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Atlanta's Big-Box Industrial Market Report | Fall 2020

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Atlanta's big-box industrial market posted its strongest quarterly ever in the third quarter of 2020.

Posting its strongest quarterly absorption ever in the third quarter of 2020, Atlanta's big-box industrial market absorbed just over 7.7 million square feet.

Occupancies by Amazon were the largest gains contributing to third quarter's record total. The e-commerce company accounted for 40% of the absorption amount.

The strong quarter of activity led to a 200 basis points (2.0%) decline in Atlanta's big-box vacancy rate. this is the largest quarterly drop in six years.

Leasing activity over the past two quarters has remained strong for big-box product, a sign the pandemic has resulted in sustained demand in the Atlanta market. E-commerce companies continue to increase their industrial footprints in the market as the retail landscape evolves. 

The outlook for Atlanta's big-box market is strong. In addition to record absorption this quarter, construction activity remains elevated and occupancy gains are expected through the end of the year.

Key Takeaways

  • Large, big-box warehouses in Atlanta absorbed 7.7 million square feet in Q3 2020
  • Amazon accounted for 40% of Atlanta's big-box absorption.
  • Atlanta's large warehouse space vacancy rates experiences largest quarterly drop in six years
  • Leasing activity for big-box distribution remains strong through the COVID-19 pandemic
  • Big-box construction activity remains elevated in Atlanta
  • Occupancy gains for large warehouse space in Atlanta predicted through end of 2020
What is a big-box industrial building?

A big-box industrial building is a large industrial facility consisting of 200,000 square feet or more. Big-box buildings are primarily used for warehousing or distribution purposes and have ceiling heights of 28-foot clear heights or greater. 


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Atlanta's Big-Box Industrial Market Report | Fall 2020

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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.

 

 

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