Although there is a sustained demand for industrial space in Atlanta, the market activity during Q1 2023 has shown a deceleration. Vacancies have risen slightly off of record lows, ending Q1 with a 50-basis point jump to 4.5%. Overall net absorption fell, with just under 2 million SF newly occupied. While activity cooled in Q1, the rise in sublease space during the Fall of 2022 has subsided and overall availability levels have stabilized. Despite Atlanta’s development pipeline remaining high at 35.6 MSF under construction, only three new projects were initiated during the quarter. First quarter deliveries totaled 8.8 MSF, with more than 43% of the space leased at time of delivery.