Atlanta Industrial Market: Q3 2024
The vacancy rate rose 45 basis points since Q2 to 8.75% and is up 291 basis points year-over-year. Sublease vacancy declined from 5.5 MSF in Q2, though still elevated from the pre-2020 average of 1.1 MSF. Rental rates increased 1.4% since Q2 to $9.04, with a 5.5% premium in northern submarkets. Newer buildings, built post-1995, continue to absorb tenants, while older buildings face accelerating losses and a 2.1% rent gap. New construction is down significantly, with YTD deliveries at 20.12 MSF but year-to-date net absorption lagging at 6.97 MSF.
