South Atlanta ended the year with the highest amount of space absorbed in the Atlanta industrial market.
Key South Atlanta Industrial Submarket Trends
- South Atlanta vacancy rate decreased in the final quarter of 2020
- Net absorption for the South Atlanta Industrial submarket was positive this quarter
- Construction was down for the submarket in the fourth quarter of 2020
- Rental rates increased during the fourth quarter of 2020
South Atlanta Industrial Submarket Q4 2020 Overview
South Atlanta ended the year with the highest amount of space absorbed in the Atlanta industrial market. Just over 9 million square feet of occupancy gains occurred.
Twenty-percent of the annual absorption in the submarket was from Amazon. While the tech giant and e-commerce tenants, in general, were active all year, South Atlanta saw strong growth from transportation and logistics companies also as they moved into over 3 million square feet in 2020.
With positive gains, South Atlanta’s industrial vacancy rate is down to its lowest level in two years. Specifically, the Airport/I-85 South corridor experienced the largest drop year-over-year, declining 130 basis points (1.3%).
The pipeline of occupancies remains strong for the submarket heading into the new year. South Atlanta is expected to maintain a dominant position in the market in 2021. Additional, steady development activity will continue to satisfy space demand here.