- At 7.2 million square feet, the Atlanta industrial market topped the nation in space absorbed this quarter.
- South Atlanta remained solid in Q3 with net absorption totaling over 2.4 million square feet. The I-20 West/Fulton Industrial submarket, however, saw the most positive gains thanks to the deliveries of UPS’ new distribution hub, and also McLane’s and Southwire’s build-to-suits.
- As occupancy gains outpaced the amount of product delivered, Atlanta’s industrial vacancy rate experienced its second consecutive quarterly decrease. It is now at its lowest level ever recorded.
- Deliveries totaled 4.5 million square feet in Q3 bringing the year-to-date total to 13.7 million square feet.
- The overall increase in Atlanta’s industrial rental rate took a breather this quarter, up only 0.9% from the end of Q2. Warehouse rents fared a little better increasing 1.2% from last quarter.
- Following the strong quarter, Atlanta’s industrial market is expected to finish well ahead of absorption projections this year.
Atlanta Industrial Market
Third quarter stats collected by Colliers International show the Atlanta market absorbing the highest amount of industrial space in the nation this quarter. The 7.2 million square feet absorbed is also the highest the metro area has seen since the first quarter of 2017. Occupancy gains in Q3 were mostly isolated to Atlanta’s big three industrial submarkets with I-20 West/Fulton Industrial leading the way. The submarket absorbed its highest amount of space ever in a quarter at 3.2 million square feet. The major contributors to this were UPS, McLane, and Southwire. Each of these companies occupied newly delivered space in Q3.