At the end of 2025, Atlanta’s industrial market turned a corner and has now regained its footing, especially in the bulk sector. Four consecutive quarters of strong leasing activity signal that demand has returned, large users are back in the market and much of the inventory delivered immediately after the COVID-era development boom has been or is being absorbed.
For owners, developers and investors, the key takeaway is straightforward: Atlanta remains one of the country’s most resilient industrial markets, but the next phase of growth will be shaped by disciplined development and a continued flight to quality.
As for the broader market, leasing momentum began to accelerate late last year after a challenging stretch. Since then, leasing activity has steadily improved. Through the third quarter of 2026, Atlanta recorded 32.4 million square feet of new leasing activity for the year, with nearly 13.5 million square feet leased during the third quarter alone, according to Cushman & Wakefield’s data. Year-to-date leasing activity nearly surpassed all of 2025.
What’s particularly encouraging is the return of large-format users. “Bulk is back” has become a common refrain across the industry, and the data support that narrative. Several transactions exceeding 500,000 square feet were completed during the quarter, including commitments from major occupiers such as Nike, Google, Siemens, Genuine Parts Co., HCL Critical Infrastructure and QTS.
The reemergence of bulk leasing is helping Atlanta chip away at a significant amount of first-generation product that entered the market during the industry’s recent construction boom. Many of these buildings sat available for two to three years after being delivered into a softer leasing environment. Today, those assets are finally finding users, thanks to demand from a broad range of industries and an emerging wave of industrial tenants supporting data center growth and infrastructure.
Another factor in the longer lease-up time involves transactions’ total timeline to execution. There is slack in every part of the system, and the previous optionality offered end users more breathing room on making decisions.
Among Atlanta’s industrial submarkets, I-75 North has emerged as one of the region’s standouts for the past few quarters. The submarket generated approximately 2.5 million square feet of new leasing activity during the third quarter, leading the metro area and posting some of the strongest vacancy improvements in the market. Direct vacancy in I-75 North fell to 6 percent, down 100 basis points from the prior quarter.
Developers continue to pursue opportunities throughout metro Atlanta, but well-located sites along I-75 North remain especially attractive because of their access to labor, transportation infrastructure and regional distribution networks. At the same time, industrial development is increasingly pushing farther into established corridors and emerging markets where land availability remains favorable.
Another notable trend is the growing preference for modern facilities. Tenants continue to prioritize buildings with higher clear heights, efficient circulation and contemporary logistics specifications. As a result, newer assets are leasing more quickly, while older and functionally obsolete properties often face longer marketing periods unless repositioned or redeveloped.
Recent Cushman & Wakefield research reflects this trend. According to our Atlanta industrial “Emerging Trends” report, industrial buildings delivered since 2021 recorded 80.8 million square feet of cumulative positive absorption from 2022 through second-quarter 2026, while product built 1980-1999 and 2000-2020 posted cumulative occupancy losses of 9.6 million square feet and 10.1 million square feet, respectively. Newer product also maintained substantially stronger leasing performance, accounting for at least 12 percent of inventory leased annually from 2022 through 2025.
That trend also is driving redevelopment activity across the region. One example is Pleasantdale Exchange, where older industrial buildings are being demolished and replaced with a three-building logistics park in an infill location near I-85 and I-285. Projects such as these demonstrate that location remains one of the strongest determinants of value, particularly for users seeking proximity to labor pools and transportation infrastructure.
The Airport submarket offers another example of improving fundamentals. Historically slower to recover than some of Atlanta’s other industrial corridors, the area has recently experienced increased velocity in the 100,000- to 200,000-square-foot range. A recent lease of approximately 110,000 square feet at Victory Landing Logistics Center underscores renewed tenant interest in high-quality product near Hartsfield-Jackson Atlanta International Airport.
Market-wide, vacancy also continues to move in the right direction. Atlanta’s direct vacancy rate ended the third quarter at 7.8 percent, down 80 basis points year-over-year. While some second-generation space remains available, particularly properties affected by pandemic-era overexpansion, a vacancy rate around 8 percent represents a healthy and balanced market by historical standards.
New construction remains relatively restrained as well. Atlanta has approximately 8.4 million square feet under construction, a significant moderation from the development levels seen during the market’s peak expansion years. While some additional projects are beginning to move forward, uncertainty in debt and equity markets continues to temper speculative development.
That restraint could ultimately benefit landlords. If tenant demand continues at its current pace while new supply remains limited, available first-generation space could tighten more quickly than many expect. Such a scenario would support further rent growth, particularly for modern logistics facilities.
With direct asking rates averaging $7.79 per square foot, rents are already continuing their upward trajectory, albeit at a much more measured pace than the dramatic increases that followed the pandemic. Tenants with leases signed five or more years ago are often facing meaningful mark-to-market adjustments at renewal, illustrating how much the underlying economics of industrial real estate have evolved.
Atlanta’s industrial market is no longer defined by record-breaking development or rapid expansion. Instead, it is entering a healthier phase characterized by absorption, disciplined construction and renewed tenant confidence.
Market fundamentals are strengthening, vacancy is improving and large users are once again making long-term commitments. For Atlanta industrial real estate, that combination suggests the recovery is not only underway, but increasingly sustainable.
— By Lisa Pittman, SIOR, Executive Managing Director, Cushman & Wakefield. This article was originally published in the October 2026 issue of Southeast Real Estate Business.