Following a solid year of activity in 2019, Atlanta's big-box market starts 2020 off barely in positive territory, absorbing a net total of only 56,000 square feet in the first quarter.
- The first quarter was somewhat of an off-period with occupancy activity mostly coming from tenants under 350,000 square feet.
- The small amount of space absorbed, combined with just over 4.2 million square feet of space delivered, the big-box vacancy rate increased 170 basis points (1.7%) quarter-over-quarter, and 240 basis points (2.4%) year-over year.
- In spite of the unexpected start, big-box leasing was strong. The market has already seen four transactions over 1 million square feet. Amazon was the most active prospect, accounting for three of the four deals.
- It is yet unclear how the COVID-19 pandemic might affect Atlanta's big-box market; however, it would appear the metro area's diverse industry makeup could shelter it from an adverse outcome.