Atlanta Industrial Sublease Market Observation - May 2023
The Atlanta commercial real estate market has experienced a significant increase in available industrial sublease space over the past year. The impact of the COVID-19 pandemic and the growth of the e-commerce industry are the main contributing factors. The significant growth of the e-commerce industry in Atlanta has increased demand for industrial space, leading to new warehouse development. Businesses who over forecasted their real estate needs are now shedding excess space to recover costs. This gives other tenants who are looking for space shorter term options at below market rates.
According to recent CRE data, the total amount of available sublease space in the Atlanta industrial market has increased over 1103.98% from Q1 2022 to Q2 2023, with over 8.3 million square feet available. Currently two of the largest subleases on the market are at 1625 Oakley Industrial Blvd. for 907,627 SF, and 405 King Mill Rd. for 550,800 SF. The recent bankruptcy announcement from Bed Bath & Beyond has also added another 811,000 SF of sublet space to the market. Several benefits make subleasing a cost-saving option that businesses may consider, including lower rent rates, shorter lease terms, and access to existing infrastructure. This alternative offers companies the ability to operate in a suitable location with reduced financial burden, making it an appealing option for those seeking to optimize their budget and resources.