The metro Atlanta industrial market continues to trend positive. As for 2017, the market set new highs in values, transaction volume and rents and a low in vacancy rate. Overall, this is one of the stronger market segments in Metro Atlanta with most market participants projecting positive growth throughout 2018. Below is a quick summary of the Year End 2017 Metro Atlanta Industrial Market stats as compiled by Crossroads Appraisal Group from information obtained from CoStar.
If you would like a PDF version of the information below, it is available here for your convenience
A total of 16,656 industrial buildings were identified in metro Atlanta housing about 742.5 million square feet. As displayed to the right, the supply of industrial space has been increasing each year since 2012.
After several sluggish post recession years, Atlanta’s industrial market began to improve in 2012. As shown to the left, vacancy rates generally trended down from 2012 to 2017. The first quarter 2018 recorded a slight increase which appears to be a result of new deliveries in the market.
ABSORPTION, DELIVERIES & UNDER CONSTRUCTION
After five plus years of virtually no new product after the 2008 crash, new construction began again in 2014 with a spike in deliveries in 2016. There continues to be a robust pipeline of new product. However, a majority of the new construction is large buildings as the supply of smaller owner user properties continues to tighten.
Sales activity in the market has generally trended up since 2012 with 2017 recording the six year.
Values have trended up since 2012 while cap rates were compressing through 2015. Since, cap rates have been moving up modestly most likely as a result of the Fed’s interest rate hikes.
As displayed below, rent growth has continued to be positive since 2012.
The metro Atlanta industrial market continues to trend positive. As for 2017, the market set new highs in values, transaction volume and rents and a low in vacancy rate. Another good sign was the fact that absorption outpaced new construction, a trend reversal from 2016. On the negative side, cap rates are creeping up and construction levels are at post recession highs. Overall, this is one of the stronger market segments in Metro Atlanta with most market participants projecting positive growth throughout 2018.
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