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Category: Industrial, Report Tags: Atlanta, Colton Macon, Harrison Auerbach, Thomas Wilkinson

Atlanta, GA Industrial Market Report

Market Overview

While Atlanta remains among the top six markets for net absorption, the industrial market has downshifted slightly in 2023. However, concerns are low as a near-record 31.8 million square feet are currently under construction. Atlanta’s year-over-year rent growth is still outpacing the national average, but it is beginning to level out as landlords find themselves with more available space to fill. Largely due to portfolio deals, sales volume has remained high at $5.2B over the past 12 months, well above the historical average of $1.4B.



  • The 12-month rent growth remains high at 11.7 percent, exceeding the historical average of 2.8 percent.
  • Atlanta’s industrial rents are low compared to the rest of the country, making it one of the least expensive industrial markets.
  • Even with the rising interest rates, sales volume in Atlanta will stay steady through 2023 as new and well-leased assets continue to attract institutional funds.


Rent | Construction | Vacancy

Atlanta’s rent growth continues to outperform the metro’s historical average, however, record levels are beginning to decrease. The average asking rent of $8.50 per square foot is well below the national average of about $11.40 per square foot. Atlanta continues to be a market that appeals to manufacturers and distributors looking to expand in the region. Atlanta ranks in the top five for industrial supply underway nationally. Currently, there are roughly 31.8 million square feet under construction, accounting for 3.9 percent of total inventory. The new developments in Atlanta are growing in total footprint and height. Projects are clearing heights of 40 feet. In comparison, projects built before 2010 rarely exceeded 32 feet. The average size of a property is larger than 200,000 square feet. Atlanta continues to be a popular market for industrial investments, reflected through the vacancy change year-over-year of 0.4 percent.



Often ranked among the nation’s leaders in total deal volume, Atlanta closed $5.2 billion worth of assets in the past twelve months. Out-of-state firms accounted for 80 percent of the metro’s buyer volume over the past twelve months. A large portion of these deals were portfolios involving firms such as Blackstone, Prologis, and Clarion Partners. The average cap rate for the market sits at 6.2 percent and is predicted to continue stabilizing in the coming quarters.


By the Numbers: Atlanta Industrial Market Snapshot

  • Vacancy Change (YOY): 0.4%
  • Net Absorption SF: 16.5M
  • Deliveries SF: 21.3M
  • Rent Growth: 11.7%
  • Sales Volume: $5.1B

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