Vacancy reaches a high to start the year as the market continues to decompress

In Q1 2024, Atlanta’s industrial market continues to show signs of softening. Vacancy proceeds to rise to a high of 8.4%, marking a 320 basis-point (bps) increase year over year. Rental rates also continue to rise, despite the uptick in vacancy. Asking rates rose 10.2%, from $6.18 in Q1 2023 to $6.81 in Q1 2024. The increase is largely the result of more expensive quality product on the market, as well as higher construction costs related to new product. As Atlanta’s market continues to decompress and inch towards pre-pandemic norms due to economic turbulence, vacancy is likely to continue to rise throughout 2024. Despite the constant increase in vacancy, Atlanta is expected to maintain a strong foothold as an industrial cornerstone in the Southeast throughout the rest of 2024.

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