There is some good news in Atlanta as the area’s industrial market maintained its upward momentum in the first quarter.
As Mike Sivewright, JLL’s Market Director for the Atlanta region, noted, “The spigot is open for new development.”
Based on recent activity, the market does not appear worried about oversupply, and tenant requirements remain considerable. The increased tenant demand is manifesting itself in a demand for bigger and newer spaces, and this is resulting in an increase in construction activity.
The vacancy rate for industrial properties stood at 8.3 percent at the end of the first quarter, down from 8.7 percent at the end of 2014, and net absorption reached 3.1 million square feet during the first three months of the year. The Airport/South I-85 and Northeast submarkets were the objects of the vast majority of tenant demand, accounting for more than 80 percent of the net absorption.
For more about this positive upswing, click here.