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Stronger than Expected Q3 Results for Atlanta Industrial

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Atlanta's industrial absorption was better than expected in the third quarter of 2019.

Key Takeaways

  • Piggybacking off of last quarter’s return to average levels, the Atlanta industrial market experienced a stronger than expected third quarter, absorbing just over 6.2 million square feet.
  • South Atlanta finished Q3 back in the top spot. The submarket saw big tenants such as PVH Corp (982,777 SF), Coca-Cola Bottling (415,000 SF), and CEVA Logistics (400,000 SF) take occupancy.
  • For the first time in five quarters, Atlanta’s overall industrial vacancy rate saw a slight decline over the previous quarter; albeit by only 10 basis points (0.1%).
  • The deliveries of Pendergrass Commerce Center and Bridgeport bring the number of 1 million-plus square foot buildings added to the market this year to 6. Currently, only one of these buildings is leased.
  • The average industrial rent for Atlanta reached another record high this quarter increasing to $4.85/sf NNN.
  • Atlanta is on track for a solid year of occupancy gains, and will meet the annual projected total of 13-14 million square feet absorbed.

Atlanta Industrial Market

Atlanta’s industrial absorption was better than expected in the third quarter with the net total topping 6.2 million square feet; the highest quarterly amount since this time last year. Additionally, as confirmed by Colliers International, Atlanta had the second highest amount of space absorbed nationwide in Q3, trailing only Chicago. This quarter’s positive results were tied to a number of anticipated occupancies, the largest being PVH moving into almost 1-million square feet in South Atlanta and Stitch Fix moving into 925,800 square feet in the I-20 West/Fulton Industrial submarket. In fact, these two submarkets were where most of the absorption activity occurred this quarter, collectively
accounting for more than 90% of the market’s total. As it relates to the size of tenants taking space in Q3, a strong number of move-ins between 100,000 to 400,000 square feet, and ample activity from smaller industrial users occupying under 100,000 square feet helped push absorption levels beyond the anticipated total. These two factors signify a healthy industrial environment despite some slowing of larger leases in the market.


3Q19_Industrial

Stronger than Expected Q3 Results for Atlanta Industrial

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Related Experts

Scott Amoson

Director - Research

Atlanta

Scott is the Director of Research for Colliers International in Atlanta, Georgia.  In his role, Scott supports all of the company's brokers in the Atlanta office.  He also manages the Research Associate in the company, and mentors an intern annually during the summer.

Scott began his real estate career in 2000 as a research assistant with Richard Bowers & Co., a local brokerage firm.  He joined Colliers International in Atlanta in 2003.  Scott specializes in aiding the company's clients with geographical, informational and analytical research.  With his extensive knowledge, he provides customized research data including:  market trends, lease and sales comparables, plats/ownership information, demographics, prospect information and economic information.  In addition to supporting the company's brokers and staff, his other responsibilities include compiling and writing quarterly market and submarket newsletters, maintaining the company's internal database of over 10,000 sales and lease transactions, and tracking news/trends related to Atlanta's commercial real estate market.  He is frequently called upon by local news sources for his knowledge and expertise of real estate matters in Atlanta.

As a member of the Colliers International Research Council, he advises on quarterly conference calls and provides valuable input on matters directing the research platform for Colliers International.  Scott was recently selected as the Research Ambassador for the Southeast Region as a part of Colliers International's Centers of Excellence platform.

Scott is a native of Atlanta, and enjoys spending time with his wife Lupe and daughter Sienna.  He is an avid golfer and loves vacationing with family.

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Harrison Marsteller

Vice President, Principal

Atlanta

Harrison Marsteller began his career at Colliers International in Atlanta soon after graduating from University of Alabama with a BBA majoring in Finance and economics. Harrison joined the team of Sean Boswell, Darren Ross and Scott Plomgren, a team of industrial professionals with over 35 years of experience and 90,000,000 SF transacted. 

Harrison’s area of interest and expertise is primarily the Atlanta industrial market, particularly the I-20 West and Northeast Atlanta submarkets.  Harrison provides his clients with site selection, market research, financial analysis, and transactional services including leasing and purchasing new space and subleasing or selling excess space.

Harrison’s focus and dedication to meeting his clients’ needs provides him the ability to deliver outstanding service to both landlords and tenants.

 

 

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