Georgia Warehouse Leasing Hits Record as Construction Doubles

Owners and buyers near Georgia's industrial corridors should expect more warehouse construction and manufacturing activity nearby.

Updated on Nov. 6, 2026 in Commercial

Isometric editorial illustration of raw steel-framed warehouse shells, concrete panels, and a tower crane on a flat red-clay lot beneath a pine treeline. — Metro Atlanta industrial landlords recorded record leasing of 6.7 million square feet in the third quarter, more than double the prior quarter, as manufacturers led demand. AI Illustration. Upload story photo >

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Metro Atlanta industrial landlords recorded record leasing activity in the third quarter, with net absorption reaching 6.7M square feet, more than double the second quarter. The surge is most relevant to Georgia's warehouse and manufacturing corridors, where tenants are leasing larger blocks of space.

Why it matters

Companies are leasing more and larger blocks of warehouse and industrial space as U.S. manufacturers accelerate output to meet rising demand for metal and electronic products. For Georgia households, that means more industrial construction, more jobs tied to logistics and manufacturing, and continued pressure on land and property values in the corridors where this building is concentrated.

TikTok, Google and Nike each leased 1M SF during the third quarter, while Genuine Parts leased 825K SF at the Great Valley Commerce Center off Interstate 75 and Siemens leased 772K SF at Jackson 85 Distribution Center. Developers began 17 new warehouse projects totaling 4.2M SF in the third quarter alone.

The players

CBRE

A global commercial real estate services firm whose market reports track leasing, absorption and construction trends across U.S. industrial markets.

Prologis Research

The research arm of Prologis, the large industrial real estate developer, which publishes forecasts on warehouse and data center demand.

Link Logistics

An industrial real estate investment firm whose projections on manufacturing-driven warehouse demand shape regional development planning.

Logistics Property Co.

A developer whose Covington and I-95 corridor projects are now majority-leased to manufacturers, illustrating the sector's shift in tenant mix.

Audi

The German automaker whose planned $4B factory in middle Georgia would add major manufacturing capacity to the state.

The details

Industrial landlords are fielding increased demand from manufacturers and from companies that service them, and CBRE said the leasing is being driven by big-box tenants in third-party logistics, automotive supply chain and infrastructure spaces. Over two-thirds of tenants in Logistics Property Co. developments in Covington and along the I-95 corridor are manufacturers. Earlier in 2025, tariff uncertainty caused tenants to place requirements on hold, which helps explain why the third-quarter rebound was so sharp once those decisions moved forward.

Tariff uncertainty in 2025 caused tenants to put leasing requirements on hold.
Third quarter 2026 saw record leasing activity and 17 new warehouse projects begin.
Prologis Research projects data center demand could account for up to 40M SF of leasing in 2026.
Audi announced plans for a $4B factory in the middle of Georgia in October 2026.

The Home Front

The surge in Georgia industrial leasing sits alongside a sharp rise in new construction, with nearly 13M SF now under development, up 105% year-over-year. It marks a clear departure from the tariff-driven pause of 2025 and places Metro Atlanta among the fastest-growing industrial markets in the country.

If you are weighing a move or a home purchase near Covington, the I-95 corridor or the Interstate 75 industrial belt, check how new warehouse construction nearby could change traffic, noise and nearby land values. Ask a licensed local real estate agent to pull current zoning and development records for the specific area before you decide.

The takeaway

Industrial growth in Georgia is now being driven by manufacturers and supply-chain tenants, so the land use around your neighborhood may keep changing. Keep an eye on local planning and zoning notices if you live near a major corridor, and consult a licensed professional before making decisions based on that outlook.