In 2024, Atlanta’s industrial sector confirmed continued development, with each transaction exercise and its pipeline posting development on a year-over-year foundation. As of December, the metro had an annual complete of almost $2 billion in gross sales.
Furthermore, the market had 8.2 million sq. toes underneath improvement throughout the identical interval, considerably surpassing the three.3 million sq. toes recorded in December 2023.
Regardless of this development, the metro’s emptiness charge elevated 310 foundation factors year-over-year, because the inflow in new provide put a dent within the metro-level common. All year long, 9.3 million sq. toes of commercial house was delivered.
Nevertheless, latest main initiatives underscore the market’s resilience and robustness. In January, Hines and Aubrey Corp. introduced plans for a ten million-square-foot mixed-use improvement, encompassing greater than 2,390 acres. The commercial phase of this venture will occupy greater than 1,200 acres throughout two campuses, with the remainder of the house getting used for information middle, retail, lodge and residential functions.
Growth pipeline grows, nonetheless under nationwide common
On the finish of December, Atlanta’s industrial sector had 8.2 million sq. toes underneath building, greater than double the three.3 million sq. toes registered in December 2023. The 26 initiatives within the pipeline are anticipated to account for 1.4 p.c of the metro’s complete stock.
The market’s improvement index was under the 1.7 p.c nationwide common, however above peer markets reminiscent of Chicago (0.5 p.c), Indianapolis (1.2 p.c) and New Jersey (1.0 p.c). Phoenix (4.5 p.c) continued to guide nationally.
On the finish of the 12 months, The Broe Group acquired a 14-acre web site in Georgia’s Fulton County Industrial District for the development of a 225,000-square-foot build-to-suit facility. The constructing can have rail service, with pad-ready building anticipated this February.
Moreover, 18 initiatives totaling virtually 4.9 million sq. toes broke floor final 12 months. Considered one of them is Stonemont Monetary Group’s Stonemont Park 75 South, a 903,701-square-foot industrial improvement in Locust Grove, Ga. In June, the agency obtained a $42.5 million building mortgage for the three-facility campus.
Industrial completions stay regular
Final 12 months, Atlanta’s industrial market noticed 26 properties coming on-line, totaling virtually 9.3 million sq. toes—about 1.6 p.c of the metro’s complete stock. This determine was barely decrease than the 9.7 million sq. toes accomplished in 2023.
In comparison with peer markets, solely Indianapolis (6.1 million sq. toes) and Kansas Metropolis (4.5 million sq. toes) noticed much less house delivered. Phoenix (32.7 million sq. toes) noticed essentially the most completions, adopted by Dallas (29.1 million sq. toes) and Chicago (14.9 million sq. toes).
Final 12 months, Panattoni Growth accomplished the just about 1.4 million-square-foot Constructing 6 inside Speedway Commerce Middle, a 546-acre industrial campus in Hampton, Ga. Goal agreed to prelease the distribution middle in October 2023.
Belongings commerce for much less, funding quantity grows
Atlanta’s industrial funding quantity reached roughly $2 billion final 12 months, about $100 million larger than in 2023. Nevertheless, belongings traded on common for $108 per sq. foot, a slight year-over-year lower from $116.
Amongst peer markets, New Jersey ($213 per sq. foot) and Phoenix ($162 per sq. foot) remained within the highlight, whereas Chicago ($92 per sq. foot) and Indianapolis ($73 per sq. foot) had been on the reverse finish of the spectrum.
In one of many largest offers within the metro from final 12 months, ATCAP Companions bought Gwinnett Park, a 12-building, 753,700-square-foot mild industrial park. Dogwood Industrial Properties, an funding platform of TPG Actual Property, bought the campus accomplished between 1973 and 1986.
Atlanta’s emptiness charge among the many lowest nationally
On the finish of December, Atlanta’s industrial emptiness charge clocked in at 6.8 p.c, 310 foundation factors larger year-over-year. Nevertheless, the determine continues to be 1.2 p.c under the nationwide common. Amongst peer markets, the metro had one of many lowest emptiness charges, whereas Indianapolis (9.8 p.c) and Chicago (9.7 p.c) had essentially the most out there house.
In November, Samaritan’s Purse signed a 172,000-square-foot, full-building lease at a warehouse at 1347 Freeway 92 in Acworth, Ga. The charitable group will use the house to course of Christmas presents for youngsters. Prologis acquired the power in 2023 from Hyperlink Logistics.
Different notable leases within the space embody Souto Meals’ dedication to 200,000 sq. toes at Sugarloaf Logistics Hub, a 2.2 million-square-foot master-planned industrial improvement in Lawrenceville, Ga. Foxfield and AEW Capital Administration are the house owners of the property that additionally features a chilly storage ingredient.
