Georgia’s industrial real estate market remains resilient in Q3 2025, despite macro headwinds and elevated construction pipelines. With strong logistics positioning, a growing manufacturing base and expanding 3PL/distribution demand, the state continues to attract occupiers and investors alike. Challenges persist—especially in supply-chain adjustments and rising vacancy in certain corridors—but overall fundamentals remain healthy and poised for steady growth.
“Georgia’s industrial market isn’t about flash growth—it’s about logistics, workforce, infrastructure and cost. Get those fundamentals right and you win.” — David Melton, Managing Broker, Pointe Commercial Real Estate
Vacancy / Availability:
Published data for Georgia’s statewide industrial vacancy is limited; however, metro Atlanta gives a strong directional insight. According to research for Atlanta, the direct vacancy rate moved to ~8.6% in Q3 2025 (up ~20 bps QoQ) as of the latest update. This suggests that while Georgia’s premier industrial market (Atlanta) is near ~8–9% vacancy, many non-prime or secondary markets across the state may sit lower or somewhat higher depending on product quality and location.
Rental Rates / Growth:
For the Atlanta industrial market, asking rental rates in Q2 2025 had risen to ~$9.86/SF NNN, up 6.0% from $9.30/SF in Q1. While this is metro-specific, it provides a proxy for Georgia’s industrial corridor pricing. In other parts of the state, rents for functional industrial/distribution should likely fall into a somewhat lower band—perhaps $7-$9/SF NNN for strong product—and maybe $5-$7/SF for less-spec older facilities.
Demand Drivers:
Georgia remains a logistics powerhouse: deep-water port access via the Georgia Ports Authority (Savannah), major interstate corridors (I-75, I-20, I-85, I-16), good rail connectivity and a growing e-commerce/distribution footprint.
Manufacturing: The state continues to attract manufacturing investment, which supports industrial real-estate demand for production-oriented space, suppliers, and distribution.
Distribution / 3PLs: The need for regional hubs with fast access to the Southeast consumer base remains strong.
Infrastructure & cost environment: Georgia’s business-friendly climate, lower cost structure compared with coastal hubs, and ongoing infrastructure improvements (road, intermodal, port) continue to appeal.
“When users want Southeast speed-to-market but not California or Northeast cost, Georgia often comes up in their math.” — David Melton
Typical lease terms across Georgia for mid-box industrial (50,000-200,000 SF) are likely in the 5-10 year range, with smaller flex or manufacturing bays more often 3-5 years. Escalations commonly run 2–3% annually or CPI-linked.
Concessions remain moderate in markets where vacancy is controlling, but product quality is key: clear height (28’–32’+), dock-high loading, trailer courts, yard-parking, and proximity to major highways will drive pricing and fewer concessions. Older or poorly configured buildings may see extended free-rent, tenant improvement (TI) allowances, or more aggressive lease terms.
“In Georgia, the difference between lease-up success and vacancy often comes down to whether the building meets modern specs. Clear height, yard depth, trailer capacity — those are not optional anymore.” — David Melton
Nationally and regionally, industrial construction has been decelerating, which is helping balance supply and demand. In Atlanta, ~17.0 million SF were under construction in Q1 2025, and deliveries were showing signs of moderation. Despite this, Atlanta still has a sizeable pipeline and elevated vacancy, so the risk of oversupply remains alive in certain sub-markets.
Elsewhere in Georgia, speculative development is less prevalent, which may help secondary markets perform better than hubs. Developers and investors must continue to watch for: (a) tenant absorption lag due to macro uncertainty, (b) cost inflation on land/construction driving higher rents, and (c) spot-overbuild in fringe locations.
Atlanta Metro: Strongest industrial hub in the state; latest data shows direct vacancy ~8.6% in Q3 2025 and asking rents near $9.86/SF for top-tier product. Deal-flow volume has slowed; for example, leasing activity dropped significantly from prior years.
Savannah / Ports Corridor: While detailed Q3 numbers weren’t available in the sources reviewed, Georgia’s port infrastructure investment and the logistics-distribution footprint along I-16/US-17 suggest strong tailwinds.
North Georgia & Secondary Markets (Dalton, Macon, Columbus, Augusta): These markets provide value alternatives for occupiers and investors and may offer slightly lower rent bases and vacancy levels—potentially an advantage for cost-sensitive users.
“What many miss is that Georgia’s story isn’t just Atlanta. Secondary markets are quietly absorbing demand and often at better cost basis.” — David Melton
Investors remain focused on industrial assets in Georgia for several reasons: strong logistics fundamentals, demographic growth, and limited alternative asset options for yield. According to a CBRE survey, 37% of investors in 2025 plan to increase investment in industrial/logistics assets. Cap rates are typically wider in Georgia than in premium coastal hubs, but risk-adjusted returns remain attractive.
Focus areas for investors:
Core industrial assets with strong leases, functional specs, and good locations (near intermodal/ports/highways).
Value-add opportunities: older buildings, increasing clear height, adding yard/trailer capacity, upgrading docks/offices.
Exit strategy: Monitor lease roll-overs, tenant credit, renewal risk and overall market absorption—especially given slowing demand in some corridors.
“For investors looking at Georgia industrial, the thesis is: location + specification + lease-term = value. Miss one, and you’ll feel it.” — David Melton
Vacancy – For strong, functional industrial product in Georgia, expect vacancy to hold in the ~7%–9% band or slightly improve if demand stabilizes and deliveries moderate. The Atlanta hub may continue near the upper end of that range; secondary markets may perform slightly better.
Rents – Modest rent growth expected: 2-4% year-over-year for quality product. Lower-spec space may see subdued growth or flat rents due to competition.
Leasing demand – Steady demand from logistics, manufacturing support, e-commerce/distribution users will continue, though deal volumes may remain below peak levels.
Supply risk – Keep an eye on speculative deliveries and older product roll-overs in fringe locations which could put upward pressure on vacancy.
Occupiers & users – Cost-sensitive users will continue to evaluate Georgia’s value proposition, especially in secondary markets with modern specs but lower rents.
Investors – Likely to remain active in Georgia industrial, focusing on product that meets modern demands. However, transaction volume may remain selective until capital markets fully adjust to higher debt/inflation environment.
“From what we’re seeing, Georgia industrial isn’t headed for a cliff, but it’s entering a more balanced chapter. The winners will be the ones who lean into specification, location and term structure—not hype.” — David Melton
Georgia’s industrial market remains structurally sound with strong logistics positioning and manufacturing support.
Product specification matters more than ever. Clear height, trailer parking, dock-loading and access to freight corridors are crucial.
While Atlanta remains dominant, secondary markets offer compelling alternatives for occupiers/investors seeking cost advantage.
Investors must be disciplined on location, lease term and asset condition; values will reward fundamentals.
Occupiers able to lock favorable leases now in modern product may gain cost advantage ahead of any broader rent escalation.
Atlanta industrial market data Q1-Q2 2025: Partners Real Estate Q2 2025 report (vacancy 8.9% Q2; rent ~$9.86/SF)
Atlanta industrial vacancy Q3 2025 referenced via Cushman & Wakefield summary (~8.6%)
Georgia commercial real-estate overview article: “Georgia Commercial Real Estate 2025: The Surprising Trends”
Investment sentiment data from CBRE survey for 2025
Enter your details below and we will be in touch.
Providing Commercial Real Estate Brokerage Services for Chattanooga, Cleveland and Dalton
Office • Retail • Healthcare • Hospitality • Industrial • Warehouse • Land • Multi-Family
