Mid-Year 2023: Industrial Pipeline
The headwinds of frozen capital markets, declining leasing activity, and elevated construction costs combined have ceased almost all speculative development. In most submarkets, even if the land were free, there is no way to justify speculative development for the merchant developer who plans to exit upon stabilization. As a result of the banking crisis and increased interest rate environment, developers’ ability to secure construction loans for new speculative projects is almost impossible. Eighteen months ago…
Q2 2023 Atlanta Office Market Report
Atlanta’s office market hit a 12-year high at 19.1% vacant at the end of Q2 2023. This time last year, companies absorbed 1.3 MSF, in stark contrast to this quarter’s -1.6 MSF. While leasing activity increased from last quarter, tenants continue to evaluate current footprints and determine future space requirements. AT&T, a major player in Atlanta’s office market, shed almost 500,000 SF in Q2 2023 as it announced consolidation, but in early July committed to…
Q2 2023 Atlanta Industrial Market Report
After record-setting activity in 2021 and 2022, Atlanta’s industrial market slowed in the first half of 2023. While industrial demand remains high, a slow deal process coupled with market uncertainty led leasing activity to decline to 6,460,974 SF in Q2 2023, the lowest level since Q3 2011. Sublease availability also grew by more than 3.2 MSF in Q2. Decelerating activity has not discouraged landlords from increasing rents, which hit a new record high of $8.32…
Q1 2023 SAVANNAH INDUSTRIAL MARKET REPORT
The rapid growth in goods spending and increased imports to the fast-growing Port of Savannah has led to record demand for industrial space. After decreasing for three consecutive quarters, vacancy has increased to 2.7% in Q1 due to the timing of new deliveries. Leasing activity rebounded in Q1 with record absorption after a considerable slowdown in the second half of 2022. The largest leasing transaction for the quarter was a 1,231,693 SF building to be…