Year-to-Date Absorption Totals 16.3 Million Square Feet
Cushman & Wakefield released third quarter 2017 statistics today for the Atlanta industrial market, which indicate the market is poised to break absorption and construction completion records this year.
Year-to-date, the Atlanta industrial market has experienced 16.3 million square feet of occupancy gains, breaking the previous record for an entire year, 2014’s 16.1 million square feet.With the fourth quarter still remaining, the industrial market is expected to surpass the previous record by millions of square feet. The Northeast submarket is leading the way with 3.3 million square feet of absorption, followed by the Airport/South Atlanta submarket with 3.2 million square feet.
Due to the record amount of occupancy gains so far this year, the vacancy rate has decreased 80 basis points year-over-year to 7.8 percent. This is evidence that demand and absorption arekeeping pace with the record amount of new completions.
Construction completions are also approaching a new all-time high. Speculative completions so far this year total 12.1 million square feet, while build-to-suit completions total 3 million square feet. This brings the overall construction completion total to 15.1 million square feet for the first three quarters of 2017. With 14.8 million square feet still under construction, Atlanta is on pace to surpass last year’s delivery record of 17.5 million square feet.
Strong market fundamentals coupled with increasing demand for big-box space make Atlanta one of the top markets in the nation for industrial real estate. Current indicators such as record absorption and strong leasing activity suggest that the Atlanta industrial market will remain active and consistent to close out 2017.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.