Occupancy gains remain high for South Atlanta
Key South Atlanta Industrial Submarket Trends
- Following last quarter’s leading absorption total, South Atlanta experienced over 1-million square feet yet again in Q2.
- Vacancy ticked down another 30 basis points (0.3%) to another record low at 6.7%.
- Industrial deliveries totaled 1.1 million square feet this quarter; the lowest quarterly amount for the submarket since 2018.
- South Atlanta continues to see strong leasing demand, and will see record annual occupancy gains in 2021.
South Atlanta Industrial Submarket Q2 2021 Overview
After leading the Atlanta market in net absorption last quarter, the South Atlanta industrial submarket saw the positive activity continue in the second quarter with occupancy gains totaling just over 1.7 million square feet. Most of the move-in activity in the quarter came from tenants below 500,000 square feet. With positive absorption totaling more than the amount of new industrial space delivered, the submarket’s overall vacancy rate declined to another record low. Rental rates also continue to increase and this has led to record prices paid for industrial product here. South Atlanta will see its strongest year ever in 2021.