Research

With the close of 2024, Atlanta’s industrial development pipeline has reached historic lows, signaling a significant market shift heading into 2025. While vacancy rates have increased to 8.8%, largely due to the delivery of vacant big-box product, leasing activity in the bulk space sector picked up toward the end of the year. This area, which has been the primary driver of the rising vacancy rate, is expected to see further improvement as tenants take occupancy…

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  Industrial Overall Availability: Total available industrial space inched up to 93.03 million SF in January 2025, from 91.37 million SF in December 2024. Sublease Availability: Sublease availability rose slightly to 9.86 million SF in January 2025, largely due to a new 356,000 SF sublease at 300 Horizon Drive in Northeast Atlanta. Development Activity: There was little change in development activity from last month, but groundbreakings are expected to increase as strong leasing activity continues.

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Atlanta’s medical office market is thriving, carving out a unique position in the city’s commercial real estate landscape. Vacancy rates have plummeted to a decade-low of 8.3% as of Q4 2024, underscoring the sector’s resilience in an otherwise challenging market. This surge in demand is largely attributed to Atlanta’s booming population and the aging baby boomer demographic, both of which are driving the need for accessible, high-quality healthcare facilities. The growing importance of strategically located…

  Industrial Availability Declines in December 2024: After an increase in November from several new groundbreakings of speculative product, industrial availability in Atlanta declined in December, driven by strong leasing activity. Sublease Availability Shows Year-Over-Year Decline: Positive tenant demand led to a 19.5% decline in sublease availability year-over-year, despite a small month-over-month increase. Under-Construction Pipeline at Low Levels, Future Spec Projects Expected: The under-construction pipeline for industrial properties stood at 5,198,515 square feet at the…

The annual Lee & Associates Atlanta Industrial Real Estate Forecast is a forward-looking analysis of changing market conditions in 2025. Atlanta’s industrial fundamentals remain among the strongest in the nation and activity is expected to gain more momentum as the economic conditions improve. The following pages outline recent performance, the economic drivers impacting industrial buildings, and our outlook on activity in 2025. We hope this forecast prepares you for changing conditions ahead and inspires your…

  In December 2024, total market-wide availability increased, fueled by ten new industrial groundbreakings that added 2.1 million square feet (sf) of new space availbility. Despite this, Atlanta’s industrial pipeline remains at historically low levels. Sublease availability has remained stable, with minimal increase month over month, accounting for only 1% of total inventory. A wave of speculative supply is expected to deliver in first half of 2025, followed by a decline in new deliveries and…

Not exactly. The statistics paint a bleak picture — Atlanta’s office market vacancy recently peaked at 24.7% and occupancy losses were recorded for the eighteenth straight month. But despite poor stats and negative headlines, office buildings remain key places for companies to drive innovation, build company culture and leverage teamwork to achieve common goals. This is leading to more companies returning to the office (RTO) to drive results, meanwhile revealing early signs of office market…