2022 was another banner year for Atlanta’s industrial market, with Q4 absorption coming in at #1 in the nation. While more than 31 MSF of new product delivered (#2 in the U.S.), this space was 74% pre-leased. As demand kept pace with this record-breaking new supply, vacancy remained near its historic low at 3.3%.
Read our Five Fast Facts for more insight into the key trends that impacted the Atlanta industrial market during the fourth quarter.
#1 ABSORPTION IN THE U.S.:
Atlanta recorded greater occupancy gains than any other market in the U.S. in Q4 with 9.2 MSF absorbed, driving the annual total to 29.4 MSF.
#2 MARKET FOR NEW SUPPLY IS 74% PRE-LEASED:
Throughout 2022, 31.1 MSF of new construction completed across Atlanta—the second highest in the nation. In total, 73.5% of this product is already leased or owned by a user.
VACANCY REMAINED IN LOW 3%:
Despite ample new supply during Q4, vacancy remained relatively flat at 3.3%, on par with the U.S. average.
FOUR LARGE LEASES IN Q4:
Four new leases of 400 KSF+ were inked in Q4, bolstering quarterly leasing and driving the metro to an annual total of 40.1 MSF.
AVERAGE RENTS CLIMBED TO $7.05 PSF:
The direct average rental rate increased 13.9% YOY, but Atlanta still offers a substantial discount below most other top-tier industrial markets.
