Atlanta’s industrial market has been picking up steam over the past several quarters, and 2Q 2016 was no exception. When C&W Research compared it to the country’s other major markets, it was clear Atlanta is among the strongest industrial markets in the U.S.
According to Cushman & Wakefield’s latest national Marketbeat report, Atlanta’s 5,330,950 square feet of net absorption in the second quarter was the sixth most among all major markets, with California’s Inland Empire (near Los Angeles) hitting 11,816,44 to lead all markets.
And that has the potential to continue, as Atlanta also sits third in the country with 16,514,665 square feet under construction and on the way to being delivered to the market. Only Dallas/Fort Worth (23,854,005) and Chicago (17,049,915) have more industrial product under construction as of 2Q 2016. This means supply should grow in the upcoming quarters, helping to keep asking rents low.
Atlanta’s current overall asking rents, which are some of the lowest in the country, are helping to drive high leasing activity and absorption numbers. We expect the vacancy rate to rise slowly over the next few quarters, as the majority of projects that are under construction are expected to deliver in 2016 and 2017, and they will deliver empty.
For more from C&W Research on national industrial numbers, including where Atlanta stands on vacancy rates and year-to-date deliveries, download the full report here.