November 27, 2017
ATLANTA – Atlanta reported an industrial vacancy rate of 7.2 percent at the close of third quarter 2017 after seeing 15.3 million square feet of new deliveries to date this year, more than 60 percent of which is leased. According to Transwestern’s third-quarter 2017 Atlanta industrial market report, demand is strong for quality product, causing a continued uptick in absorption and construction.
“High demand in the industrial sector – a reflection of Atlanta’s top-performing job growth in the nation – has driven the pace of construction and pushed asking rents upward,” said Keith Pierce, Senior Research Manager with Transwestern. “New construction in 2017 is on pace to exceed 2016 and report a record year. The bulk of construction is in South Atlanta and the Northeast, which are both experiencing historically low vacancies.”
Third-quarter average asking rent of $3.90 per square foot, unchanged from second quarter, is the highest reported in Atlanta in 15 years.
Additional highlights from Transwestern’s third-quarter 2017 Atlanta industrial report include:
· Vacancy rose slightly to 7.2 percent in the third quarter due to the delivery of new product outpacing demand in the short term. During 2017, vacancy is down half a percentage point, as demand has been stronger than new product deliveries.
· As of third quarter, the Atlanta industrial market has already seen higher demand than it did in all of 2016. Absorption remained strong in the third quarter, following an even more impressive second quarter, and the market is on track to enjoy its strongest annual demand in years if absorption trends hold steady in the fourth quarter.
· The strongest quarterly absorption was seen in the traditional industrial strongholds of South Atlanta and the Northeast. In fact, for the year to date, South Atlanta has seen nearly two-thirds of the Atlanta market’s demand, as well as most of its new construction.
Download the full report at: https://tinyurl.com/transwestern-atl-3Q2017Industr.
Transwestern is a privately held real estate firm of collaborative entrepreneurs who deliver a higher level of personalized service – the Transwestern Experience. Specializing in Agency Leasing, Tenant Advisory, Capital Markets, Asset Services and Research, our fully integrated global enterprise adds value for investors, owners and occupiers of all commercial property types. We leverage market insights and operational expertise from members of the Transwestern family of companies specializing in development, real estate investment management and research. Based in Houston, Transwestern has 35 U.S. offices and assists clients through more than 180 offices in 37 countries as part of a strategic alliance with BNP Paribas Real Estate. Experience Extraordinary at transwestern.com and @Transwestern. For updates from the Southeast region, follow @TranswesternSE.