The Atlanta Commercial Board of REALTORS, the largest commercial REALTOR association in the country, released its Q3 2016 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 0.9 percentage points from 6.0% in July 2015 to 5.1% in July 2016.  The Atlanta metropolitan statistical area job creation totaled 74,800 in the Atlanta-Sandy Springs-Roswell metropolitan statistical area over the past year.  Industrial using jobs (industries include manufacturing and trade transportation and utilities) increased 23,300 from July 2015 to July 2016. 

ABSORPTION: The Atlanta metro absorbed over 1.9 million square feet during 3Q 2016 and 10.8 msf year-to-date.  Major occupiers of space included Medline, Best Buy, OHL, Bio-Lab, Inc., Golden State Foods, Pak Lite, Tyler Perry Studios, Green Circle Demo, Top Gun Powder Coating and APL.

The South market recorded the most absorption for 3Q 2016 with 1.0 msf absorbed. The Northeast market reflected the second largest absorption total with 618,470 sf of total absorption during 3Q 2016.

VACANCY: Due to approximately 10.5 msf of space being completed during 2016, the overall vacancy rate has only fallen 0.1 percentage points to 9.0% in Q3 2016 from 9.1% at the close of 3Q 2015.  Industrial vacancy rates rose from 8.7% in 2Q 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 26 buildings totaling approximately 9.9 million square feet under construction.  Through 3Q 2016, 24 buildings totaling 10.5 msf have been completed.  Construction completions were concentrated in the South (5.2 msf), Northwest (3.1 msf), Northeast (1.5 msf), North (.3 msf) and West (.3 msf).  Construction activity is expected to remain strong into 2017.