As 2014 winds down, it’s clear Atlanta’s industrial real estate market has regained its footing, with vacancies dropping and spec development returning. Furthermore, the sector is poised for further improvement in the year ahead. That’s the word from JLL’s Wit Truitt in a guest blog post he penned for the Atlanta Business Chronicle. Here’s a key excerpt:
With operating fundamentals headed in the right direction, developers are finally building new product. New construction in Atlanta totaled 12.4 million square feet at the end of the third quarter — nearly 40 percent of which was speculative, JLL research says. That 12.4 million square feet stems from 24 projects, which shows new construction is focused on large, big-box facilities. Just a couple of years ago, you would have evoked peals of laughter if you brought up the subject of industrial spec development in our city, but the subject isn’t so funny anymore. 2014 has definitely marked the return of spec construction to Atlanta.
Spec projects underway include Panattoni’s 750,000-square-foot distribution center in the Lambert Farms Logistics Park in Henry County. This summer, IDI Gazeley, which was the first developer to build a spec industrial property in metro Atlanta after the recession, announced it was building another 1 million square feet of spec properties in the area.
To read the entire blog post, visit the Atlanta Business Chronicle’s Real Talk blog.