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Category: Industrial, Report Tags: Atlanta, market report

Atlanta Industrial Market Report

Market Overview

Atlanta’s job market has rebounded, with total jobs in the area exceeding pre-pandemic levels by 5%. Atlanta remains attractive for corporate relocations, with major companies like Microsoft, Google, and Cisco establishing offices in the area. Healthcare and manufacturing sectors are also expanding, with investments in new facilities and electric vehicle manufacturing contributing to job growth. Atlanta’s lower living and business costs, along with its transportation and logistics infrastructure, continue to attract residents and corporations, positioning the city for continued population and job growth. Well-located assets in certain areas, such as around the airport and along I-75 in Henry County, continue to command significant rent increases in the industrial sector. The decline in construction starts in the industrial sector could help stabilize market fundamentals and pave the way for a return to tighter vacancies and accelerated rent growth in the industrial market by 2025-2026.


Market Performance

After experiencing record-high rent growth in recent years, Atlanta’s industrial rent increases have slowed to 7.7% but remain consistent with the 10-year average of 7.4%. Atlanta’s average industrial asking rent remains relatively affordable at around $9.20 per square foot, although it has increased by approximately 46% since early 2020. Atlanta ranks among the top 10 markets nationally for industrial supply underway, boasting approximately 16.7 million square feet currently under construction, a record high for the city. The vacancy rate stands at 6.6%. As fewer projects break ground, the number of new projects delivered each quarter is anticipated to decline to levels last seen in 2015. Consequently, this reduction in construction activity could lead to a tightening of the vacancy rate in 2025, signifying a potential shift in Atlanta’s industrial real estate landscape.


Atlanta ranks among the top five U.S. markets for industrial investment. Investors have completed $3 billion in transactions over the past year. This slight decline is attributed to smaller deal sizes and a reduced number of transactions over $10 million, indicating lower selling prices compared to asking prices. Despite the challenging market conditions, institutional investors and owner-users, particularly those with patient investment strategies, continue to show interest in well-leased assets in Atlanta.


Smaller properties under 50,000 SF, particularly those closer to population centers and the airport, are commanding higher rents around $11.25 per square foot.


Atlanta by the Numbers | Source: CoStar Group

  • Vacancy rate: 6.6%
  • Rent growth: 7.7%
  • Deliveries (SF): 27.4M
  • Absorption (SF): 5.5M
  • Sales volume: $3.2B

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