Atlanta Industrial Market Report

Long-run demand drivers counterbalance near-term headwinds. Atlanta’s industrial sector is cooling after an impressive stretch, with the exit of several logistics operators, including GXO Logistics, pushing vacancy to a near 10-year high entering 2024. Despite near-term frustrations, business commitments and infrastructure investments — both within the metro and in nearby transit nodes — are setting a solid foundation for future demand. Manufacturers continue to target Greater Atlanta for production sites; Zoetis, Inc and Boston Scientific represent some of the life sciences concerns commencing operations here in 2024. The metro has also benefited from its position near several major southeastern maritime gateways in recent years. Improvements to those ports are continuing, including a $127 million grant from the State of South Carolina to the Port of Charleston last year aimed at enhancing throughput. These drivers should continue to draw logistics providers seeking to establish operations in the metro.