In this study, we drilled down on the composition of the incredible 44.7 MSF of developments that are currently underway. Warehouse/distribution product comprised 88.7% of this total, with 15 build-to-suit and 92 speculative projects underway. Multiple sites are in development in every major submarket in the Metro, though the I-85 North Corridor is host to the highest share at 13.2 MSF of spec product.
Speculative W/D Breakdown
|Row Labels||# of Projects||Total MSF||Vacant MSF||Pre-Leased SF|
|GA 400 Corr.||4||0.6||0.6||0|
|I-20 West/Fulton Ind.||12||4.7||3.9||0.8|
|I-75 South/Henry County||8||3.1||2.6||0.4|
We also explored the size breakdown of these speculative projects; 20 big-box projects 600,000 SF+ are underway, but projects in the 100-299,999-SF range are the most plentiful. Options for new product under 100,000 SF remain limited by comparison.
Supply chain constraints and construction material shortages have extended construction timelines and caused substantial delays in deliveries, though many landlords have not publicly updated their timetables. Pre-leasing activity aligns closely with the historical trend. From the time walls are tilted and within several months of delivery, new product in Atlanta has been snapped up rapidly. This is clearly evidenced by the total market’s vacancy rate dropping from 7.1% to only 3.2% over the past five years despite the introduction of a tremendous volume of new inventory. Demand for premium warehouse/distribution product remains so robust that the market is at no risk of overbuilding. The product underway is highly-desired and is expected to lease up quickly upon delivery, regardless of timing over the next several quarters.
Click here to download the Atlanta Construction Outlook.