South Atlanta dominated the Atlanta market in the third quarter of 2020
South Atlanta dominated the Atlanta market this quarter, absorbing just under 5.7 million square feet; more than all other submarkets combined. this is also the highest quarterly amount ever absorbed in one quarter for the submarket.
Amazon's occupancies at Crossroads Distribution Center and Bridgeport were the largest to take place quarter.
As expected with the positive activity, South Atlanta's warehouse vacancy decreased the most of any other submarket in Atlanta. The rate is back below 10% for the first time since the end of last year. Subdued deliveries also helped contribute to the 220 basis points (2.2%) drop in Q3.
Although warehouse rents continue increasing, the submarket's overall average declined due to a drop in manufacturing rents.
South Atlanta will continue to put up solid occupancy gains in Q4. The submarket remains at the top of the list for e-commerce and logistics companies, and developers to meet demand.
- South Atlanta absorbed 5.7 million square feet in Q3 2020
- Amazon's occupancies led the submarket
- South Atlanta's vacancy rate decreased more than any other Atlanta industrial market
- Warehouse rents continue to increase
- Overall market rent decreased due to a drop in manufacturing rents
- South Atlanta is expected to see continued gains going into Q4