The industrial sector in Atlanta has a strong foothold as a regional and national distribution hub. The unpredictability of the COVID pandemic’s effects on trade economy can cause disruption in the longterm. The charts below highlight a few key performance indicators of the industrial real estate in Atlanta. Compared to a year ago the square footage of inventory and under construction has increased along with vacancy rates and market rent price. The low vacancy rates have allowed for price to be controlled largely by landlords. The rent growth has continued to increase and seems unaffected by the pandemic.
Due to the projected growth of the Southeast region, there aren’t many concerns for Atlanta’s industrial real estate sector. Even though absorption was low in the first quarter of 2020 it has shown to rebound since in the second quarter while construction has also increased. Atlanta currently ranks in the top five for construction of industrial space with approximately 24.8 million square feet. in 2019, Atlanta set a record in sales volume however there has been a steady decline since the pandemic hit in 2020. Although, there has been a rise in price per square foot, it is well below the national average. The increase in prices seen is largely due to net operating income growth as rent growth increases. The majority of investors are out of state. About 75% of Atlanta’s buyer volume is traced to firms outside of Georgia while for a firm like Blackstone local holdings are approximately 4% of the entire market.
All data from CoStar Group