ATLANTA, GA—Atlanta posted a 6.3 percent industrial vacancy rate during first quarter 2018, the lowest level since 1995, due to strong demand significantly outpacing supply. With 3.3 million square feet absorbed in the first quarter—despite 5.6 million square feet of industrial product deliveries—research by Transwestern indicates a solid start to 2018.
“It's remarkable to see a continued vigorous decline in vacancy in the midst of so much development,” says Julian Brown, Transwestern principal. “During first quarter, South Atlanta once again led the market in demand and, not coincidentally, saw the highest levels of new construction.”
First quarter 2018 reported 14.2 million square feet of industrial supply under development throughout Atlanta. Robust demand and the resulting construction have pushed asking rents to an average of $4.11 per square foot, the highest in the metro since 2001. The average sale price also increased to $57 per square foot, up 5 percent from the previous 12-month period.
“Although 2018 is likely to see the highest level of new deliveries on record in Atlanta, we expect to see more record-low vacancies and moderate rent growth,” says Keith Pierce, Transwestern director of research for the Southeast US. “Expanding distribution networks to support e-commerce and last-mile delivery are likely to maintain demand for the next several years.”
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
