In May, sublease availability increased by 760,757 SF over the previous month.  Seven new sublease availabilities, each over 100,000 SF+, contributed to the largest increase in sublease availability year to date. The largest new sublease posted in May was Kuehne & Nagel's 474,425 SF at 2160 Anvil Block Rd in South Atlanta.

Even with the increase in Sublease SF, the total availability (vacant + under construction + sublease) fell, which Lee & Associates forecasted at the end of 2023.  Year-to-date leasing activity has remained steady, with approximately 6 MSF leased so far in Q2 2024, of which 3.5 MSF are new leases.  In May, GXO leased 733,680 SF in the I-20 West submarket, and Pactra took down 447,753 SF in the Northwest submarket.

As expected, new development activity continues to be very low.  Only three buildings, totaling 404,002 SF, broke ground thus far in Q2 2024.  Currently, there is 19 MSF under construction in the metro area, with +8.5 MSF scheduled to deliver before the end of Q2.   New development starts will remain scarce throughout the remainder of 2024, even with new deliveries falling sharply.  The result will be continued absorption into 2025, barring an unforeseen economic slowdown.