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.
- 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.