The Atlanta Industrial market has continued its hot streak throughout 2021. The vacancy rate dropped to a new record low of 3.5% in Q4 and has proven that the Atlanta industrial market will continue to be a national powerhouse. Net absorption in the Atlanta Industrial market continues to rise as it reaches 40.6 MSF for 2021, which is more than twice the amount of absorption for 2021. Due to the overall lack of space for tenants and extremely high demand, the average asking rental rate PSF has increased to $6.97. 

Another impressive new record for the Atlanta industrial market is the square footage under construction, 43 MSF. As more big-box distributors and financial service entities enter the Atlanta market, we will see a continuation of increased under construction for the foreseeable future. Georgia has been ranked one of the top states to conduct business during the pandemic due to our abundance of qualified workforces across all major industries and the state’s favorable business tax incentive programs. One of the most notable transactions in 2021 was Amazon signing a 1 MSF lease outside of Cartersville, GA. An example of one of many new warehouses popping up around Cartersville will provide Bartow County jobs. 

At a submarket level, Northeast Atlanta, which lost the title of largest industrial submarket in Atlanta last quarter, has shown that it is ready to fight for that position in Q4. Under construction has increased from 9.6 MSF in Q3 to 13.5 MSF in Q4.

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