Atlanta’s Warehouse Market Shifts: Short-Term Leases Take the Lead

In Atlanta, warehouse tenants are changing how they sign leases.

 Big companies used to lock in 7–8 year terms for stability. Now, most prefer shorter deals to stay flexible.（costar.com）

Atlanta’s Warehouse Lease Terms Are Shrinking

For warehouses over 100,000 sq. ft., the average lease is now about 5.5 years — down 20% from the pre-pandemic average of nearly 7 years.

 This shows that companies value flexibility over long-term security, adjusting faster to market shifts and supply-chain changes.

Smaller spaces haven’t followed the same pattern — their lease terms remain steady or slightly longer, showing that big and small tenants are thinking very differently.

Why Shorter Atlanta’s Warehouse Leases?

1. Higher Vacancy – Large warehouses now have a 13.6% vacancy rate, up from 10.9%, giving tenants more choices and stronger bargaining power.

2. More Subleases – About 16% of big-box space is offered for sublease, compared to 11% in smaller buildings. Sublease rents are around 16% cheaper, which pulls overall rents and lease terms down.

As of Q3 2025, rents for large warehouses fell 0.4%, while smaller spaces rose 3.1%.

A Tenant-Driven Market

With more available space and active subleasing, Atlanta’s warehouse market now favors tenants.

 Instead of signing long leases, companies focus on cost control and flexibility.

In today’s unpredictable economy, a shorter lease isn’t a risk — it’s a strategy.