Skip to main content Skip to footer

Stronger than Expected Q3 Results for Atlanta Industrial

Download Report
Hero Image2019Industrial

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

Download Report
Related Experts

Harrison Marsteller

Senior 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.

 

 

View expert

Scott Plomgren

Senior Vice President, Principal

Atlanta

 Scott began his real estate career in 2002 with McWhirter Realty Partners, a local Atlanta brokerage firm. Scott has experience partnering with both local and national clients.  Transaction history includes build to suits, site selection, & acquisitions and dispositions on both lease and sale basis. Noteworthy clients include MOL Logistics, MS International, Excel Foods, Wickmann USA, General Paper Goods and Audio America.

View expert