Chattanooga is still recovering from the COVID-19 pandemic, posting positive economic growth. The market’s low business costs, able workforce, and easy access to larger logistics markets have attracted manufacturing and logistics companies. The increased industrial demand for distribution space comes from companies looking to serve the local population, smaller manufacturing firms, and Volkswagen. Though leasing activity has slowed and some larger move-outs have been recorded, vacancies still sit below the market’s historical average. Despite an aging stock and slowing demand, owners were still able to raise rents over the last 12 months by 6.8 percent.