The Atlanta industrial market has proven resilient in the first quarter of 2023. Low vacancy has continued to be a theme as the metro-wide rate hovers right around 4.1%, but this figure has increased by roughly 50 basis points from the end of 2022. Despite modest increases in the vacancy rate, rental rates are continuing to rise as inflation persists and money has become more expensive in the debt markets. While mentioning the capital markets, it is worth noting that cap rates have risen to about 6% across the metro as the cost of debt has diminished investors’ buying power, and operating income has re-emerged as a leading value driver in sales transactions. The opportunity for occupiers lies in the 31.6 million square feet of industrial space currently under construction coupled with the aforementioned upward trend in vacancy rates. Present day, fewer industrial speculative projects are breaking ground as developers have hit pause due to interest rate hikes. This will keep the Atlanta vacancy rates relatively low and existing, in-fill product will continue to lease at a premium.