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Industrial Takes a Hit, But Recovery May Be Speedy

ATLANTA-The recession, 9/11 and the dot-com fallout have all impacted the area's industrial market. According to Dorey's, new construction has dropped significantly since 1Q 2001. Meanwhile, vacancies are up; rents are down.

By Stacey Corso | Updated on April 23, 2002

ATLANTA-Like its office counterpart, the industrial sector is showing signs of softening throughout the Atlanta region. Local analysts attribute this downturn to the recession, the Sept. 11 terrorist attacks, fallout from Atlanta’s dot-com boom and local zoning restrictions.

First-quarter numbers reveal that metro construction levels have dwindled, absorption has decreased, vacancies have risen and rental rates have dropped, according to Christopher Shaner, a market analyst at Dorey Market Analysis Group. “Lenders exhibited more caution and were a little tighter with their money,” Shaner tells GlobeSt.com. “More was required from developers before construction could begin. This, along with economic conditions, precipitated a decrease in construction. Other natural restrictors, such as zoning and land issues, also created downward pressures.”

During the first quarter of ’01, 9.61 million sf of industrial space was under construction, compared to about 4.65 million sf in the first quarter of 2002, Shaner reports.

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