Key Takeaways

  • I-20 West/Fulton Industrial saw the highest absorption gains in the Atlanta market in third quarter thanks to the deliveries of UPS’ new distribution hub; and new build-to-suits for McLane and Southwire.
  • Bulk vacancy has decreased the most this year in the submarket. The rate is down 270 basis points (2.7%) from year-end 2017.
  • The highest rental rate increase in the third quarter occurred in the I-20 West/Fulton Industrial submarket. Warehouse averages are up 2.6% quarter-over-quarter; and 15.5% year-over-year. With a low vacancy rate and limited existing space options, rents here are anticipated to continue moving upwards as demand for space along this corridor remains elevated.
  • The positive results in the year so far has pushed I-20 West/Fulton Industrial’s vacancy rate to its lowest level ever. The submarket is expected to see occupancy gains continue through the remainder of the year, leading to annual absorption topping 4.5 million sq. ft.