Atlanta & Southeast News In Your Inbox
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
ATL Rises to Top 3 for U.S. Industrial Deliveries
The Atlanta industrial market ranks among the top three markets in the United States for new construction deliveries. Research by Cushman & Wakefield shows there’s 34.9 million square feet anticipated to deliver by the end of 2021. That places Atlanta’s pipeline ahead of all major industrial markets except Dallas/Ft. Worth (46.3 MSF) and Inland Empire (45.7 MSF).
Industrial deliveries are at an all-time high, but a shift in project size is becoming more evident in 2020, wrote Cushman & Wakefield’s Lisa Pittman in the report.
Larger buildings exceeding one million square feet in size have comprised the bulk of new construction over the past several years. The need for large space seems to have largely been met in Metro Atlanta, and as available land becomes scarce, development of big-box space has slowed.
The bulk of new product slated to enter the market in 2020 is contained within mid-sized buildings: 39 facilities in the 100,000- to 599,000-square-foot range are under construction totaling 10.8 million square feet.
As uncertainty remains high, due to COVID-19, U.S.-China tensions, and economic fluctuations, the average deal size has begun to shrink in recent months. However, demand for spaces in the 300,000- to 599,999-square-foot range rose dramatically, skyrocketing 81.7% from 2018 to 2019. As a result, buildings in this size range recorded a substantial vacancy decline, falling 480 basis points to 8.3%.
Cushman & Wakefield predicts Atlanta’s industrial construction pipeline will remain robust through 2020 and 2021, outpacing nearly every other market in the country.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Development
