The strongest quarterly industrial absorption was seen in the traditional industrial strongholds of South Atlanta and the Northeast. In fact, for the year to date, South Atlanta has seen nearly two-thirds of the Atlanta market's industrial demand, and most of its new construction.

Atlanta's industrial market may also end the year with more new development than it had in 2016, which was the highest level seen in a decade. Asking rents rose or remained the same in most of Atlanta's major industrial markets, leaving average rents largely unchanged from mid-year at the metro level.

“It's an exciting time in Atlanta's industrial sector as strong third-quarter demand drives record new construction, a reflection of Atlanta's top-performing job growth in the nation,” Keith Pierce, senior research manager with Transwestern, tells GlobeSt.com. “The bulk of new construction in 2017 is in South Atlanta and the Northeast, which are both experiencing historically low vacancies and rising asking rents.”

ATLANTA—New product is skewing Atlanta's industrial market—but just slightly and just for the third quarter. That's according to Transwestern's latest report.

Industrial vacancy rose very slightly to 7.2% in the third quarter. That's due to the delivery of new product outpacing industrial demand in the short term. During 2017, industrial vacancy is down half a percentage point, as demand has been stronger than new product deliveries.

Despite the new deliveries, Industrial absorption remained strong in the third quarter, following an even more impressive second quarter. The Atlanta industrial market is on track to enjoy its strongest annual demand in years, if absorption trends hold steady in the fourth quarter. As of the third quarter, the market has already seen higher demand than it did in all of 2016.

“The future is now when it comes to commercial real estate which is evolving at a pace far more rapidly than ever before—largely due to the Millennial generation—and both the office and industrial markets in Atlanta are showing this in unique ways,” Bo Jackson, managing director with Transwestern, tells GlobeSt.com. “Space requirements, internal and external design, culture, and the cultivation of ecosystems within multitenant buildings are currently impacting office market trends and will be at the forefront development and leasing decisions moving forward.”

The strongest quarterly industrial absorption was seen in the traditional industrial strongholds of South Atlanta and the Northeast. In fact, for the year to date, South Atlanta has seen nearly two-thirds of the Atlanta market's industrial demand, and most of its new construction.

Atlanta's industrial market may also end the year with more new development than it had in 2016, which was the highest level seen in a decade. Asking rents rose or remained the same in most of Atlanta's major industrial markets, leaving average rents largely unchanged from mid-year at the metro level.

“It's an exciting time in Atlanta's industrial sector as strong third-quarter demand drives record new construction, a reflection of Atlanta's top-performing job growth in the nation,” Keith Pierce, senior research manager with Transwestern, tells GlobeSt.com. “The bulk of new construction in 2017 is in South Atlanta and the Northeast, which are both experiencing historically low vacancies and rising asking rents.”