Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Atlanta Industrial Construction Study

Christa DiLalo • 4/29/2022
Atlanta’s industrial construction pipeline has been more active in the past two years than any point in history.

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 
Airport/S ATL     1.9   1.9   
GA 400 Corr.     0.6   0.6   0
I-20 East/Snapfinger   7   1.5   1.5   0
I-20 West/Fulton Ind.   12   4.7   3.9   0.8
I-75 North   12   5.1   3.1   2.0
I-75 South/Henry County   8   3.1   2.6   0.4
I-85 North   29   13.2   11.8   1.4
I-85 South   12   4.4   4.3   .08
Grand Total   92   34.3   29.6   4.7

 

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. 

Related Insights

2019 US Industrial Construction Map
Research • Industrial

Industrial Construction Map

Use Cushman & Wakefield's interactive map to find out how much industrial commercial real estate construction activity is taking place in select United States cities.
4/6/2022
0821NAMYPortswebcard
Research • Industrial

North American Ports Report

To keep up with this pace of goods coming into the continent, the North American industrial market has absorbed over 217 million square feet (msf) in the first half of 2021 alone, a 94% increase over the first half of 2020.
Carolyn Salzer • 9/1/2021
MRI 2020 (image)
Research • Industrial

Global Manufacturing Risk Index

Cushman & Wakefield’s 2021 Global Manufacturing Risk Index assesses the most advantageous locations for global manufacturing among 47 countries in Europe, the Americas and Asia Pacific.
Dr. Dominic Brown • 8/11/2021

Interested in learning more?

Get in touch and we can assist with any additional information you need.

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on  Cookies

MORE OPTIONS
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS