ATLANTA—The Atlanta metro area's office market witnessed a significant improvement over modest gains achieved in the previous quarter, posting 537,708 square feet of direct net absorption during the second quarter. That's according to PMRG's second quarter office report.

During the second quarter, class A office product recorded occupancy gains totaling 362,072 square feet, a significant increase from the previous quarter's negative absorption. Class A direct office occupancy witnessed a decline for the second quarter in a row, sliding by 80 basis points to 85.3%. However, PMRG reports, quarterly decline in class A direct office occupancy levels largely resulted from new supply outstripping demand with nearly 1.3 million square feet of office space coming online.

By contrast, class B direct office occupancy continued its positive climb with an increase of 70 basis points during the quarter to settle at 83.2%, exactly 70 basis points higher than its mid-year 2016 mark. And asking rental rates continued to rise as new deliveries coupled with strong leasing demand for quality office space helped push rents to new highs during the quarter.