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Five Fast Facts: Atlanta Industrial Real Estate Q2 2022

Christa DiLalo • 7/7/2022
Atlanta’s warehouse/distribution market continued to break records in the second quarter of 2022.

Read our Five Fast Facts for more insight into the key trends that impacted the Atlanta industrial market during the second quarter. 

  1. Material Shortages Drive Construction Delays: - 6.7 MSF of new W/D, flex, and data center product delivered this quarter as developers were forced to extend their timelines on dozens of projects. More than 50.6 MSF of construction projects remains underway.

  2. Average Rent Continued to Climb: - Asking rents increased further in Q2, with the average rent for all industrial property types rising to $6.77 PSF. The W/D rate climbed 26.8% YOY to $5.45 PSF. W/D vacancies 300,000 SF+ averaged $4.59 PSF while smaller spaces average $6.06 PSF. Annual rent escalations are now frequently in the 3.5-4% range, up from the 2-2.5% norm several years ago.

  3. Vacancy Falls Further: - The vacancy rate fell below the 3% mark for the first time in market history, dropping to 2.7%. Across all of Metro Atlanta, only seven opportunities with immediate vacancies exist for tenants seeking spaces 300,000 SF or larger.

  4. National Leader of Absorption: - More space was absorbed in Atlanta during Q2 than any other market in the country. With 11.7 MSF of Q2 occupancy gains, the metro recorded a YTD total of 18.6 MSF of net absorption.

  5. Demand Remains Robust: - New leasing activity totaled 12.1 MSF. This marks the sixth consecutive quarter of 10 MSF+ in new demand and represents an 18.0% increase over Q1 leasing.


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