Atlanta Industrial Market
Despite four straight quarters of rising vacancies, the market here is still tighter than any time before 2021, and Atlanta remains among the top six markets for net absorption. The market has downshifted slightly, but the shift appears to be more normalization than downturn. Vacancy and absorption have both returned to more typical levels, while groundbreakings slowed even though much of leasing demand was for new inventory.
Well-located assets still command significant rent increases, though Atlanta remains one of the country’s least expensive major industrial markets. Connections to the nearby ports, combined with geographic location along the I-85 corridor, position Atlanta as a distribution hub. Additionally, vehicle manufacturing growth will continue to drive demand for industrial space.