Record absorption sends vacancy lower in Northwest Atlanta
Key Northwest Industrial Atlanta Submarket Trends
- Northwest Atlanta experienced its strongest quarterly absorption ever this quarter.
- Vacancy is at its lowest point since 2019, decreasing 50 basis points in Q2, despite 1-million square feet of deliveries.
- After dropping last quarter, the average rental rate in the submarket reversed course, increasing 3.5% in Q2.
- Though occupancy gains will continue, 4.5 million square feet is scheduled to deliver by year’s end which will raise vacancy here.
Northwest Atlanta Industrial Submarket Q2 2021 Overview
Northwest Atlanta posted its highest quarterly absorption ever in Q2, pushing vacancy levels to their lowest levels since 2019. This quarter’s occupancy gains were mostly the result of move-ins by tenants ranging between 100,000 to 400,000 square feet, and also the lack of significant move-outs. Just over 1-million square feet delivered this quarter, the highest amount in four years. Even so, construction activity remains elevated in the submarket with 5.8 million square feet currently in development. Average rental rates posted their first quarterly increase in a year as the outlook for demand is strong in Northwest Atlanta.