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Market Report

Atlanta Industrial Market Report

Midyear 2022

Incoming Inventory Wave Tests Industrial Demand;
Metro Distributors Invest in High-Tech Warehouses

Supply growth outpaces immediate demand. In the fourth quarter of last year, a net of 16.5 million square feet was absorbed across Greater Atlanta, marking the highest three-month total observed in any U.S. metro in 2021. A bevy of commitments for floor plans exceeding 100,000 square feet in the coming months indicates hearty absorption is expected to continue through the end of this year. However, the 30 million square feet scheduled for 2022 completion will be the highest annual total reported in the metro yet, and the fifth highest in any market nationwide since at least 1996. Additionally, roughly 70 percent of the active pipeline was unaccounted for as of June. Much of this available space should find tenants before finalization, but this year's acute supply injection will still translate to the first year-end increase in vacancy since 2019.
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