Skip Ribbon Commands
Skip to main content

News release

ATLANTA,GA

Jones Lang LaSalle Atlanta Industrial Outlook: Market Recovery Poised to Continue in 2012

Declining vacancy rates, positive absorption trends and the return of speculative development contribute to optimistic outlook for upcoming year.


ATLANTA, Feb. 8, 2012 – Improved market conditions indicate that the Atlanta industrial market is on pace to continue its steady recovery from the economic downturn, according to Jones Lang LaSalle’s Q4 2011 Atlanta Industrial Outlook. Positive signs include a drop in vacancy rates, the return of major speculative development and a full year of positive absorption.

“We’re seeing a number of positive developments across Atlanta’s industrial market, and it’s encouraging to see that smaller users of 100,000 square feet or less are beginning to contribute to absorption gains along with the big-box users,” said Chris Tomasulo, Senior Vice President in Jones Lang LaSalle’s Atlanta Industrial Group. “The increasing number of projects in the construction pipeline, as well as those under way, indicates that the market recovery is gaining momentum.”   
 
The positive trends in the Atlanta industrial market include:
  • A 1.5 percentage point decrease in the vacancy rate in 2011.
  • Total 2011 absorption reached 7.4 million square feet, which is the highest since 2007.
  • Users of less than 100,000 square feet contributed to the positive absorption in the fourth-quarter for the first time all year.
  • The resumption of speculative development with IDI Inc.’s planned construction of a 650,000-square-foot distribution building in the I-20 West submarket.
  • An increase in construction starts, with more than 1.4 million square feet of build-to-suit projects already announced.
Although construction starts are on the rise, the number of actual deliveries during the year is expected to fall short of total completions in 2011. That trend should contribute to the continued decline of vacancy rates across the metro area. In addition, effective rents will likely rise while asking rates stay flat as has historically been the case in the Atlanta market, according to the Q4 Industrial Outlook.

The Q4 2011 Industrial Outlook contains comprehensive statistics on all of metro Atlanta’s major industrial submarkets, including the total inventory square footage of each submarket, vacancy and availability rates, absorption totals, average asking rents and construction completions.
 
Jones Lang LaSalle has more than 700 employees in Atlanta and across Georgia providing real estate expertise in tenant and landlord representation, property management, project and development services, and investment sales. Jones Lang LaSalle’s leasing and management portfolio includes some of Atlanta’s most iconic buildings. In 2010, the firm was named one of the Best Places to Work in Atlanta by the Atlanta Business Chronicle.

About Jones Lang LaSalle 
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47.7 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com