Atlanta’s Industrial Sector Among the Busiest in 2024

January 31, 2025

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Here’s how the market fared last year, according to CommercialEdge data.

In 2024, Atlanta’s industrial sector showed continued growth, with both transaction activity and its pipeline posting growth on a year-over-year basis. As of December, the metro had an annual total of nearly $2 billion in sales.

Rendering of The Broe Group’s build-to-suit industrial facility at 5601 Bucknell, a white, blue and gray building. — The Broe Group is developing a 225,000-square-foot industrial facility that will have rail service. *Image courtesy of The Broe Group*

Moreover, the market had 8.2 million square feet under development during the same period, significantly surpassing the 3.3 million square feet recorded in December 2023.

Despite this growth, the metro’s vacancy rate increased 310 basis points year-over-year, as the influx in new supply put a dent in the metro-level average. Throughout the year, 9.3 million square feet of industrial space was delivered.

However, recent major projects underscore the market’s resilience and robustness. In January, Hines and Aubrey Corp. announced plans for a 10 million-square-foot mixed-use development, encompassing more than 2,390 acres. The industrial segment of this project will occupy more than 1,200 acres across two campuses, with the rest of the space being used for data center, retail, hotel and residential purposes.

Development pipeline grows, still below national average

At the end of December, Atlanta’s industrial sector had 8.2 million square feet under construction, more than double the 3.3 million square feet registered in December 2023. The 26 projects in the pipeline are expected to account for 1.4 percent of the metro’s total inventory.

Stonemont Park 75 South will take shape on an 113-acre site. Image courtesy of JLL Capital Markets

The market’s development index was below the 1.7 percent national average, but above peer markets such as Chicago (0.5 percent), Indianapolis (1.2 percent) and New Jersey (1.0 percent). Phoenix (4.5 percent) continued to lead nationally.

At the end of the year, The Broe Group acquired a 14-acre site in Georgia’s Fulton County Industrial District for the construction of a 225,000-square-foot build-to-suit facility. The building will have rail service, with pad-ready construction expected this February.

Additionally, 18 projects totaling almost 4.9 million square feet broke ground last year. One of them is Stonemont Financial Group’s Stonemont Park 75 South, a 903,701-square-foot industrial development in Locust Grove, Ga. In June, the firm obtained a $42.5 million construction loan for the three-facility campus.

Industrial completions remain steady

The park at 120 Interstate NW in Atlanta. — The four-building business park came online in 1978 and features 32-dock high loading doors and 22 drive-in doors. *Image courtesy of JLL*

Last year, Atlanta’s industrial market saw 26 properties coming online, totaling almost 9.3 million square feet—about 1.6 percent of the metro’s total inventory. This figure was slightly lower than the 9.7 million square feet completed in 2023.

Compared to peer markets, only Indianapolis (6.1 million square feet) and Kansas City (4.5 million square feet) saw less space delivered. Phoenix (32.7 million square feet) saw the most completions, followed by Dallas (29.1 million square feet) and Chicago (14.9 million square feet).

Last year, Panattoni Development completed the almost 1.4 million-square-foot Building 6 within Speedway Commerce Center, a 546-acre industrial campus in Hampton, Ga. Target agreed to prelease the distribution center in October 2023.

Assets trade for less, investment volume grows

Atlanta’s industrial investment volume reached roughly $2 billion last year, about $100 million higher than in 2023. However, assets traded on average for $108 per square foot, a slight year-over-year decrease from $116.

Exterior shot of the facility at 1347 Highway 92, Acworth, Ga. — In November, Samaritan’s Purse signed a lease to occupy the entire 172,000-square-foot warehouse at 1347 Highway 92 in Acworth, Ga. . *Image courtesy of Lee & Associates*

Among peer markets, New Jersey ($213 per square foot) and Phoenix ($162 per square foot) remained in the spotlight, while Chicago ($92 per square foot) and Indianapolis ($73 per square foot) were at the opposite end of the spectrum.

In one of the largest deals in the metro from last year, ATCAP Partners purchased Gwinnett Park, a 12-building, 753,700-square-foot light industrial park. Dogwood Industrial Properties, an investment platform of TPG Real Estate, sold the campus completed between 1973 and 1986.

Atlanta’s vacancy rate among the lowest nationally

At the end of December, Atlanta’s industrial vacancy rate clocked in at 6.8 percent, 310 basis points higher year-over-year. However, the figure is still 1.2 percent below the national average. Among peer markets, the metro had one of the lowest vacancy rates, while Indianapolis (9.8 percent) and Chicago (9.7 percent) had the most available space.

Rendering of Sugarloaf Logistics Hub's first phase. The master-planned industrial development will rise inside metro Atlanta. — Sugarloaf Logistics Hub’s first phase facilities will feature cross-dock, rear-load and front-load configurations, measuring between 193,150 square feet and 624,280 square feet. *Image courtesy of Foxfield*

In November, Samaritan’s Purse signed a 172,000-square-foot, full-building lease at a warehouse at 1347 Highway 92 in Acworth, Ga. The charitable organization will use the space to process Christmas gifts for children. Prologis acquired the facility in 2023 from Link Logistics.

Other notable leases in the area include Souto Foods’ commitment to 200,000 square feet at Sugarloaf Logistics Hub, a 2.2 million-square-foot master-planned industrial development in Lawrenceville, Ga. Foxfield and AEW Capital Management are the owners of the property that also includes a cold storage element.