This year’s first quarter brought a continuation of prevailing trends from the end of 2024. Construction is still near historic lows as markets deal with recent oversupply, but rents continued climbing across 29 out of 30 markets in our study. Still, no news may be good news for industrial real estate, as the market could soon be faced with the effects of policy uncertainty in global logistics and manufacturing. 

In Q4 2024, industrial real estate remained one of the steadiest sectors, with pipelines slowing and vacancies rising at a measured pace. The market continued absorbing the record-breaking developments of previous years.

CommercialCafe’s latest Q1 2025 Industrial Report has been released, spotlighting the strongest-performing markets across the country. 

In Q1 2025, Atlanta placed 13th nationally for industrial market performance:

• Atlanta currently has the 8th-largest volume of industrial space under construction nationwide, with approximately 8.7 million square feet in the pipeline — poised to grow the market’s inventory by 1.5% when it comes online.

• The metro also saw 1.28 million square feet of industrial space delivered in Q1 2025, marking the 10th-highest expansion by total square footage. This new supply increased Atlanta’s industrial footprint by 0.2%.

Additional key highlights:

• Phoenix continues to lead as the strongest industrial market nationwide, with Houston and the Inland Empire following closely behind.

• Vacancy rates rose in 21 out of 30 major markets, now ranging from 5.1% in Bridgeport to 11.5% in Miami.

• The total industrial pipeline across the top 30 markets is 186.3 million square feet, a slight decrease from Q4 2024's 188.2 million.

• Seven markets saw average sale prices per square foot in excess of $200.

• Only 3% of industrial real estate loans in Memphis, Tenn., are set to mature this year, earning the metro top scores in this category.

For an in-depth analysis, read the full CommercialCafe report visit https://www.commercialcafe.com