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Housing Hinders Industrial Leasing

ATLANTA-Local vacancy reaches a four-year high, yet some submarkets fare better.

By Carl Cronan | Updated on October 31, 2008

ATLANTA-The local industrial sector has taken a hit this year from the housing downturn, driving vacancy to its highest overall level in four years at 12%, according to a new research report by Colliers Spectrum Cauble Inc. However, there are a few bright spots among the nine local submarkets where third-quarter absorption ended up positive.

The Northeast Atlanta, South Atlanta and Stone Mountain submarkets showed positive net absorption during the third quarter, although the overall industrial market gave back more than 554,000 sf during those three months, Colliers figures show. A number of new occupancies expected in the fourth quarter should return market absorption to 1 million sf for the year, well below the 11 million sf recorded throughout 2007.

“The struggling economy continues to plague Atlanta’s industrial market,” Scott Amoson, Colliers’ local research director, stated in the report. “Volatility in the housing industry has had the greatest impact on industrial space in Atlanta as spaces once filled by lumber warehousers, textile manufacturers and home builders continue to come back to the market.”

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