Small-Bay, Big Impact: Atlanta’s industrial underdog leads the market

– The Atlanta industrial market is a tale of two markets, with small-bay industrial space clearly outperforming the larger size segments. Vacancy for industrial product in the 20,000-50,000 SF range sits at just 5.6%, well below the overall market average of 9.2%.

– Fueled by a frenzy of demand, average asking rents for small-bay industrial space have risen 4% year-over-year, outpacing rent growth in larger building sizes. In contrast, rents in all other size segments have either stagnated or declined in the same time period.

– While economies of scale favor larger developments, this has limited new supply of small-bay space. The ongoing disconnect between supply and demand is expected to sustain a competitive advantage for these smaller properties through the remainder of 2025.