Industrial Back in Force

Industrial Development

In the past month we’ve detailed several large industrial deals taking place in the Atlanta market, including Dick’s Sporting Goods’ and Hitachi Kiki USA’s recently signed leases. These two deals are just a fraction of the enormous amount of industrial space that has been absorbed in the Atlanta market over the past several quarters. In the last four quarters alone, more than 13 million SF of industrial space has come off the market – 5.5 million of those were in the first quarter of this year.

The good news is that this industrial growth shows no signs of slowing, as there are still more than 54 million SF of industrial prospects in the pipeline. While many companies in the market are choosing built-to-suit options, we haven’t seen much activity in the spec arena – which is probably a good thing given the recent past. Lower vacancies and increased absorptions will lead to higher rental rates and further encourage new development in the industrial sector.

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