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.
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:
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:
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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