Atlanta Industrial Market

Atlanta’s vacancy rate drifted higher through the first half of 2023 after reaching record lows in 2022. However, at 4.6%, it remains far below the market’s 10-year average of 6.2%. A combination of slower leasing activity and a pickup in new deliveries drove the increase. The trailing 12-month leasing total for Atlanta fell to 34.6 million SF as of May 2023 from peaks above 50 million SF the year prior. Still, total leasing velocity remains above pre-pandemic trends. By comparison, annual leasing activity averaged 32.4 million SF between 2016 and 2019.

 Connections to the growing ports of Savannah, Charleston, and Jacksonville, combined with a geographic location along the growing Interstate 85 corridor, position Atlanta as a distribution hub for both major Southern and lower Midwestern population centers. Recent major leases and move-ins from Sam’s West, Home Depot, UPS, and Dollar General solidify that position. Population growth in the broader Southeast region has bolstered aggregate spending in the market.


Atlanta Office Market