State of the City: Atlanta’s Mid-Year Market Industrial and Office Market Report

by: Smith and Howard

September 6, 2016

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Integra Realty Resources (IRR) has released its mid-year report on Atlanta’s industrial and office markets, and the news is positive. Employment continues to improve, the real estate market is flourishing – especially intown – and the movie industry continues to boost Atlanta tourism. The outlook for the Atlanta industrial market is also strong with higher rents, lower vacancies and positive absorption.

Here is a closer look at the industrial and office market indicators:


  • Through June, Atlanta employment exceeded 2.6 million, which is 400,000 above prerecession levels
  • The state’s mid-year unemployment rate in June was 5.3%, down from 6% in 2015

Industrial Market

  • Slightly declining vacancy rates
  • New construction with high rents is fostering rental increases; rental escalations of 2% – 3% annually are projected
  • Improving economy and growth of internet sales is spurring growth
  • With 3.1 million square feet under construction, South Atlanta is the largest warehouse/distribution submarket
  • Significant projects include:
  1. One million square feet for speculative building at Majestic Airport Center IV
  2. One million square feet in Social Circle for Baxter Pharmaceuticals

Office Market

  • Several companies in the growing technology industry recently leased Midtown office space
  • Increasing number of companies seek intown locations to attract millennials
  • Tenants continue to seek higher quality office space
  • Overall construction employment is surging as housing construction levels improve
  • Suburban office vacancy rates are slightly declining

To view all IRR’s mid-year Atlanta reports, please click here.  

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