Sublease availability decreased by 294,060 square feet for June 2024.  Only 12 new subleases were added to the market in June with only one exceeding 100,000 square feet.

Total available space includes under construction, sublease space, vacant space and occupied space that is being marketed as “available.  Total availability increased by 3.5 MSF over last month.  The 3.5 MSF increase was driven primarily by six new, large second-generation availabilities totaling about 2 MSF in the South Atlanta submarket.

On a positive note, there has been a noticeable increase in tours, requests for proposals and overall market activity in June and Q2 had 3.4 MSF of positive absorption.

New industrial development remains very tempered in metro Atlanta with almost no new projects going vertical.  Atlanta’s vacancy rate increased to 8.2% at the end of Q2 due mostly to 7 million square feet of new product that delivered in Q2.  About half of that 7 million SF was pre-committed including Target, Lidl and NewCold.  Even as the remaining under construction buildings deliver over the rest of 2024 and early 2025, we forecast continued positive absorption and increased competition for existing availabilities over the next year.