Northwest Atlanta lags the Atlanta industrial market after only absorbing 246,000 square feet year-to-date.
Fundamentals remain optimistic for the Northwest Atlanta Industrial submarket; however, the submarket lags the Atlanta industrial market as a whole, having only absorbed 246,000 square feet year-to-date.
The subdued occupancy gains could be the result of a tight availability market. Northwest's vacancy rate of 4.8% is the third lowest in Atlanta.
To meet this availability crunch, developers have flocked to the Northwest Atlanta industrial submarket over the past year. Since this time last year, construction levels here have increased by 170%.
The average rental rate here dropped this quarter to its lowest point since the beginning of 2019. The majority of this decline can likely be the result of landlords becoming more aggressive in order to prop up leasing activity in the submarket.
Another quarter of modest absorption is expected in Q4. The good news is leasing appears to be increasing for the submarket.
- Northwest Atlanta Industrial submarket has absorbed 246,000 square feet year-to-date
- Northwest Atlanta's industrial vacancy rate is third lowest in Atlanta at 4.8%
- Construction levels have increased 170% since this time last year
- The average rental rate for industrial space has dropped to its lowest point since the beginning of 2019
- Northwest Atlanta is expected to have another quarter of modest absorption in Q4 2020