Atlanta’s industrial market has been strong all year, and the third quarter did nothing to slow that down. The 18.9 million square feet under construction is the most ever recorded in Atlanta history, and the metro area is ranked third behind Dallas and Chicago for the nation’s highest number of construction activity.
In addition, Atlanta’s industrial market is on pace to break another record. Speculative completions through the third quarter were at 9.1 million square feet, while build-to-suit completions are at 1.9 million square feet. That adds up to a total of 11 million square feet, which sets up well to move past the previous annual record of 14.8 million square feet, set in 2000.
While the vacancy rate (8.6%) is slightly up and the average asking rent ($4.17) is slightly down year-over-year, net absorption was up 9% to 2.2 million square feet from 3Q 2015. Also, leasing activity grew to 17.6 million square feet so far in 2016, with 7.4 million square feet of that coming in the third quarter.
For much more on the Atlanta industrial market for the third quarter, including Cushman & Wakefield’s forecast headed into 2017, click here to download the full Atlanta Industrial Marketbeat Report.