The Atlanta Commercial Board of REALTORS, the largest commercial REALTOR association in the country, released its Q3 2017 Industrial Brief on industrial market trend statistics for 22 Atlanta Industrial Sub Markets. Industrial Brief is compiled by data from Xceligent, a leading provider of verified commercial real estate information.

"The Atlanta industrial market has become a national leader in growth and activity," said F. Keene Miller, 2017 ACBR Board President, and President of Brokerage for Ackerman & Co. “Both nationally and regionally, industrial has great momentum at the moment. The region has strong quarterly absorption of over 3.1 million square feet, a figure that will approach 20 million for the year by the end of the fourth quarter. There is over 14 million square feet of industrial space currently under construction in Atlanta that also reflects that momentum.”

LABOR: According to the Bureau of Labor Statistics, the unemployment rate decreased 0.7 percentage points from 5.3% in August 2016 to 4.6% in August 2017. The unemployment rate was lower than Georgia (4.7%) and higher than the US (4.4%). The Atlanta metropolitan statistical area nonfarm job creation totaled 86,400 in the Atlanta-Sandy Springs-Roswell metropolitan statistical area over the past year.  Industrial using jobs (industries include manufacturing and trade transportation and utilities) added 9,800 jobs during the past year.

ABSORPTION: Absorption averaged 3.5 msf per quarter during 2016 and is on pace to average 5.4 msf per quarter during 2017.  Overall absorption totaled 4.7 msf during third quarter and approximately 16.3 msf year-to-date.  Major occupiers of space included Dollar General, Amazon, Armada Warehouse Solutions, Blackhall Studios, Elite Foam, Elite Exhibits, Graham Packaging, Atlanta Roller Girls, Ferguson and ASD Logistic, Inc.  Ecommerce is driving absorption levels, representing more than 50% of the demand.
    
The South market recorded the most absorption for 3Q 2017 with approximately 3.1 msf absorbed. The Northeast market reflected the second largest absorption total with 1.3 msf of total absorption during 3Q 2017.

VACANCY: Due to approximately 13.8 msf of space being completed during 2016 and over 10.4 msf through the first nine months of 2017, the overall vacancy rate dropped 0.7 percentage points to 8.1% compared to third quarter 2016. Vacancy rates were down 1.3 percentage points from 4Q 2016.

CONSTRUCTION: With the increase in demand for products due to population growth and increased economic activity in Atlanta, developers continue to build.   There are currently 29 buildings totaling approximately 14.7 msf under construction.  Through 3Q 2017, twenty buildings totaling 10.4 msf have been completed.  Construction activity is expected to remain strong in 2017.  Asking rents are expected to increase during 2017 due to tight market conditions, though at a moderate pace in areas with new speculative construction.