Industrial Market Summary
The first half of 2019 is trailing behind the record setting 2018 indicators but still strong and with growth outpacing prior years. However, of slight concern is the fact that under construction is outpacing absorption. Overall, it appears that the metro Atlanta industrial segment continues to trend positive.
Below is a quick summary of the Q2 2019 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.
Supply up just 1% over year end 2018 number
Redevelopment trends continue
Overall, trending down since 2013 with a slight uptick at mid-year 2019 to 5.4%
ABSORPTION, DELIVERIES & UNDER CONSTRUCTION
Absorption has slowed in 2019
Red Flag – Under Construction outpacing Absorption
Sales activity off slightly from 2018 but on pace for 616 transactions, in line with 2017
Cap rates up from 2018 but has not impacted value dramatically
Strong demand continues to push rental rates up with mid-year 2019 at $5.89 per square foot, a six year high