Key Takeaways

  • Big-box absorption reached the 3 million sq. ft. mark for a third consecutive quarter, bringing the year-to-date total to just over 10 million sq. ft. This is the highest level ever recorded for Atlanta’s big-box market heading into the final quarter of the year. Over half of this year’s net absorption has come from buildings built in 2017.
  • Despite Q3’s continued positive activity, the overall vacancy rate for Atlanta’s big-box product increased to its highest point in four years. The uptick can be tied directly to the amount of new space added which totaled 5.2 million square feet this quarter. Of this amount, 37% delivered on a speculative basis.
  • Like the overall industrial market in Atlanta, big-box product has begun to see asking rents level off. The overall average has hovered around the $3.45/sf mark all year.
  • Market fundamentals continue to be defined by the persistent demand for big-box industrial here. Atlanta is projected to see record net absorption in 2017.