The Atlanta industrial market experienced a record-breaking first quarter with a significant amount of overall net absorption, a falling vacancy rate and an increase in overall asking rents. The Atlanta market experienced 6.4 million square feet (sf) of net absorption, the highest amount ever recorded in Atlanta’s history. The previous record of 6.1 million square feet was set in the fourth quarter of 2014. The I-20/Fulton Industrial submarket dominated absorption to start the year with 2.6 million square feet of overall net absorption. Google’s move into its 800,000-square-foot data center expansion coupled with Shipper’s Warehouse’s move into 540,000 square feet of warehouse space accounted for the majority of positive absorption in the I-20/Fulton Industrial submarket. First quarter 2016 marked the 16th consecutive quarter with at least 1 million square feet of net absorption.
Leasing activity to start 2017 increased by nearly 2 million square feet year-over-year with 6 million square feet of space leased this quarter compared to 4.1 million square feet leased in the first quarter of 2016. This is an impressive 45 percent increase in leasing activity year-over-year. The Northeast lead all submarkets with 1.7 million square feet of leases signed in the first three months of the year, followed by the I-20/Fulton Industrial submarket with 1.1 million square feet of leases signed.
To view the entire Q1 Atlanta industrial report, click here to visit the Market Research page.