Atlanta industrial market dynamics report, Q2 2026

Atlanta's industrial market gained momentum in the second quarter of 2026, posting 4.4 million square feet of net absorption as signed leases converted into physical occupancy after a slower 2025. Leasing activity climbed to 12.1 million square feet, and developers broke ground on Atlanta's first 1 million-square-foot speculative project since 2023.

• Leasing volume rose 19 percent year over year, with new leases accounting for more than two-thirds of activity. 
• Owner-occupied and build-to-suit projects drove Q2 absorption, led by the Hyundai-SK Battery facility and five additional large-block move-ins. Year-to-date net absorption reached 9.17 million square feet.
• The 1 million-square-foot speculative project is the first of that size to break ground in Atlanta since 2023, signaling renewed confidence in large-format development.

Vacancy held at 9%, availability tightened

Total vacancy in Atlanta held at 9 percent in the second quarter of 2026. Total availability fell to 12 percent as leasing absorbed available industrial space faster than new supply could replace it.

Rent rose as concessions stayed stable

Average asking rent rose to $7.43 per square foot. Landlords kept concessions stable rather than adding incentives to compete for tenants. Developers preleased 32.7 percent of the space under construction, a partial buffer against new supply risk in the second half of the year.

Signed commitments converted into occupancy after a slow 2025

Atlanta's 2025 slowdown reflected delayed occupier decisions as companies reassessed supply chain footprints. Those signed commitments began converting into physical occupancy this quarter, which is why absorption outpaced most of last year's pace.

Leasing demand concentrated in two size segments

Leasing demand was concentrated by volume in the 500,000-to-1-million-square-foot range, while the 100,000-to-250,000-square-foot segment produced the highest number of transactions. That split matters for the second half of the year: large-block occupancies drove the quarter's headline absorption number, while the steady pace of mid-size leasing builds a pipeline of future move-ins that could tighten availability. For office-sector trends in the same market, see the Q2 2026 Atlanta office market dynamics report.

Pipeline fell slightly to 12.3 million square feet

Atlanta's construction pipeline fell slightly to 12.3 million square feet under development, with 4.8 million square feet delivered in the quarter. Developers responded to improving demand with six speculative starts.

First 1 million-square-foot spec project since 2023

One of the six speculative starts was a 1 million-square-foot project, the first of that size to break ground in Atlanta since 2023. That start marks a shift after two years in which spec developers had favored smaller, more flexible formats over large-format, single-tenant buildings. See also JLL's Charleston industrial market report, a comparable Southeast port-adjacent market where speculative activity is worth watching alongside Atlanta's.

Vacancy should trend lower as leasing converts to occupancy

Atlanta enters the second half of 2026 with improving fundamentals. Recent leasing activity will feed future occupancy, particularly in logistics-oriented corridors and newer large-block product. Vacancy should trend lower as signed deals convert to move-ins ahead of new speculative deliveries. Elevated availability in select submarkets gives occupiers more options and keeps landlords competing for tenants.

Development to stay active but disciplined

Development activity is expected to stay active but disciplined, with builders concentrating on corridors where recent leasing and occupancy patterns show the clearest evidence of durable demand. For regional comparison, see JLL's quarterly industrial reports for Charlotte and Raleigh-Durham.

This report is produced quarterly by JLL Research and covers industrial and logistics real estate fundamentals in the Atlanta metro area for the second quarter of 2026 (April through June). It tracks net absorption, leasing activity, construction and development, vacancy, availability, asking rent and concessions.

The full report includes additional detail on submarket-level activity and a complete historical data series. Download the full PDF below, and explore JLL's report on U.S. industrial market statistics and trends for the national context behind Atlanta's numbers.

^{Report originally released July 9, 2026 and authored by Raymond Charles, Senior Research Analyst, JLL Research.}