Vacancy in Atlanta’s industrial market climbed to 9.5% in Q2, marking a shift driven by large tenant move-outs, delayed occupancies, and rising sublease availability. Despite negative net absorption for the first time in two years, strong renewal activity—particularly among tenants from the 2020 leasing cycle—reflects continued long-term confidence.

New construction has slowed significantly, with just 4M SF delivered so far in 2025 and 5.5M SF still underway. This disciplined approach to development, combined with steady tenant retention, is expected to help restore balance to the market in the second half of the year and support a more competitive environment heading into 2026.