Leasing & absorption
- Tenants signed ≈ 10.8 MSF last quarter—Atlanta’s quietest three-month stretch since late 2023, thanks to fewer >500 KSF big-box deals, yet small-bay activity stayed healthy. Net absorption remained positive at 0.94 MSF. CBRE
Vacancy
- New supply of only 1.5-2.1 MSF helped keep the direct vacancy rate at 7.9 %—up just 20 bps q/q and roughly in line with the metro’s 10-year average. Cushman & WakefieldCBRE
Rental rates
- Headline NNN asking rent sits at $9.30/SF,-1.7 % q/q after a multi-year run-up; warehouse/distribution averages $8.57, flex tops $15.08. Partners Real Estate
- Cushman’s direct asking benchmark registers $7.22/SF, up 61 % since 2020, but growth has cooled to +1.2 % this quarter as landlords lean on TI packages and free rent. Cushman & Wakefield
Micro-trends to watch
- Small-bay & last-mile squeeze – Sub-50 KSF units are near full occupancy; local contractors and e-commerce operators are paying premiums for in-town space. PW DevelopmentWindham Brannon
- Cold-storage runway – Aging inventory and grocery e-commerce growth are prompting speculative refrigerated builds, especially in South Metro and Airport corridors. Knowledge Leader
- Flight-to-quality continues – Class A assets in core submarkets (I-20 West, I-85 North) still command double-digit rent premiums despite the broader slowdown. Cushman & Wakefield
Why this matters for occupiers & investors
- Tenants: Softening rents + richer concession packages equal real leverage—particularly for deals >100 KSF that can absorb 2023-era rate hikes.
- Investors: Limited new starts (7.7 MSF under way, 18 % pre-leased) set the stage for tighter conditions once demand rebounds. Timing entry ahead of a 2026 supply gap could be advantageous. Cushman & Wakefield
Winning in 2025 hinges on micro-market intel, operational empathy, and relational execution. Let’s decode the data and craft a strategy that future-proofs your footprint.
DM me or email recardo@L6RealtyGroup.com to discuss site selection, lease negotiations, or investment opportunities.