Vacancy ticks up as the market continues to decompress

Atlanta’s industrial market continues to soften in the second quarter of 2024. The vacancy rate has risen to 9.0%, up 350 basis points(bps) year over year. This increase is largely attributed to the significant new supply coming onto the market, which has outpaced demand. Despite the rising vacancy rate, rental rates have also increased. Asking rates rose 8.2%, from $6.43 in Q2 2023 to $6.96 in Q2 2024, reflecting higher construction costs and the availability of more premium space. As Atlanta’s market continues to decompress and move towards pre-pandemic norms amid economic volatility, vacancy rates are likely to keep rising throughout 2024. Nonetheless, Atlanta is expected to maintain a strong foothold as an industrial cornerstone in the Southeast for the foreseeable future.

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