According to a recent CBRE survey, Atlanta experienced a record-breaking quarter with over 13 million square feet of industrial space added. However, the majority of this new inventory remains unoccupied, resulting in an increase in vacancy rates to 5.8%. This is the highest vacancy rate seen since Q4 of 2020.
While demand has cooled down from pandemic highs, leasing activity and net absorption have decreased by 78% and 62%, respectively compared to last year’s numbers.
Despite these decreases, there has been a positive trend in average NNN lease rates for Atlanta’s industrial market. In fact, it increased by 1.7% quarter-over-quarter due to continued demand and the addition of modern product.
The latest report on Atlanta’s industrial activity shows mixed results as supply continues to outpace demand.
