After record-setting activity in 2021 and 2022, Atlanta’s industrial market slowed in the first half of 2023. While industrial demand remains high, a slow deal process coupled with market uncertainty led leasing activity to decline to 6,460,974 SF in Q2 2023, the lowest level since Q3 2011. Sublease availability also grew by more than 3.2 MSF in Q2. Decelerating activity has not discouraged landlords from increasing rents, which hit a new record high of $8.32 PSF. Vacancy rose for the fourth consecutive quarter to 5.1% and tenant move-outs dropped net absorption to -557,882 SF in Q2 2023. Despite the Q2 slowdown, developers pushed ahead with new groundbreakings, with 36.2 MSF under construction, 19% of which is pre-committed.