Atlanta Industrial Real Estate Report
Atlanta’s industrial market experienced a record-breaking first quarter with a significant amount of overall net absorption, a falling vacancy rate and an increase in overall asking rents.
- Metro Atlanta experienced nearly 6.4 million square feet of positive absorption, the highest amount ever recorded in Atlanta’s history.
- The Interstate 20/Fulton industrial submarket saw the highest level of absorption with 2.6 million square feet of overall net absorption.
- Overall asking rents jumped from $4.20 per square foot to $4.31 per square foot quarter-over-quarter, the highest since the second quarter of 2003 when asking rents reached $4.35 per square foot (monthly measurement).
- Meanwhile, vacancy dropped from 9% to 8.7%. The biggest lease signed was Wayfair’s 846,496 sf deal at King Mill Distribution Park, followed by Google’s data center expansion of 400,000 sf for a total of 898,355 sf at 310 Riverside Parkway.
- Atlanta had 6.27 million sf of completions in the first quarter, the fourth most ever recorded. In spite of the deliveries, there is still 15.48 million square feet of industrial space under construction, the largest of which is a speculative warehouse and distribution center on Anvil Block Road that has the potential to be 1.47 million square feet Investment sales also made a strong showing in the first quarter with 6 million sf of industrial product trading hands.
Positive signs from the first quarter point to a strong remainder of 2017.
SOURCE: “Why This Atlanta Market Is Hotter Than Ever” – May 17, 2017, By Jennifer LeClaire, Cushman-Wakefield.