What's Happening?

Atlanta’s industrial market saw vacancy rise to 9.5% in Q2, driven by major tenant move-outs, delayed move-ins, and a continued increase in sublease availability. The move-outs pushed net absorption into negative territory for the first time in two years. Despite this, leasing activity remained solid—particularly among renewals—as many tenants who signed in 2020 opted to stay, demonstrating confidence in the market. The renewal trend, combined with limited new supply, is expected to help counteract rising availability and support positive absorption in the second half of the year. Sublease space remains a watchpoint, but underlying demand signals remain healthy. While uncertainty around tariffs could affect future expansion plans, the fundamentals of the Atlanta industrial market remain intact. Though Q2 was challenging, strong tenant retention and a constrained development pipeline position the market for a more balanced second half.