Key Takeaways

  • Atlanta continued to post strong occupancy gains this year with the third quarter absorbing another 4 million square feet of industrial space.
  • The Northeast Atlanta submarket overtook South Atlanta as the top-performing industrial submarket this quarter with 1.8 million square feet of space absorbed. South Atlanta continues to have the highest year-to-date total at 9.7 million square feet; accounting for 57% of total absorption this year.
  • Overall industrial vacancy rose slightly quarter-over-quarter. The increase is attributable solely to deliveries outpacing absorption.
  • Following three consecutive quarters with little to no movement, this quarter’s average quoted rental rate declined 0.5% from Q2. This confirms Atlanta’s industrial rents have peaked for this cycle.
  • The Atlanta industrial market is on track to exceed 2014’s record net absorption of 22.6 million square feet.