Q4 2022 Atlanta Industrial Market Report

While demand for industrial space continues to prosper throughout Atlanta, there was a slight slowdown in Atlanta’s industrial market in Q4 2022. Vacancies have risen slightly off of record lows reached in late 2021, ending Q4 2022 with a 30 basis point jump to 4%. While demand and leasing velocity remain strong, rising vacancy and availability should provide relief for new and expanding Atlanta area tenants. The metro’s development pipeline continues to thrive, ending Q4 at 42,942,285 SF under construction, with 26% of that being pre-leased. In 2022, 36.2 MSF of new industrial inventory was added to the market, 62% of which was pre-committed. Industrial capital markets activity slowed in Q4, but exceeded $1.2 billion, a healthy total and on par with the 4-year average. However, buyer and seller pricing expectations are widening due to in part to a less certain interest rate environment. Average cap rates are up 50 basis points year-over-year, but average pricing per SF remains steady at $102 PSF.