3rd Quarter 2019 Industrial Report

Industrial Market Summary

The industrial market continues to trend positive through the first three quarters of 2019 with improvements in average sales price, rents and vacancy rates. Of slight concern is the fact that under construction is outpacing absorption and cap rates have risen with sales volume pulling back. Overall, the metro Atlanta industrial continues to one of the stronger market segments.

Below is a quick summary of the Q3 2019 stats that lead to the conclusion above 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

  • Supply has been trending up since 2013.

  • New construction continues but is off since the 2016 peak.

VACANCY TRENDS

  • Downward trend continues but the rate of decline is slowing.

 

ABSORPTION, DELIVERIES & UNDER CONSTRUCTION

  • Absorption has slowed in 2019.

  • Red Flag – Under Construction is outpacing Absorption.

TRANSACTION VOLUME

  • Annualized sales volume off from 2018 but tracking close to 2017.

VALUATION HISTORY

  • Cap rates are up from 2018 but has not negatively impacted value.

RENT TRENDS

  • Strong demand continues to push rental rates up, currently at $6.00 per square foot, a six year high.

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