The latest industrial market report for Atlanta in Q3 2024 has been released by Avison Young. Here are the key takeaways:
– Leasing activity increased by 17.5% compared to the previous year, reaching a total of 9.4 million square feet – the highest since 2022.
– This quarter saw record-breaking leasing numbers, surpassing even those of Q4 in 2022.
– The increase in activity has also led to an impressive absorption rate increase of 80% from last quarter.
– However, there has been a significant decrease (over 80%) in groundbreakings for new construction projects compared to their peak levels seen back in 2021.
– In total, only27 buildings with a combined area of7.7 million square feet broke ground this year as opposed to125 buildings and40.3 million square feet that were constructed back then.
Given that vacancy rates continue on an upward trend, slowing down development should help improve overall health within Atlanta’s industrial market.
During Q3of2040 leases signed accounted for54%of deals made which were less than50 thousand squarefeet each; these smaller-sized leases have playeda major rolein drivingthe sector’s strength forward accordingto Connect CRE .
