Atlanta Industrial Market Report

Supply wave generates short-term headwinds, despite solid long-term outlook. Atlanta’s robust industrial growth in recent years stems from its fortunate geography, connecting the burgeoning consumer markets of the Upper South with the ports of Savannah and Charleston. These maritime hubs have observed significant infrastructure investment over the past half-decade, translating to record cargo throughput in these terminals in 2022. An upcoming supply injection, however, will create hurdles for the sector. Developers will increase completions in 2023, placing the two-year development total in excess of 55 million square feet. While this — in tandem with wavering consumer spending — will impact competition for existing logistics space and drive up overall availability, that metric will remain well under the norm seen prior to 2020. Demand for distribution space, in particular, is showcased by Sam’s West and Lidl taking a combined 2 million square feet off the market in 2023. The metro also boasts a growing manufacturing sector, with million-square-foot operations from SK and Procter & Gamble opening this year.