Atlanta’s industrial pipeline rightsizing after record-breaking years of development

– Atlanta’s pipeline for new construction has declined 1% YoY to a total of 11.5 MSF—the lowest in over a decade – but that is following a few years of record high development. The wave of recent deliveries have pushed vacancy to 9.5% but the thin pipeline is expected to drive vacancy down.

– While nearly every market nationally has seen decreases since the peaks from 2021-2023, Atlanta’s drop has less steep compared to peer markets like Chicago (-7%) and the Inland Empire (-6%), where higher rents and port reliance may be driving the pullback.

– Houston and Dallas have likewise seen a decrease in industrial pipeline inventory, though there are more fluctuations, with Houston and Dallas both seeing YoY increases of 14% and 22%, respectively.