Northwest Atlanta at record vacancy low, construction increases
Key Northwest Industrial Atlanta Submarket Trends
- Following Q2’s strong performance, Northwest Atlanta witnessed another 617,000 square feet absorbed in Q3.
- This quarter’s occupancy gains have pushed the submarket’s overall vacancy rate to a record low of 3.1%.
- Despite the positive activity, Northwest’s average rental rate dropped 3% quarter-over-quarter.
- Northwest Atlanta is expected to see a more subdued quarter of absorption in Q4, but leasing is anticipated to remain solid.
Northwest Atlanta Industrial Submarket Q3 2021 Overview
Another quarter of positive absorption puts Northwest Atlanta’s year-to-date total to just under 3-million square feet. Though the occupancy gains were modest compared to the last two quarters, the activity has resulted in the submarket’s vacancy rate reaching a record low of 3.1%; the second lowest in Atlanta’s industrial market. In spite of this, the average rental rate dropped 3% quarter-over-quarter. This likely due to most of the newer product being leased and no longer available. As a result, construction levels increased above 6-million square feet. Q4 is anticipated to be more subdued; however, leasing should remain steady.