Strong wage gains are fueling a healthy increase in consumer spending in metro Atlanta, which boosts eCommerce and traditional brick-and-mortar retail, and, by extension, logistics and distribution. To meet demand, developers continue to build new facilities. As a result, industrial construction completions in 2018 reached an all-time high, with over 18 million square feet (msf) of new space delivered. This marks the first time the Atlanta industrial market has posted three consecutive years with annual deliveries over 17 msf.
Industrial vacancy, which totaled 7.7% in the fourth quarter, is within 70 basis points of the lowest vacancy on record. The fourth quarter of 2018 was Atlanta’s second consecutive quarter of declining vacancy. With record leasing activity, we anticipate that vacancy will continue to tick down in 2019.
For more, check out our five fast facts for the Atlanta industrial market below.