Atlanta industrial market ended the second quarter more robust than the previous period.
- Following Q1's moderate performance, Atlanta's industrial absorption was much stronger in the second quarter totaling just under 4.3 million square feet.
- Build-to-suits for GE Appliances and Loloi Rugs were the largest occupancies this quarter. Move-ins by smaller tenants under 100,000 square feet were the most prevalent though.
- The overall industrial vacancy rate showed no change quarter-over-quarter due to the closely matched levels of delivered square feet and absorption. Northeast Atlanta, particularly in the I-985/Jackson County area of the submarket, saw the largest rate decline in Q2.
- Industrial deliveries totaled 4.8 million square feet this period bringing the year-to-date total to 10.2 million square feet. Construction activity is above 20 million square feet for the fourth time in a year and a half.
- Atlanta's average industrial rent increased yet again this quarter. Rents stagnated, however, in Northeast Atlanta and South Atlanta.
- The pick up in absorption validates the continued expansion of Atlanta's industrial market. Steady occupancy gains should continue through the end of the year.
Atlanta Industrial Market
Atlanta's industrial market ended the second quarter more robust than the previous period, posting absorption gains in line with average quarterly levels witnessed over the past eight years. Taking this into account, a total of 5.3 million square feet of industrial space has been absorbed as of mid-year. Most of the move-in activity in Q2 came from saller tenants under 100,000 square feet. This is a positive sign since it shows growth remains strong for this group. The largest occupancies in the quarter came from two -build-to-suits. GE Appliances (a division of Haier) moved into its 1,099,880 square-foot distribution center in Jackson County creating 100 jobs with the investment. The new southeast regional center will give the company the ability to deliver its products to 90 percent of U.S. homes in three days or less. The second largest occupancy in second quarter was Loloi Rugs which moved into 647,403 square feet in Northwest Atlanta. The rug and home furnishings wholesaler is expected to create almost 200 jobs and will use the new location as its southeast regional distribution hub.