The market continues to soften to close the year, with the vacancy rate climbing

Atlanta’s industrial market continues to soften to close 2023, following a trend from previous quarters. Vacancy now sits at 7.8%, a 370-basis-point (bps) increase year over year. Despite the increase in vacancy, rental rates continue to rise within the market. Asking rents rose 15.1% year over year, from $5.90 in Q4 2022 to $6.79 in Q4 2023. This continues to be caused by the persistent rise in construction costs and substantial pipeline of new quality product. The rise in vacancy is predicted to carry on into 2024, due to economic uncertainty as the market continues to decompress. The rise in vacancy is a positive sign for occupiers looking for space in Atlanta’s historically tight market. Going into 2024, expect Atlanta to maintain a strong foothold as an industrial cornerstone in the Southeast.

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