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Industrial Sector Shows Significant Loss

ATLANTA-Cushman & Wakefield tallies 859,000 square feet of negative absorption in the first quarter.

By Carl Cronan | Updated on April 09, 2009

ATLANTA-The local industrial market posted 859,347 square feet of negative overall absorption during this year’s first quarter, mostly in the south and northwest submarkets, according to a research report by Cushman & Wakefield. This follows nearly 6.3 million square feet of positive overall absorption throughout 2008.

“With the economy mired in a recession that is expected to surpass every previous recession since the 1930s in terms of direction, depth and duration, companies focused primarily on consolidations and renewals in an effort to fine-tune their supply chains,” wrote Chris Shaner, senior research associate with Cushman & Wakefield’s Atlanta office. He noted that development activity slowed throughout the metropolitan area in the first quarter, with 200,000 square feet completed and only 156,160 square feet under construction.

Overall vacancy increased to 9.7% in the first quarter, the city’s highest level in two years but still well below the 14.6% peak reached in 2004, Shaner said. Direct asking rents remained at $4 per square foot through the first three months of this year, while just 532,124 square feet of investment sales activity was recorded for the period, he said.

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