- Atlanta continued to post strong occupancy gains this year with the third quarter absorbing another 4 million square feet of industrial space.
- The Northeast Atlanta submarket overtook South Atlanta as the top-performing industrial submarket this quarter with 1.8 million square feet of space absorbed. South Atlanta continues to have the highest year-to-date total at 9.7 million square feet; accounting for 57% of total absorption this year.
- Overall industrial vacancy rose slightly quarter-over-quarter. The increase is attributable solely to deliveries outpacing absorption.
- Following three consecutive quarters with little to no movement, this quarter’s average quoted rental rate declined 0.5% from Q2. This confirms Atlanta’s industrial rents have peaked for this cycle.
- The Atlanta industrial market is on track to exceed 2014’s record net absorption of 22.6 million square feet.
Atlanta Industrial Market
The Atlanta industrial market posted its third consecutive quarter with absorption over 4 million square feet in Q3, bringing the year-to-date total to just over 17 million square feet. This annual total keeps Atlanta atop the nation in terms of net absorption. It also puts the market in range of breaking its record year of absorption of 22.6 million square feet set back in 2014. As has been the case with the two previous quarters, Q3’s occupancy gain mostly took place in Atlanta’s two largest submarkets: Northeast Atlanta and South Atlanta. Combined, these submarkets accounted for 85% of the quarter’s absorption total. For Northeast Atlanta, the largest occupancies took place in the Jackson County area of the submarket.