Atlanta remains one of the country’s most dynamic and resilient economies, driven by strong population growth and corporate investment. The region added about 75,100 new residents between 2023 and 2024, which aided employment to outperform the national rate. Employers are drawn to innovation hubs like Midtown and Tech Square, which noted move-ins by Cargill, Google, and Cisco. Healthcare is also growing, led by investments from Emory and Children’s Healthcare of Atlanta.

 

Atlanta Demographics

Source: CoStar Group, Inc.

• Unemployment Rate: 3.5%
• Current Population: 6,444,306
• Households: 2,411,462
• Median Household Income: $92,735

 

Population, Labor, and Income Growth

Source: CoStar Group, Inc.

 

Key Findings

• The metro’s industrial sector is transitioning from a period of record-breaking activity, but elevated supply continues to pressure demand and rents.
• There is 14 million square feet under construction, driven mostly by major data center projects from QTS, Microsoft, and Meta.
• While sales activity has softened, transactions remain about 50% above pre-pandemic levels, aided by institutional and user-driven deals.

 

Market Performance

Industrial activity across Atlanta has entered a period of recalibration after years of rapid expansion. The vacancy rate rose to 8.5% in Q3 2025, well above the 10-year average of 5.8%, as new deliveries continue to outpace absorption. Demand has softened, with several third-party logistics and housing-related firms giving back space amid elevated interest rates.

 

Availability is especially high in submarkets like Kennesaw/Acworth, where over 15 large facilities have been added since 2023. Rent growth has slowed to 1.8% annually, down from a long-term average near 8%, though well-located properties near the airport and along I-75 still see strong pricing. With construction starts down sharply, tighter vacancies and renewed rent growth are expected by year-end 2025.

 

Atlanta Industrial Supply & Demand Dynamics

Source: CoStar Group, Inc.

 

Atlanta Construction

Industrial construction in Atlanta has moved beyond its peak, with deliveries slowing sharply. There was 14 million square feet of space underway in Q3 2025, the lowest construction level noted for the metro this year. Developers have scaled back speculative building in response to higher financing costs and weaker absorption, leading to a 20% annual decline in new projects. Still, with the 14 million square feet under construction, Atlanta remains among the top ten U.S. markets for new industrial supply. Much of this activity is concentrated in large data center developments by QTS, Microsoft, and Meta, which are reshaping the region’s industrial landscape and future growth.

 

SF Construction Starts

Source: CoStar Group, Inc.

 

SF Under Construction

Source: CoStar Group, Inc.

 

Sales

The metro’s industrial investment activity has slowed but remains above long-term averages. Total sales volume reached roughly $1.6 billion in Q3 2025, about 30% lower than the same period in 2024. Elevated vacancies and slower rent growth have made underwriting more conservative, limiting aggressive pricing. Institutional buyers like EQT Exeter REIT and Ares Management remain active, while Georgia Power’s $94.8 million acquisition of the River Park E-Commerce Center highlighted increased user-driven purchases. Data centers continue to attract strong investor interest, particularly in North Fulton and Airport/North Clayton, positioning Atlanta for renewed transaction momentum once capital markets stabilize.

 

Sales Volume

Source: CoStar Group, Inc.