Spec Development Headed Back to Atlanta?

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Industrial is on its way back, according to experts gathered at an Industrial Summit in Buckhead this week. This upswing is evidenced by activity all across Atlanta, including areas that were once considered to be dead zones like 1-20 West and Fulton Industrial. Overall, Atlanta is number three on the list of national industrial markets in terms of absorption.

The problem with the industrial outlook in Atlanta is that while leasing activity has picked up, the submarket benefit has been uneven. Right now we are seeing around 12% vacancy in industrial properties in the Atlanta market. At our current leasing rate, Atlanta will need to absorb an additional 10 million square feet before we hit the 10-10.5% vacancy mark that ushers in the beginnings of spec development.

Sources immersed in the industry don’t see this as an unattainable goal. There are several large projects floating around the market, including an 800,000 SF built-to-suit dubbed “Project Carrier” in Jackson County and a dozen more projects which plan to claim over 1 million square feet apiece.

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