Atlanta industrial real estate market reports

The Atlanta industrial market had a slower start to 2025, though market fundamentals remain intact. Despite shifting economic dynamics, the market still saw just under 10 msf leased, with smaller deals carrying the load. Investment sales volume remained steady, as $/SF pricing continues to rise. Direct vacancy did increase since 2024, though large-block move-ins scheduled for the remainder of the year are expected to temper growth of the vacancy ratAtlanta’s industrial market saw 2.0 msf of positive net absorption in Q3 after posting its first quarter of negative absorption since 2012 in Q2, an encouraging sign that occupiers are re-engaging as economic clarity improves. While vacancy ticked up to a new high, this was driven largely by the delivery of 3.9 msf of new speculative space, underscoring developers’ confidence in the market rather than a decline in tenant demand. Class A big-box occupiers were the core catalyst to this quarter’s absorption gains, affirming their role as a stabilizing force in Atlanta’s industrial landscape. Average asking rents rose to $7.29 psf, but the pace of growth continues to moderate following several years of rapid escalation. This signals a shift toward pricing stability, offering tenants more predictability as the market recalibrates heading into year-end.