After record-setting activity in 2021 and 2022, Atlanta’s industrial market slowed in the first half of 2023. While industrial demand remains high, a slow deal process coupled with market uncertainty led leasing activity to decline to 6,460,974 SF in Q2 2023, the lowest level since Q3 2011. Sublease availability also grew by more than 3.2 MSF in Q2. Decelerating activity has not discouraged landlords from increasing rents, which hit a new record high of $8.32…
LEE IN THE NEWS: Joseph Mullican,SIOR Represents McCollisters in Relocation to a single-tenant, 168,564 SF Building
May 18, 2023 (Atlanta, Georgia) – Joseph Mullican, SIOR of Lee & Associates – Atlanta alongside Scott Mertz of NAI – Mertz, represented an existing client, McCollisters, in their recent relocation / expansion. Taking the entire building, McCollisters is now the single-tenant of Horizon Pointe | Building 100 in Suwanee, GA. The 168,564 SF front-load building is located at 530 Horizon Drive | Suwanee, GA, and features 32’ clear-height ceilings, ESFR sprinklers, 60’ loading bays, 33…
Q1 2023 SAVANNAH INDUSTRIAL MARKET REPORT
The rapid growth in goods spending and increased imports to the fast-growing Port of Savannah has led to record demand for industrial space. After decreasing for three consecutive quarters, vacancy has increased to 2.7% in Q1 due to the timing of new deliveries. Leasing activity rebounded in Q1 with record absorption after a considerable slowdown in the second half of 2022. The largest leasing transaction for the quarter was a 1,231,693 SF building to be…
Q1 2023 Atlanta Industrial Market Report
Although there is a sustained demand for industrial space in Atlanta, the market activity during Q1 2023 has shown a deceleration. Vacancies have risen slightly off of record lows, ending Q1 with a 50-basis point jump to 4.5%. Overall net absorption fell, with just under 2 million SF newly occupied. While activity cooled in Q1, the rise in sublease space during the Fall of 2022 has subsided and overall availability levels have stabilized. Despite Atlanta’s…
YEAR-END 2022 ATLANTA INDUSTRIAL PIPELINE
For the first time since the beginning of the COVID pandemic, market fundamentals reflect that the expansion phase of the most recent development cycle is coming to an end. Capital market constraints, costs of construction, and uncertainty of future tenant demand are all factors in the development slowdown. Many of the nation’s leading banks have ceased construction loans for new projects and many equity players are on the sideline until there is clarity on exit…