Atlanta’s Industrial Market Shows Strong Pricing as Pipeline Doubles

Atlanta’s industrial market maintained solid momentum through April, marked by robust pricing, heightened construction activity and a vacancy rate still below the national average.

The sales volume neared $204 million, with the metro recording one of the highest per-square-foot averages in the country. Meanwhile, the development pipeline more than doubled year-over-year, supported by a mix of speculative and build-to-suit projects.

Sale price among the highest in the nation

Atlanta’s industrial sales volume reached $204 million year-to-date, with almost 2 million square feet of industrial space sold across 17 facilities. The metro’s sale price reached $143.38 per square foot.

Only New Jersey ($279.02 per square foot) and Phoenix ($193.26 per square foot) recorded higher numbers, while metros like Chicago ($94.71 per square foot) and Kansas City ($93.30 per square foot) were at the lower end of the spectrum.

In one of the largest recent transactions in the metro, Dossche Holdings sold two industrial buildings totaling nearly 1.2 million square feet in Dalton, Ga., for $116.5 million. A joint venture of LX Pantos and Korea Ocean Business Corp. purchased the assets.

Developed by Dossche and part of the Greenpoint Industrial Park, the two fully leased, Class A assets are 128 Innovation Drive and 342 Innovation Drive, measuring 603,166 and 573,578 square feet, respectively.

Development Pipeline More Than Doubled

At the end of April, Atlanta had almost 9.5 million square feet of industrial space under construction across 33 properties. The pipeline accounted for 1.6 percent of total stock, slightly lower than the 1.7 percent national average. Among peer markets, Phoenix (3.8 percent) took the lead, while Chicago (0.5 percent) and New Jersey (1 percent) recorded lower numbers than the national average.

The development pipeline more than doubled from the same time period of last year, when only 3.2 million square feet—across 10 properties—were under construction. A total of 1.7 million square feet of industrial space broke ground across 7 properties—accounting for 0.3 percent of total stock.

Holder Properties and Tamarack Investments recently secured $46 million in construction financing and $25 million in joint venture equity for the development of a 608,642-square-foot industrial facility in Cumming, Ga. Rising at 4005 Settingdown Road, Coal Mountain Industrial Park will be delivered in phases starting in 2026’s second quarter. Plans call for three rear-load buildings, measuring 146,000, 250,150 and 212,500 square feet. Pinnacle Financial Partners provided the construction loan while Hartford Investment Management Co. contributed the joint venture equity.

Deliveries Show a Steady Pace

Year-to-date through April, 5 projects totaling 2.2 million square feet of industrial space came online in Atlanta. The deliveries accounted for 0.4 percent of total stock, close to the national average of 0.5 percent.

Pheonix (9.3 million square feet) ranked first, with Kansas City (8.7 million square feet) following closely. Metros such as Indianapolis (752,500 square feet), lagged behind.

In February, Trammell Crow Co. and CBRE Investment Management completed Phase One of Jackson 85 North Business Park in Pendergrass, Ga. This first phase consists of two speculative Class A warehouses totaling 1,556,350 square feet on 215 acres. Building 1 measures 538,450 square feet, while Building 2 is 1,017,900 square feet. The cross-dock facilities feature 40-foot clear heights, 185-foot concrete truck courts, abundant trailer and car parking, more than 290 dock door positions and four drive-in ramps. 

In March, PNK Group delivered PNK Lambert A, a 1.2 million-square-foot industrial building part of the PNK Park Southern Gateway campus in McDonough, Ga., about 35 miles from downtown Atlanta. The developer broke ground on the project in October 2023. The 100.8-acre site is at 1325 Highway 42.

At full build-out, PNK Park Southern Gateway is expected to have about 3 million square feet of industrial space across four facilities. The campus is part of a larger cluster of properties that are home to corporations including Ecolab, Horizon Group USA, Whirlpool, The Home Depot and Kimberly-Clark.

Vacancy Rate Lower Than the National Average

Atlanta’s industrial vacancy rate at the end of April reached 8.2 percent, lower than the national average of 8.8 percent, but much higher than the 5 percent recorded in the metro in April 2023.

Atlanta saw a 9.5 percent surge for in-place rents, according to Yardi Research Data. Among peer markets, Chicago (10.9 percent), Indianapolis (10.2 percent) and New Jersey (9.5 percent) had higher vacancy rates.

Back in March, Kittrich LLC signed a long-term lease renewal with SkyREM at 5070 Phillip Lee Drive, a 400,800-square-foot infill industrial property in Atlanta’s Fulton submarket. The property will receive significant capital improvements funded by SkyREM, including a new asphalt parking lot, LED lighting upgrades, new perimeter fencing, office and bathroom renovations, new loading dock packages and exterior painting.