Atlanta’s industrial market eyes stability in 2025 amid vacancy growth

Atlanta’s industrial market enters 2025 with vacancy continuing to rise, reaching a five-year high of 10.2% in Q1 2025—up 200 basis points (bps) year-over-year and 360 bps above the five-year quarterly average of 6.6%. Despite the elevated vacancy, the market has shown impressive resilience, with asking rents climbing to a new five-year high of $7.03 per square foot (psf), reflecting a 3.3% year-over-year increase. This continued strength in rental rates highlights the enduring demand for high-quality industrial space and underscores Atlanta’s role as a critical logistics hub. As the pace of vacancy growth begins to moderate and fundamentals stabilize, the market is poised for a more balanced trajectory in 2025, setting the stage for a promising year ahead.

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