In Q2, the Atlanta industrial vacancy rate slightly increased to 7.9% from 7.3% in the previous quarter of 2024, due to more deliveries and moderate leasing demand. The market’s net absorption remained steady with a YTD absorption of 6.2 million square feet and a quarterly net absorption of 3.0 million square feet.

7.9 million square feet of new inventory was delivered in Q2, increasing Atlanta’s total inventory to 829 million square feet. The development pipeline has slowed down from 19.3 million square feet, with 15.7 million square feet currently under construction. The average rental rate slightly increased from $7.79 psf in Q1 to $7.87 psf in Q2.

Now new Atlanta development starts are at their lowest levels since 2016, and the city has experienced a recent solid uptick in leasing activity. With interest rates at a 15-year high combined with a challenging land entitlement environment, Atlanta will continue to experience rental rate growth in the medium – long term and vacancy rates trending lower.

​