Atlanta is a top-tier industrial market serving as the economic center of the Southeast and a critical distribution hub for the U.S. economy. The Transportation & Warehousing industry is one of Atlanta’s largest employers with 150,600 jobs, and has seen 29% job growth since 2012.
Atlanta’s industrial leasing activity reached its highest level in a year with just shy of 6.5 million square feet (msf) signed during Q2 2019. This activity is in line with the 6.6 msf leased in Q2 2018 and outpaces the previous quarter’s total of 4.4 msf. In keeping in line with demand, the overall inventory of industrial space in Atlanta has increased by 2.3% this year with over 10 msf of new development added in the first half of 2019. With another 16.5 msf of space under construction, 2019 is likely to be the fourth straight year with more than 17 msf of new space added to the total industrial inventory.
Historically high new-product construction levels have led to increased vacancy rates, and this is likely to continue for the next year or two. However, Atlanta’s industrial market remains tight compared to its long-term historical averages. The national and local prospects for warehouse and distribution demand—driven by eCommerce—remain positive. Check out the infographic below for more quick facts on Atlanta’s industrial market.