Atlanta’s industrial market continues to roll along to new heights. While net absorption was down this quarter, it was still a robust 5.3 MSF and now top 26.3 MSF for the year, which tops the record set in 2017. In addition, the vacancy rate dropped to a record low of 4.4%, down 50 basis points in just 90 days, and the lowest rate ever seen. Due to the high demand for space, rental rates are climbing quickly, and average asking rents have been up 3% since last quarter.

The Port of Savannah has seen record volume during Q3 and is reporting that many containers are being left at the port because customers have no space to warehouse the contents of the containers. This will drive demand for new space, and with many container ships anchored off the coast awaiting a turn at the port to unload, there is no end in sight for imported goods coming into the US.
At the submarket level, South Atlanta has surpassed the Northeast for the largest submarket (213.8 vs. 212.1 MSF). With over 12 MSF of space under construction, South Atlanta also leads in absorption and space delivered year to date. Fulton Industrial/I-20 West remained the tightest market, with a vacancy rate of 1.7%, and had the most significant jump in new construction starts in Q3, with over 5.5MSF underway.

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