The delivery of Southern Gateway B, a 1.1 million square-foot distribution center, contributed to the South Atlanta industrial submarket's slight uptick in vacancy in the second quarter of 2019.
- Industrial absorption was steadily positive in South Atlanta in Q2 bringing the year-to-date total to just under 1.6 million square feet.
- Move-in activity from tenants under 300,000 square feet were the most active in the submarket this quarter. Additionally, the largest leasing transactions were mostly in the mid-sized range between 200,000-500,000 square feet.
- Only two major buildings delivered in South Atlanta this quarter, with the largest being the speculative Southern Gateway B building. The 1.1 million square-foot distribution center contributed to the submarket's slight uptick in vacnacy in Q2.
- The submarket's average industrial rental rate decreased for the first time in over two years. This is most likely due tot he substantial increase in available space here; the highest amount since 2011.
- The remainder of the year appears to be fairly strong for South Atlanta as a number of large occupancies are set to occur.