Limited available industrial space drives rent growth in Atlanta

– The southeast is experiencing an increase in rental rates as demand remains high for industrial space. Looking at the last three years, rates in the Atlanta market have increased 79%.

– Despite the steady increase of available space listed on the market due to new product deliveries, space is still considered as limited for many tenants and their specific needs. This is keeping landlords in the driver's seat causing rates for both new leases as well as renewals to continue to escalate especially in specific submarkets such as North Central, Central Atlanta, and Chattahoochee where recent comps show NNN rates above $10.00 PSF.

– At the end of 2023, 7% of industrial space was vacant out of the 750 MSF of inventory in the market. Although vacancy is up 79% YOY, leasing activity remains strong, and Atlanta will likely continue to boast competitive rates within the southeast.