Across the nation, the commercial construction market has been cooling. And while data for Atlanta largely tracks with that trend, the regional pipeline remains strong for logistics and distribution projects, manufacturing facilities and data centers. In fact, construction in these sectors is helping to keep Atlanta among the most active industrial markets in the country.
Across the United States, deliveries of new industrial space fell to 59.5 million sq. ft. in the second quarter of 2025—the lowest since 2019—while the overall pipeline contracted to 241 million sq. ft. under construction, the lowest level since late 2016, according to global commercial real estate manager Jones Lang LaSalle.
Impact of the Overall Slowdown
As a result, the blog at CoStar real estate analytics firm notes that developers across the country are pivoting from speculative projects toward pre-leased, demand-driven builds. Atlanta’s construction landscape reflects this shift.
A few years ago, Atlanta’s overall industrial construction pipeline peaked near 50 million square feet. But as of June 2025, there were between 8.6 million and 17 million sq. ft. under construction—depending on which market analysis you read.
According to Lincoln Property Co.’s Metro Atlanta Industrial Report, the amount of space under construction was at its lowest point since 2014, while industrial vacancies rose from 8.1% in Q1 2025 to 8.9% in Q2. This is why speculative projects are harder to finance and fill.
On the other hand, a first-quarter market report from Partners Real Estate noted active construction on 2 million sq. ft. of industrial flex space in the region, along with 4.2 million sq. ft. of manufacturing space and 10.9 million sq. ft. of warehouse/distribution space.
Despite the discrepancy, Atlanta remains a national leader in leasing activity. Cushman & Wakefield reports that Atlanta’s 6.7 million square feet of newly leased industrial space during the first three months of 2025 ranked fourth in the nation—behind California’s agricultural Inland Empire, Dallas and Los Angeles. Atlanta’s demand is being driven by manufacturing facilities, third-party logistics (3PL) operations and data centers.
Here are some examples of newer industrial, logistics and data projects in the region:
- Porter Logistics Atlanta 3PL Warehouse – Facility 2: 330,000 sq. ft. indoor/outdoor warehouse for lumber and other bulk commodities.
- GreenBox Automated Warehouse in Butts County: 1 million sq. foot., $144 million automated warehouse using robotics/AI for logistics.
- Flock Safety – Smyrna Facility: 97,000 sq. ft. manufacturing, $10 million manufacturing facility.
- Rivian Georgia EV Plant: 16 million sq. ft., $5 billion manufacturing campus for electric vehicles, built in phases.
- Microsoft Data Center Campus – Union City: 2 million sq. ft., $1.8 billion multi-structure data center, built in phases.
- Project Bunkhouse – Bartow County: 8.7 million sq. ft., $19 billion data center campus in early development stages.
- Project Turbo – Hall County: 900,000 sq. ft., $1.2 billion data center campus 55 miles northeast of Atlanta.
Less Speculative, More Strategic
As speculative projects become difficult to fill, developers are changing their approach. Much of Atlanta’s industrial activity today is designed to serve specific tenants, or is being built to suit that narrow range of high-demand uses, according to CoStar.
The takeaway for builders and contractors is that the Atlanta metro area is no longer in a high-growth sprint, but it remains better off than much of the country for:
- Retrofit and repair work: With fewer new speculative warehouses, expect demand for tenant improvements, retrofits and maintenance.
- Tenant-fit projects: Rising vacancy means landlords are competing for tenants. Contractors who can deliver quick, cost-effective tenant improvements will be in high demand.
- Manufacturing and logistics expansions: Even with cooling elsewhere, manufacturing and 3PL firms continue to lease new space.
- Pre-leased builds: Developers are focusing on projects with secured tenants. Contractors who can demonstrate reliability and efficiency will be well-positioned to win this work.
The Bottom Line
Atlanta’s industrial market has cooled from its rapid-growth peak, but the fundamentals remain strong. The metro still ranks among the top U.S. markets for leasing, especially in logistics and manufacturing. For smaller, independent construction companies, the opportunity lies not in chasing volume but in aligning with demand-driven, tenant-specific projects.
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