Atlanta Industrial Sector Showing Strength

Avison Young’s Q3 2024 Atlanta industrial market report was recently released. Here are some of the highlights:

• Leasing activity increased by 17.5% year-over-year to 9.4 million square feet in Q3, the highest it has been since 2022.
• Q3 2024 saw the highest amount of square footage leased than any quarter since Q4 2022. 
• The increase in activity has also powered an 80% increase in absorption since last quarter. 

• Groundbreakings for new construction projects are down over 80% compared to the peak of development in 2021.
• 27 buildings, totaling 7.7 million square feet, broke ground in 2024, compared to 125 buildings, totaling 40.3 million square feet, that broke ground in 2021.
• With vacancy rates continuing to rise, slowing the development pipeline should improve the overall health of the Atlanta industrial market.
• Leases less than 50,000 square feet accounted for 54% of deals signed during Q3 2024.