Industrial leasing volume has surged in Atlanta over the past few quarters. Third-party logistics firms and e-commerce fulfillment providers account for many new deals. The metro area benefits from its role as a regional and national distribution hub, the growing Port of Savannah, and its strong local demographic trends.
Developers have responded to the strong demand for industrial space here as groundbreakings have ramped up in recent quarters. However, even as the metro’s speculative pipeline continues to increase, vacancies have trended downward due to impressive net absorption. As a result, Atlanta’s vacancy rate should remain relatively flat through 2022. Rent growth is outperforming the national benchmark, though Atlanta remains one of the least expensive industrial markets in the country.