Atlanta Industrial Investment Forecast
Greater Flow of Goods Drawing Investment Capital;
Conditions Continue to Be Healthy
Increasing port traffic underscores sturdy fundamentals. Atlanta remains one of the nation's most coveted metros by developers as a combination of strong tenant demand and relatively affordable land allow more speculative projects to pencil out. This year inventory growth will outpace leasing activity for the first time since 2020 causing vacancy to reverse course. Nonetheless the rate will remain sufficiently low to enable strong rent growth for a second consecutive year. The addition of new speculative space which accounts for more than 20 million square feet currently underway will also support the rise in marketed rents. A supply overhang is not expected to last for an extended period however as this year is projected to represent the second-largest increase in net absorption on record trailing only 2021. Container traffic from the Port of Savannah which handled a record 5.5 million TEUs last year is among the factors elevating users' space needs.