Atlanta's Big Box Industrial Market
Author: Scott Amoson
- First quarter absorption in Atlanta’s big-box industrial market was bolstered by delayed occupancies from the end of last year. In total, over 3.9 million square feet of big-box space was absorbed in Q1.
With positive absorption outperforming product delivered, the overall vacancy rate in Atlanta’s big-box market dropped to 10.8%, down almost 100 basis points from last quarter.
Average asking rates are up 1.8% from last quarter in Atlanta’s bigbox market; and 4.8% year-over-year. Although rents appear to be moderating overall in Atlanta’s industrial market, big-box product is expected to continue seeing quarterly rental rate increases; at least through the remainder of the year.
As demand remains strong, Atlanta’s big-box market is poised for a robust year. Around 4-5 million square feet of absorption is anticipated in the second quarter. Recent leasing is expected to supplement occupancy levels in the back half of 2017 which could lead to Atlanta’s strongest year ever for big-box product.