Despite uncertain economic headwinds, demand in Atlanta holds as vacancies remain near record lows

As Q3 ends, Atlanta’s industrial market has continued to favor landlords. Despite 40-year-high inflation and rising interest rates, rental rates remain at historic highs and vacancies remain near historic lows. In Q3, rental rates in Atlanta rose to a new high of $5.69 per square foot (psf), representing an increase of 22.9% from the same period in 2021. The high velocity in rental rate increase is in large part due to the still-suppressed supply. Atlanta’s industrial market showed a vacancy rate of 4.1%. Although vacancy rose slightly from Q2, the demand is far outpacing market supply. The Stone Mountain submarket claims the quarter’s lowest vacancy, at only 0.5%.

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