Industrial continues to surge, with logistics space dominating the market. The metro benefits from its role as a national distribution hub, the growing Port of Savannah, and from strong local demographic growth. Vacancies have begun to tick up in recent quarters but are still well below the metro’s historical average. Sustained low vacancies have kept pricing power in the favor of owners, and rent growth continues to outperform the national benchmark.
However, with one of the largest speculative supply pipelines in the nation, vacancies in Atlanta are likely to rise in the near term. Submarkets south of Atlanta are likely to take the biggest hit. Investors continue to flock to Atlanta industrial, with the market setting a new record for sales volume each of the past two years. Pricing continues to appreciate, with average sales now coming in over $60/SF.
Atlanta remains one of the healthiest major markets in the country in terms of rent growth, and it is outperforming metros like Dallas-Fort Worth ($75/SF) and Chicago ($70/SF). However, metro-wide rents are roughly 25% above the pre-recession peak, which is below the national average mark.