Megawarehouse Leasing Activity Returns to Atlanta After Slow 2023

The capital of the Peach State landed five of the largest industrial leases signed during the first half of 2024, according to a new report from CBRE.

Atlanta’s five largest industrial deals, 60% of which were new leases, totaled approximately 3.4 million square feet. Atlanta’s last appearance on this list occurred in 2022 when it ended the year with eight of the top 100 industrial leases in the country, totaling 8 million sq. ft. Similarly, Savannah, Georgia, landed three of the largest industrial leases signed in 2023, totaling 4.2 million sq. ft., but did not break into the H1 2024 list.

“Big Box industrial leasing demand is picking up in the second half of 2024, coming on the heels of a sluggish start to the year and a quiet 2023,” said Blaine Kelley, Executive Vice President with CBRE in Atlanta. “We expect it to continue into 2025 as companies consolidate and upgrade their facilities to serve the growing Southeast region. Vacancy rates have returned to historical averages around 7%, as development slowed after its torrid three-year expansion.”

Industrial occupiers signed leases for 31 megawarehouses, or those of 1 million sq. ft. and above, in the first half of 2024, a 35% increase from the 23 recorded in last year’s first half. The average size of leases in the largest 100 increased to 814,000 sq. ft., up from 791,000 sq. ft. a year earlier. The average size of Atlanta’s five largest leases trailed the national average at 679,981 sq. ft.

Claiming the largest shares of the top leases were traditional retailers and wholesalers with 30, followed by third-party logistics providers (29), e-commerce operators (14), and food & beverage companies (13). Third-party logistics providers, or 3PLs, handle clients’ warehouse and shipping operations on an outsourced basis. In Atlanta, manufacturers made up two of the largest leases. The remaining three also included a 3PL, a food & beverage company, and a retailer.

Other top markets across the U.S. include:

Markets With Largest Share of Top 100 Industrial Leases of First Half of 2024