Marcus & Millichap

Atlanta Industrial Investment Forecast

2019 Outlook

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Broad Array of Industries Power Atlanta Industrial Performance, Elevating Investment Demand

Consistent absorption pushes vacancy to new cycle low; rent growth remains robust. A wide scope of industries, including automotive manufacturers and suppliers, have underpinned rapid absorption of industrial assets in Atlanta. Net absorption has averaged nearly 20 million square feet annually for the past five years, pushing vacancy below 6 percent. Locations in South Atlanta near the airport and the far northern suburbs have proved to be the most popular locales, leading to a consistent slate of new supply. This year’s pipeline will fall slightly below the three-year average of 19.5 million square feet, while containing seven office parks in excess of 1 million square feet each, underscoring the size and scale of industrial properties currently underway. Sites near the airport remain the most popular for development, with roughly half of this year’s injections expected to come online within 5 miles of the logistics hub. As a result, the average asking rent will remain on an upward trajectory, recording the seventh straight annual increase.

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