The Atlanta Commercial Board of REALTORS® (ACBR), the largest commercial REALTOR® association in the country, released its Q1 2017 Industrial Brief on industrial market trend statistics for 22 Atlanta Industrial Sub Markets.
Q1 2017 Industrial Market Statistics
LABOR: According to the Bureau of Labor Statistics, the unemployment rate rose 0.2 percentage points from 5.1% in January 2016 to 5.3% in January 2017. The unemployment rate increased due to more people looking for work and compares favorably to Georgia (5.5%) and higher than the US (4.8%). The Atlanta metropolitan statistical area nonfarm job creation totaled 96,800 in the Atlanta-Sandy Springs-Roswell metropolitan statistical area over the past year. Industrial using jobs (industries include manufacturing and trade transportation and utilities) increased 17,700 from January 2016 to January 2017.
ABSORPTION: The Atlanta metro absorbed approximately 3.1 million square feet (msf) during 1Q 2017. Major occupiers of space included Wayfair, Samsung, Shippers Warehouse, Luxottica, Atlanta Bonded Warehouses, Crane Worldwide Turnils, Z Gallery, Victory Packaging and NDCP. Third party logistics and e-commerce companies are some of the most active tenants leasing space.
The South market recorded the most absorption for 1Q 2017 with 2.0 msf absorbed. The West market reflected
the second largest absorption total with 1.1 msf of total absorption during 1Q 2017.
VACANCY: Due to approximately 13.8 msf of space being completed during 2016 and over 2.8 msf during 1Q 2017, the overall vacancy rate increased 0.6 percentage points to 9.4% in 1Q 2017 from 8.8 % at the close of 1Q 2016. Vacancy rates were down 0.1 percentage point from 4Q 2016.
CONSTRUCTION: With the increase in demand for products due to population growth and increased economic activity in Atlanta,
developers continue to build. There are currently 28 buildings totaling approximately 11.6 msf under
construction. Through 1Q 2017, five buildings totaling 2.8 msf have been completed. Construction completions
were concentrated in the South (2.8 msf). Construction activity is expected to remain strong in 2017.
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Office Market Brief
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.