ATLANTA—Upward momentum. Those are the best words to describe Atlanta's industrial market in the first quarter.

A new JLL report reveals lower vacancy rates and modest rental increases. Based on these two factors, along with tenant's desires for bigger, newer spaces, JLL reports an increase in industrial construction activity in Atlanta. Developers are considering a number of avenues to secure land for industrial use in desirable areas.

“The spigot is open for new development, and the focus is on bigger box spaces,” says Mike Sivewright, JLL's market director for the Atlanta region. “While build-to-suit projects still meet much of the need, speculative projects continue to become more pervasive.”