The metro Atlanta industrial market continues to trend positive with 2018 on pace to set new highs in values, transaction volume and rents. However, new construction might be of some concern. Below is a quick summary of the 3rd Quarter 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 16,761 industrial buildings were identified in metro Atlanta housing about 751.5 million square feet. Supply has been increasing since 2012..
After several sluggish post recession years, Atlanta’s industrial market began to improve in 2012. Vacancy rates have generally trended down since 2012.
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 high and 2018 is on pace to eclipse that mark..
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 but values have continued to enhance.
As displayed below, rent growth has continued to be positive since 2012.
The metro Atlanta industrial market continues to trend positive with 2018 on pace to set new highs in values, transaction volume and rents. However, new construction might be of some concern. Overall, this is one of the stronger market segments in Metro Atlanta with most market participants projecting positive growth throughout the balance of 2018 and into 2019.
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