Integra Realty Resources (IRR) has released its mid-year report on Atlanta’s industrial and office markets, and the news is positive. Employment continues to improve, the real estate market is flourishing – especially intown – and the movie industry continues to boost Atlanta tourism. The outlook for the Atlanta industrial market is also strong with higher rents, lower vacancies and positive absorption.
Here is a closer look at the industrial and office market indicators:
Employment
- Through June, Atlanta employment exceeded 2.6 million, which is 400,000 above prerecession levels
- The state’s mid-year unemployment rate in June was 5.3%, down from 6% in 2015
Industrial Market
- Slightly declining vacancy rates
- New construction with high rents is fostering rental increases; rental escalations of 2% - 3% annually are projected
- Improving economy and growth of internet sales is spurring growth
- With 3.1 million square feet under construction, South Atlanta is the largest warehouse/distribution submarket
- Significant projects include:
- One million square feet for speculative building at Majestic Airport Center IV
- One million square feet in Social Circle for Baxter Pharmaceuticals
Office Market
- Several companies in the growing technology industry recently leased Midtown office space
- Increasing number of companies seek intown locations to attract millennials
- Tenants continue to seek higher quality office space
- Overall construction employment is surging as housing construction levels improve
- Suburban office vacancy rates are slightly declining
To view all IRR’s mid-year Atlanta reports, please click here.