ATLANTA-Industrial leasing in Atlanta totaled nearly 15.2 million square feet at the end of 2010. That’s up 31 percent from 11.6 million square feet in 2009, according to a new report from Cushman & Wakefield.
“As indicated by the 2010 numbers, Atlanta’s industrial sector made significant strides in improving over 2009’s performance,” says Mike Elting, executive vice president, for the Atlanta region. “As economic recovery gains a stronger foothold we expect these positive trends to continue locally.”
Investor sales activity totaled more than 6.2 million square feet in Atlanta, up 61 percent from almost 3.9 million square feet at this time last year. Atlanta’s vacancy rate fell to 11.6 percent at the end of 2010, from 11.7 percent at the end of the previous quarter.
“These types of increases make it apparent that confidence is building on behalf of both users and investors,” says Jim Dieter, executive vice president and head of Cushman & Wakefield’s National Industrial Services. “Improvements in fundamentals provide a clear picture of recovery for the U.S. industrial market.”
The uptick in leasing activity also boded well for the absorption rate, a measure which indicates the net change in occupied space. Atlanta’s absorption rate was positive 3.9 million square feet at the end of 2010, compared to negative 2.9 million square feet at this time last year.
“Positive absorption for the first time in two-and-a-half years is an extremely positive sign for the U.S. industrial market,” says Maria Sicola, executive managing director and head of Americas Research for Cushman & Wakefield. “Historically low construction rates will keep supply limited, giving us the possibility of rent increases later this year.”
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