ATLANTA
INDUSTRIAL MARKET: FALL 2023
The Atlanta industrial market’s vacancy rate increased to 5.7%, while net absorption was 1.2 MSF for the quarter and 3.6 MSF YTD. The southern Atlanta markets have a lower vacancy at 5.4% vs. 6.1%, and more net absorption - just over 764 KSF vs. 464KSF. The rental rates are almost $1 less than northern Atlanta at $8.22 vs. $9.26. There has also been a flight to newer builds (1994 or later), with YTD net absorption of 5.13 MSF. There is still a sizeable new construction pipeline, and we expect the vacancy rate to continue to rise and get closer to Atlanta’s long-term average of 8.5%.
44.1 MSF VACANT SF
5.7%
% VACANT
6.7 MSF
1.2 MSF
QRT NET ABSORPTION
DELIVERED SF
35.3 MSF UNDER CONS. SF
$8.74
QUOTED RATES
$108 / PSF SALES PRICE
TOP NEW LEASE
TOP DELIVERABLE
TOP SALE
ATKORE – 1187 CASS. WHITE RD 523,541 SF
ASHLEY CAPITAL – 300 INT’L PKY 1,010,100 SF
STERLING INVESTORS – 2 BLDGS 970,450 SF – $109.3 M / $113 PSF
BUSCH LOGISTICS PARK #A
GA NORTH IND PARK #3
GWINNETT 85 LOGISTICS
NET ABSORPTION, DELIVERIES, & VACANCY RATE NET ABSORPTION
NET DELIVERIES
VACANCY RATES 8%
50 KSF
7%
40 KSF
6% 5%
30 KSF
4%
20 KSF
3% 2%
10 KSF - KSF
1% 2018
2019
2020
2021
2022
2023 YTD
0%
Inventory SF
Total Vacant SF % Vacancy
Qrt Net Abs.
Delivered SF
Under Cons. SF Quoted Rates
Central Atlanta & Chattahoochee
22,366,045
1,557,028
7.0%
(144,713)
-
-
$12.80
GA 400 North
27,473,248
1,335,906
4.9%
21,106
-
804,002
$13.33
I-985 & North I-85 80,391,462
7,373,055
9.2%
(54,806)
669,025
7,463,296
$7.02
I-85 DeKalb & Gwinnett
140,643,091
4,686,946
3.3%
(340,449)
-
2,167,757
$10.33
I-75 North
85,337,166
6,666,145
7.8%
983,849
3,065,612
6,673,999
$9.45
I-20 East
73,382,136
3,867,530
5.3%
(223,771)
-
3,611,864
$7.80
I-75 & I-85 South
226,298,579
12,196,704
5.4%
(30,392)
2,224,152
10,775,906
$8.27
I-20 West
117,844,119
6,474,028
5.5%
1,018,297
754,780
3,819,082
$8.38
Totals
773,735,846
44,157,342
5.7%
1,229,121
6,713,569
35,315,906
$8.74
Northern Submarkets
Inventory SF
Total Vacant SF
% Vacancy
Qrt Net Abs.
Delivered SF
Under Cons. SF
Quoted Rates
Ware/Dist >1994
183,157,801
14,566,617
8.0%
239,160
3,734,637
17,071,054
$8.57
Ware/Dist <1995
141,899,786
5,432,112
3.8%
10,714
-
-
$9.89
Flex Product
31,153,425
1,620,351
5.2%
215,113
-
38,000
$13.84
Northern Totals
356,211,012
21,619,080
6.1%
464,987
3,734,637
17,109,054
$9.26
Southern Submarkets
Inventory SF
Total Vacant SF
% Vacancy
Qrt Net Abs.
Delivered SF
Under Cons. SF
Quoted Rates
Ware/Dist >1994
237,405,487
14,006,931
5.9%
829,106
2,978,932
18,206,852
$9.12
Ware/Dist <1995
168,895,531
8,098,573
4.8%
(140,868)
-
-
$6.43
Flex Product
11,223,816
432,758
3.9%
75,896
-
-
$13.80
Southern Totals
417,524,834
22,538,262
5.4%
764,134
2,978,932
18,206,852
$8.22
Southern
Northern
Submarket
OCCUPIED VS VACANT
ABOUT SKCR (5.4%)
250M
OCCUPIED SF
(5.3%)
I-7
VACANT SF
0W I-2
5&
I-8
5S
0E I-2
I-7
5N
(4.9%)
CH CE AT NT TA RA HO L A OC TL HE & E GA 40 0N I-9 85 &I -85 N I-8 5D GWEKA IN LD NE & TT
50M
(7.0%)
100M
(7.8%)
(9.2%)
150M
(5.5%)
(3.3%)
200M
SK Commercial Realty is a full-service real estate brokerage selling, buying, and leasing office, industrial, medical, retail, and land properties. We offer project consulting services, property management, accounting, and investment services. SKCR is committed to our clients, partners and employees, our industry, and the community. We have been providing effective real estate solutions to clients throughout the southeast since 1985. Each transaction is treated with the same level of care and attention no matter the size or type, and each is managed by an experienced and knowledgeable team of brokers. SKCR has developed and acquired over 5,000,000 square feet of property, and has also grown to accomodate over 25 brokers and a team of nearly 20 staff accountants, managers, architects, marketing professionals, and leadership roles. SKCR has won the Cobb County Small Business of the Year award several times, making them the leading independent commercial real estate brokerage in the county. Learn more by visiting www.skcr.com or calling 404.252.1200.
Source: CoStar data comprised of metro Atlanta industrial market buildings 20,000 RSF and greater. Report by Scott Crooks and Claire Blevins. Copyright 2023.