- The Atlanta industrial market finished the year with 22.6 million square feet of total net absorption; just shy of the record set back in 2014 of 23 million square feet.
- The strong year of occupancy gains resulted in Atlanta’s overall industrial vacancy rate decreasing 80 basis points (0.8%).
- South Atlanta was the most active industrial submarket this year accounting for almost half of the space absorbed, and delivered in 2017. It also comprises over 50% of the industrial space currently under construction.
- After roughly a year’s worth of no movement; and under the assumption it had peaked, Atlanta’s average industrial rent jumped 2.2% in the fourth quarter to $4.23/sf NNN.
- The robust activity in Atlanta’s industrial market is not expected to subside anytime soon. Occupancies next quarter are projected to top almost 4 million square feet. This will be the start to yet another strong year of gains in 2018.
Atlanta Industrial Market
With absorption totaling 5.4 million square feet in the fourth quarter, the Atlanta industrial market ended the year just shy of its annual record of 23 million square feet absorbed in 2014; coming up only 400,000 square feet short. 2017 marked an impressive year of industrial activity in Atlanta. Not only were absorption levels the highest they have been in three years, but the market also finished the year with the second highest amount of space absorbed in the country according to Colliers International data. Throughout 2017, Atlanta led the nation in industrial space absorption; however, in the fourth quarter it was surpassed by Dallas which absorbed close to 9 million square feet in the final three months of the year.