ATLANTA—Unprecedented. That's the word to describe the industrial real estate construction pipeline in Atlanta and its metro area.

No other quarter in Atlanta's history has witnessed higher construction activity than the 18.1 million square feet currently underway, according to CBRE's latest research. What's even more telling is this stat: Over 70% of the total industrial real estate properties under construction are speculative developments.

“Atlanta's industrial market continues to be among the most active in the nation, spurred by a steady stream of organic growth combined with new entrants to the market,” Todd Barton, CBRE Atlanta first vice president of Industrial Properties, tells GlobeSt.com. “Atlanta's market dynamics have led to historically low vacancy, increasing rental rates and significant investment sales activity.  The amount of speculative development underway, while significant, is appropriate for the market given the limited spec delivers in the past five years.”

Here's another telling stat: Current vacancy represents a 13-year low as the metro is once again primed for significant industrial expansion. This current industrial development cycle—the third growth cycle since 1990—adapts to the needs of prospective large or big block users, boasting an average 580,000 square feet, whereas the previous cycle's development averaged 240,000 square feet.

“As Atlanta has proven itself as the Southeast's distribution hub, larger and more established companies look to either expand their footprint in the area, or relocate here entirely,” says Dan Wagner, CBRE Southeast Research Manager. “Developers are paying attention to this trend, with larger spaces specifically suited to accommodate this tenant profile. Yet, even with the speculative development, the majority of Atlanta's leasing activity comes from medium to small businesses.”

With 5.3 million square feet of absorption in the second quarter 2015, market fundamentals have continued to make large strides despite the tightening market conditions. The first half of 2015 experienced a total net absorption of 9.4 million square feet, according to CBRE. This is the highest first half net absorption in 15 years and exceeds the first half of any year in the previous growth cycle. Research suggests that if absorption trends remain consistent through December, 2015 is in a position to surpass 2014's 17.4 million square feet of net absorption.

The overall asking rental rate for Atlanta's industrial market continued to experience a substantial increase in second quarter of 2015. Bulk warehouse product, which makes up approximately 70% of Atlanta's industrial market, saw a 3.8% increase in the average asking rate quarter-over-quarter and an 8.8% increase year-over-year.

Overall, the industrial market has surpassed recent historical highs. As vacancy rates declined, rental rates, net absorption, construction and completions have increased, placing the industrial market in the best position, since 2000, to excel without a foreseeable halt to its continued expansion.