Atlanta Industrial Activity Shows Mixed Results
Atlanta had over 13 million square feet of industrial space come on line this quarter, a record according to a recent CBRE survey. That’s the good news. Here’s the rest of the story. The majority of that inventory is unoccupied. Around 98% of the new supply delivered is speculative. The huge amount of unoccupied new space has increased vacancy rates to 5.8%, the highest it has been in Atlanta since the fourth quarter of 2020.
Demand has cooled down from pandemic highs as Q3 shows leasing activity decreasing 78% year-over-year and net absorption down 62% over the same time.
Despite those decreases, the average NNN lease rate for Atlanta industrial increased by 1.7% quarter-over-quarter, a result of continued demand and the addition of modern product.
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