Atlanta's industrial real estate market had its second straight monthly decline in sublease availability, with a reduction of 441,751 square feet in July 2024.   One of the main drivers was eFulfill's takedown of 468,827 square foot space in I-20 West. The overall market availability (comprised of under construction, sublease space, vacant space, and occupied space marketed as "available") has also decreased, thanks to robust leasing activity this quarter.

We are likely to see diverse market factors impacting the Atlanta industrial market for the rest of this year, including:

• The Presidential election in November may cause a delay in some real estate decisions.
• A 250 basis point reduction in the interest rate by the Fed in September could encourage developers and capital markets to sharpen their pencils.
• Continued absorption coupled with ten-year low volumes of Under Construction inventory may spur a mild increase in construction starts.