The Interstate 20/Fulton industrial submarket dominated absorption during the first half of the year with 3.4 million square feet of overall net absorption. The largest move-ins year-to-date include Variety Wholesalers' move into 1.4 million square feet at the Shenandoah Industrial Park and Wayfair's move into 846,496 square feet of space at the King Mill Distribution Park.

“Northeast Atlanta remains the healthiest of Atlanta submarkets with lower vacancy and higher rental rates,” Pittman says. “We continue to see a demand for companies locating within close proximity to city centers and population bases. Well-located class B parks have seen tremendous growth rate and high occupancy gains.”

Not only is the Atlanta industrial market experiencing record absorption, but construction completions are also at an all-time high for the first half of any year in Atlanta's history. Speculative completions so far this year are at 7.7 million square feet, while build-to-suit completions are at 1.9 million square feet. This brings the overall construction-completion total to 9.7 million square feet. With 18.3 million square feet still under construction, Atlanta is on pace to surpass last year's delivery record of 17.5 million square feet.

“There are several net new users who have either signed long term leases or are currently scouting for space,” Pittman says. “These companies are following the population growth trend that has helped Atlanta's economy over the last 24 months.”

Overall asking rents jumped from $4.22 per square foot during the second quarter of 2016 to $4.35 per square foot in the second quarter of 2017. This marks the highest industrial overall asking rental rate since the fourth quarter of 2001 when asking rates reached $4.69 per square foot. Investment sales also made a strong showing in the first half of 2017 with more than 10 million square feet of industrial product trading hands. Current indicators such as record absorption and strong leasing activity suggest that the Atlanta industrial market will remain active and consistent throughout 2017.

ATLANTA—Record-breaking numbers are marking Atlanta's industrial market in the second quarter. That's according to Cushman & Wakefield's latest report.

Atlanta experienced the most overall net absorption within the first half of any year ever recorded at 6.4 million square feet. That was followed by 6.3 million square feet of occupancy gains in the second quarter of 2017. This brings the first half total for overall net absorption to 12.7 million square feet.

“Despite a brief lull in the beginning of the summer, activity has begun to ramp back up with several projects between 250,000 to 1.3 million square feet scout for available space,” Lisa Pittman, director of Cushman & Wakefield's Industrial Tenant Representation Group, tells GlobeSt.com. “Cushman & Wakefield is currently tracking 16 projects 150,000 square feet and greater, totaling 12.79 million square feet.”

Even with the record amount of occupancy gains so far this year, the vacancy rate has remained flat year-over-year at 8.4%. This, CushWake offers, is evidence that absorption is keeping pace with new completions.

The Interstate 20/Fulton industrial submarket dominated absorption during the first half of the year with 3.4 million square feet of overall net absorption. The largest move-ins year-to-date include Variety Wholesalers' move into 1.4 million square feet at the Shenandoah Industrial Park and Wayfair's move into 846,496 square feet of space at the King Mill Distribution Park.

“Northeast Atlanta remains the healthiest of Atlanta submarkets with lower vacancy and higher rental rates,” Pittman says. “We continue to see a demand for companies locating within close proximity to city centers and population bases. Well-located class B parks have seen tremendous growth rate and high occupancy gains.”

Not only is the Atlanta industrial market experiencing record absorption, but construction completions are also at an all-time high for the first half of any year in Atlanta's history. Speculative completions so far this year are at 7.7 million square feet, while build-to-suit completions are at 1.9 million square feet. This brings the overall construction-completion total to 9.7 million square feet. With 18.3 million square feet still under construction, Atlanta is on pace to surpass last year's delivery record of 17.5 million square feet.

“There are several net new users who have either signed long term leases or are currently scouting for space,” Pittman says. “These companies are following the population growth trend that has helped Atlanta's economy over the last 24 months.”

Overall asking rents jumped from $4.22 per square foot during the second quarter of 2016 to $4.35 per square foot in the second quarter of 2017. This marks the highest industrial overall asking rental rate since the fourth quarter of 2001 when asking rates reached $4.69 per square foot. Investment sales also made a strong showing in the first half of 2017 with more than 10 million square feet of industrial product trading hands. Current indicators such as record absorption and strong leasing activity suggest that the Atlanta industrial market will remain active and consistent throughout 2017.