Atlanta Industrial Figures Report - Q4 2023
January 11, 2024 10 Minute Read
‒With net absorption totaling 8.6-million sq. ft. in 2023, Atlanta's industrial market experienced its lowest annual amount of space absorbed since 2012.
‒Atlanta's industrial market expanded by a historic 36-million square feet in 2023 following two consecutive quarter of record-breaking construction completions.
‒The vacancy rate in Q4 increased by 190 bps to 7.7%, the highest it has been since Q3 2017. This is largely due to the addition of 11-million sq. ft. of unoccupied deliveries in the fourth quarter.
‒Despite a 13.5% year-over-year increase in rates, the average NNN lease rate for Atlanta's industrial market showed no significant movement quarter-over-quarter due to hesitation of some landlords to raise rents as tenant demas has slowed. The record influx of new space in the market has also had an impact on rental rates.