Atlanta & Southeast News In Your Inbox
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
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.
- ◦Economy
