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Industrial Report

United States | Atlanta, GA

Report | Atlanta Industrial Outlook - Q2 2011

Summary

The second quarter brought more of the same malaise that has kept the Atlanta economy in a holding pattern since the end of the housing boom.  

Though it looked like the market was ready to turn the corner after a strong first quarter, leasing activity has continued to be weak and occupancy rates have stayed anchored. The warehouse and distribution sector is seeing the greatest churn; many local players are relocating or reconfiguring space and taking advantage of upgrade opportunities.


Leasing and occupancy have strengthened in the Northeast and Airport/South I-85 markets, but remain weak elsewhere. Henry County and Fulton Industrial in particular remain battered by the lack of a meaningful recovery in the regional economy. There has been a noted uptick in demand in the 30 to 70,000 square foot range, but not enough to significantly affect supply. This is keeping leasing conditions tenant favorable in the bulk of the market.

 

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