With just under a half million square feet of positive absorption, the Northeast Atlanta industrial submarket practically accounted for all of the occupancy gains in the Atlanta market this quarter.
- Smaller tenant occupancies were the major contributor to the positive gains. The largest occupancy of the quarter was Auto Metal Direct moving into its 318,000 square-foot build-to-suit.
- Even with the positive absorption, overall vacancy increased in Q1. This is due to just under 1.4 million square feet of speculative space delivering to the submarket this quarter.
- Northeast's overall average industrial rental rate increased by its largest percentage in almost seven years. The addition of new inventory, along with a strong increase in flex rents were the reason for this.
- The submarket should see positive gains in Q2; however, the COVID-19 pandemic could put strain on some tenants to keep their doors open. E-commerce companies will drive demand going forward.