- Once again, South Atlanta was the most positive industrial submarket of the quarter accounting for just under 90% of the net total market absorption. Additionally, most of the new leasing activity in Q1 took place here.
- The I-85 South/Airport area of the submarket had the largest occupancies this quarter with Blue Buffalo, Trane US, and Kuehne + Nagel each moving into spaces over 300,000 square feet.
- Despite the positive quarter, warehouse vacancy increased by 40 basis points (0.4%). Like the market as a whole, this is due to the amount of newly delivered space outpacing absorption in the quarter.
- Construction activity remains highest in the South Atlanta submarket. Although 1.7 million square feet of deliveries occurred in Q1, the submarket saw another 2.2 million square feet break ground this quarter.
- The submarket is expected to lead the Atlanta market yet again this year given sustained demand for space here.