The Atlanta Commercial Board of REALTORS® (ACBR), the largest commercial REALTOR® association in the country, released its Q1 2016 Industrial Brief on industrial market trend statistics for 22 Atlanta Industrial Sub Markets.
Q1 2016 Industrial Market Statistics
LABOR: According to the Bureau of Labor Statistics, the unemployment rate dropped 1.0 percentage points from 6.2% in January 2015 to 5.2% in January 2016. The Atlanta metropolitan statistical area job creation totaled 88,400 in the Atlanta-Sandy Springs-Roswell metropolitan statistical area over the past year.
ABSORPTION: The Atlanta metro absorbed over 3.85 million square feet (msf) during the first quarter of 2016.The South market recorded the most absorption for first quarter with 2.3 msf absorbed. The Northeast market reflected the second largest absorption total with .7 msf of total absorption during first quarter 2016.
VACANCY: Due to continued positive absorption, the overall vacancy rate has fallen from 9.1 % in Q4 2015 to 9.0% at the close of first quarter 2016. Industrial vacancy rates dropped from 9.2% in Q1 2015.
CONSTRUCTION: Developers continue to build as demand for industrial product strengthens. There are currently 20 buildings totaling approximately 9.5 msf under construction. Through first quarter 2016, seven buildings totaling 4.1 msf have been completed.
TOP LEASE TRANSACTIONS: Major occupiers of space included Petco, Menlo Logistics, Smuckers, Interface, Megadoor, Atlantic Packaging and BlackPowder Products, Inc.
A Word from ACBR Member, Pat Murphy: "The numbers clearly show strong absorption for industrial space in the metro area, led by bulk users. We expect this trend to continue into 2016 when major users such as Smuckers, Keurig and Google Fiber occupy big chunks of space from previously announced deals. New development should provide even more opportunities, including redevelopment of some sites closer to the central city. In all, the industrial sector is clicking on all cylinders right now."
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The data in this report was compiled by data provided by Xceligent, a leading provider of verified commercial real estate information. For more information on details of this month's report, please contact the Board at 404.250.0051.