For the most part, big box industrial is on strong footing in Atlanta. Notably, in a first-quarter market report posted by CBRE, vacancy continued to trend down, now averaging a 9.2 percent rate in the city. That marks the first time that a big box industrial vacancy was seen under 10 percent in four years.
Rents have been gaining but more steadily, with rates averaging $7.07 NNN per square foot at the end of March. That total is up a modest two percent since 2024 and has increased by 27 cents per square foot over the past two quarters.
Also, CBRE noted that absorption gains continued, with demand exceeding 4.6 million square feet in the first quarter. This was driven by large user sales.
While leasing has weakened in the market, with activity dropping about eight percent year-over-year, the market is starting to shift toward new leases.
"There was a notably larger percentage of new lease transactions compared to the first quarter of 2025," CBRE said. "Almost two-thirds of the activity in Q1 2026 was in new lease transactions."
That comes after the fourth quarter saw the best three-month period of leasing in more than three years.
The top lease in the first quarter came from a 1.6 million square foot renewal in the Southeast/I-75 submarket. The next two largest deals included one million and 810,000 square feet signings in the Airport and Northeast/I-85 submarkets, respectively.
Also, the supply trends look favorable for big box industrial in Atlanta. Construction is up from a year ago, but the activity remains at its lowest levels in over a decade, with 7.6 million square feet underway. Additionally, the one million square feet of deliveries are in "check," according to CBRE.
Going forward, the CRE firm expects larger gains in rents, despite the flattening that has taken place over the past year.
"As availabilities continue to decline, and new deliveries remain in check, momentum will lead to more consistent increases in rents, specifically in Atlanta's most in-demand submarkets," it said.
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