The Atlanta Commercial Board of REALTORS, the largest commercial REALTOR association in the country, released its Q4 2015 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.    

LABOR: According to the Bureau of Labor Statistics, the unemployment rate dropped 1.1 percentage points from 6.1% in November 2014 to 5.0% in November 2015.  The Atlanta metropolitan statistical area is one of the twelve largest in the nation and had the highest job growth percentage of the twelve with 3.4% from November 2014 to November 2015.  Job creation totaled 86,500 in the Atlanta metropolitan statistical area over the past year. Industrial using jobs (industries include manufacturing and trade transportation and utilities) increased 23,800 from November 2014 to November 2015.

ABSORPTION: The Atlanta metro absorbed over 3.8 million square feet during the fourth quarter of 2015. The industrial market has absorbed approximately 13.6 msf during 2015.

VACANCY: Due to continued positive absorption, the overall vacancy rate has fallen from 9.6 % in Q3 2015 to 9.3% at the close of 2015. Industrial vacancy rates dropped substantially from 10.4% in Q4 2014.The Northeast submarket recorded the most absorption for fourth quarter with 1.6 msf absorbed. The West submarket reflected the second largest absorption total with 1.4 msf of total absorption during fourth quarter 2015.

CONSTRUCTION:Developers continue to build as demand for industrial product strengthens. There are currently 26 buildings totaling over 13.8 msf under construction.  Through third quarter 2015, 17 buildings totaling 6.7 msf have been completed.

TOP LEASE TRANSACTIONS: Developers continue to build as demand for industrial product strengthens. There are currently 24 buildings totaling approximately 11.3 msf under construction.  Through fourth quarter 2015, 23 buildings totaling 9.9 msf have been completed.

A Word from ACBR Member, Pat Murphy: “The numbers clearly show strong absorption for industrial space in the metro area, led by bulk users. We expect this trend to continue into 2016 when major users such as Smuckers, Keurig and Google Fiber occupy big chunks of space from previously announced deals. New development should provide even more opportunities, including redevelopment of some sites closer to the central city. In all, the industrial sector is clicking on all cylinders right now.””