Written by Steven McGee, CCIM, Vice President – Southeast Market Officer
The Interstate 85 corridor, from Atlanta to Raleigh, will account for nearly 30 million people and over $1.5 trillion in GDP within the next five years. We believe this economic region, known as the Piedmont Atlantic megaregion, will represent the bulk of new industrial developments through the remainder of this decade.
Several contributing factors have led to this projected growth. At the macro level, global economic issues are bringing manufacturing and distribution closer to home. The US is projecting a 15 percent increase in domestic high-end manufacturing and logistics in just the next three years. (Interact Analysis, 2024)
At the regional level, three key strategic advantages support industrial investment: strong infrastructure, business-friendly environments, and diverse, value-added areas of capability and expertise. For example, Charlotte has a strong financial industry; Raleigh excels in technology and education, and Atlanta is an economic powerhouse with the world’s busiest airport. In between are cities and jurisdictions hoping to continue investments in manufacturing and distribution. During the 2010s, the average building size along the I-85 Corridor increased from 50,000 square feet to over 300,000 square feet, with much of the growth related to advanced manufacturing. (CoStar, 2021)
Atlanta stands out as a pivotal player
Conor is particularly bullish about Atlanta. It is North America’s fifth-largest big-box industrial market, boasting nearly 400 million square feet of total inventory (CBRE, 2024). While 2024 deliveries outpaced absorption, the decrease in new supply should help level the vacancy rate. The current under-construction pipeline is approximately 20 million square feet, about five million square feet below the 10-year historic norm for the Atlanta industrial market. (Avison Young, 2024)
The region’s sustained demand for industrial space led to Conor’s decision to open an office in Atlanta and source new opportunities locally. By staying attuned to market dynamics and emerging trends, we can identify and capitalize on opportunities in this vibrant sector.
Please contact me for more information about our plans in the Southeast. We are currently seeking land for industrial opportunities in the greater Atlanta area and along the I-85 corridor.
