Atlanta’s industrial market recorded nearly 20 million square feet of leasing in Q3, its strongest quarter on record. In the office market, renewals led steady leasing activity, while tenant givebacks pushed vacancy higher, according to the latest reports from Lee & Associates – Atlanta.

“In the final weeks of the quarter, we were tracking a lot of leases being signed, both in total square footage and deal count. Activity picked up quickly, helping drive a record leasing quarter,” said Kate Hunt, Research Director at Lee & Associates -Atlanta.

Industrial leasing included three new deals of at least 1 million square feet. Because many leases were signed as the quarter drew to a close, the surge has not yet fully appeared in occupancy data. Net absorption reached a healthy 2.6 million square feet, and vacancy rose 10 basis points to 9.0%, partly reflecting 2.7 million square feet of new deliveries. Eleven groundbreakings added nearly 4 million square feet to the pipeline, bringing space under construction to 13.6 million square feet. Average asking rents reached $8.49 per square foot.

“The next measure will be how quickly these signed leases translate into occupied space. The volume of late-quarter activity gives us reason to expect above-average occupancy gains over the next three to six months,” Hunt said.

Office leasing totaled approximately 1.5 million square feet, with renewals accounting for much of the activity. Net absorption was negative 909,457 square feet, and vacancy rose 40 basis points to 25.1%. The quarter’s only delivery was 1072 W Peachtree St NW, a 224,000-square-foot Class A building. With no office space under construction, the market’s focus remains on how existing buildings can compete for tenants and work through available space. Average asking rents edged up to $31.07 per square foot.

“Renewals kept leasing activity steady, but the market is still absorbing space
givebacks. With no new office development underway, landlords will need to keep aligning their buildings with what tenants value: location, quality and flexibility,” Hunt said.

The full Q3 2026 Atlanta Industrial and Office Market Reports are available from Lee & Associates – Atlanta. Read the full reports.