: gateway markets and Sun Belt markets. With Atlanta’s label as “the capital of the Southeast,” it fits well within these two promising realms, making it the fourth most attractive US market to invest in, according to CBRE’s 2025 Investor Intentions Survey. Commercial real estate within the Sunbelt is booming due to lower costs and warm weather, while gateway markets are defined as stable metropolitan areas with strong economies and large populations. With Atlanta sitting at the intersection of these two markets, optimism is in the air.
What’s the Outlook?
Around 70% of investors intend to expand their holdings this year, motivated by what they see as favorable pricing and improving fundamental conditions within the real estate sector. While they have less confidence in the overall market outlook, many have foreseen an uptick in their own investment activity. Investors are particularly drawn to value-add and core-plus opportunities, a strategic approach that suggests a pursuit of higher returns, balanced by a careful management of risk. Many are looking to gain a first-mover advantage by investing in undervalued assets that are expected to appreciate as the market continues to recover. By getting in early during the “reset,” they aim to maximize their returns when the recovery takes hold and prices climb back up. Confident investors believe their proactiveness during the downturn will position them to reap the greatest rewards when the market rebounds.
The Potential of Multifamily Assets
Market index scores for multifamily properties from late 2022 through early this year continue to support a positive investor outlook for this sector. According to the Federal Reserve Bank of Atlanta, multifamily assets have generally remained in positive territory (above zero) over the past year and a half, and while there has been some fluctuation, median scores have been on the rise, meeting the long-term average for the first time since the end of Q4 in 2022. This suggests that the sector is still performing well, despite some sluggishness compared to post-pandemic highs. With a more positive outlook than many other markets, investors have mainly been prioritizing multifamily assets, having high confidence in this sector’s long-term viability and return potential.
The foundational need for housing ensures multifamily’s continued appeal as a stable and resilient investment, consistently drawing significant capital. However, the sector has cooled from its recent peak, with its performance often trending below its long-term average. This reflects a widespread return to more normalized market conditions, moving away from the booming growth experienced just a few years ago.
Office Assets Still Facing Headwinds
The landscape for office properties, from post-pandemic peaks into early 2025, has consistently been characterized by challenges. Median market index scores for office assets have remained firmly in negative territory, persistently sitting below the long-term average. While there are occasional bright spots, the overall pattern points to fragility and a market struggling to regain momentum. Despite this clear visual evidence of sustained weakness, the recent investor survey highlights an intriguing divergence: a greater proportion of investors are now considering office assets compared to last year. This likely indicates a strategic pursuit of properties at significantly adjusted valuations, or a concentrated focus on exceptionally high-quality, resilient office spaces that are believed to be better positioned for future demand. While there has been a slight uptick, with office assets earning a median Commercial Real Estate Index (CREMI) of -0.81 in 2025, versus -1.06 at the end of last year, the resilience and adaptability of the office sector will undoubtedly be tested in the coming quarters.
Turning Market Insights into Opportunities
The commercial real estate landscape, as we’ve seen, is a fascinating blend of investor optimism, shifting market preferences, and varied performance across asset types. Navigating these trends, from the favored multifamily sector to the evolving office market dynamics, demands deep market understanding and foresight. This is precisely where EpiCity Real Estate Services stands out. Whether you’re seeking to capitalize on robust multifamily demand or identify strategic opportunities in more challenging sectors, our team offers the guidance and precise market knowledge needed to make informed investment decisions and optimize your portfolio. Connect with us to leverage our expertise and chart a successful course for your commercial real estate ventures.