Atlanta's industrial market has slowed, with rising vacancy rates and subdued absorption. Despite positive net absorption in 23Q1, it was significantly below pre-pandemic averages.
Over the past seven quarters, vacancy rates have steadily risen above the 10-year average and have exceeded the national average by the end of 2023, with increases varying across property sizes.
Structural shortages persist in small-bay space, while adaptive reuse projects are on the rise. Big box spaces, especially in the Kennesaw/Acworth Submarket, struggle to fill vacancies. Rent growth has slowed, but a decline in construction starts may lead to tighter vacancies and rent growth in 2025-26. Despite challenges, opportunities for market recover are anticipated as the industry adjusts to changing dynamics.