Atlanta’s Industrial Market Report
2022 Mid-Year Overview
Atlanta’s low business costs, robust infrastructure, and port access have established the metro as a crucial national distribution hub. Similar to other national and super-regional distribution hubs, most industrial demand is driven by multinational firms taking large portions of space. The metro’s speculative pipeline continues to grow, though vacancies are still trending downwards due to incredible net absorption. Landlords reign in pricing power thanks to the compressed vacancies. Rent growth is reaching new records, yet the market remains the least expensive major industrial market in the nation.
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Sales Volume
Atlanta’s strong sales performance in 2021 has carried over into 2022, recording over $1 billion in sales in Q1. Atlanta consistently ranks among the nation’s leaders in total deal volume thanks to its variety in asset types, massive inventory, and above-average local and regional demographic growth.
Number of sale volumes in the past 12 months include:
• Sale Comparables: 1,287
• Average Price per Square Foot: $104
• Average Cap Rate: 6.7%
• Average Vacancy at Sale: 8.4%
Construction
With 41.4 million square feet underway, Atlanta ranks among the top five markets national for industrial supply under construction. Groundbreakings have taken off in recent quarters, with 70 percent of supply in development available for lease.
Top industrial market leaders for Atlanta include:
• Kennesaw
• Union City
• Douglasville
• Coweta County
• Newton County
• Henry County
