Since our year-end 2021 Industrial Pipeline Report, the macro fundamentals of industrial real estate have experienced seismic shifts that have had some immediate impacts on current development activity, and will surely impact development moving forward. In the second half of 2022 and beyond, developers will continue to face challenges with construction costs, construction timelines, and capital markets. “It’s very challenging to finance a project when your capital partner can’t predict their exit cap rate, lease…
Q2 2022 Atlanta Industrial Market Report
Demand for Atlanta industrial space remains very strong, if slightly below record levels experienced in 2021. Net absorption in Q2 approached 4.5 million SF, a healthy figure despite a dwindling supply of available space. Developers are active, having delivered more than 12 million SF this year and with another 47.7 million SF (a record high) underway. Supply chain disruptions continue to extend development timelines, which will continue to impact available space options for new and…
Q2 2022 Atlanta Office Market Report
Atlanta’s office market is back in positive territory in 2022, recording nearly 1 million SF of net absorption through midyear. Midtown is attracting the greatest share of occupancy gains with Q2 absorption just north of 620,000 SF. Overall leasing activity is up 35% relative to Q2 of 2021 and the vacancy rate fell for the first time in nearly four years. While overall activity still pales in comparison to pre-pandemic levels, relocation and expansion announcements…
MARKET BRIEF: HEALTHY INDUSTRIAL SECTOR WILL WEATHER ECONOMIC DISRUPTION
KEY TAKEAWAYS: Supply challenges & corresponding inflation are key headwinds to economic growth Nationally, of the 648 MSF of industrial space currently under construction, nearly 40% of it is already committed Average Atlanta industrial rents are resilient, remaining flat or accelerating in 2 of the last four U.S. recessions Atlanta rebounded quickly from the COVID-19 recession, with the second fastest job growth rate in the nation when compared to large-market peers Economic conditions have shifted…
PODCAST: Catch-up with Willie Candler
Welcome to Lee & Associates – Atlanta’s podcast ‘Lately with Lee ATL’, where we talk about Atlanta commercial real estate, office news, and everything in between. It’s been a while, but we are back with host, Willie Candler, going solo today! Tune in to catch up on the Lee Summit, exciting office updates, and more! Check out other podcasts here: https://www.lee-associates.com/atlanta/category/podcast-lately-with-lee-atl/ https://open.spotify.com/episode/7nTWtrtuUBBkitDS4CpsIl?si=9d2d5f485e794176
LEE IN THE NEWS: Lee & Associates – Atlanta Promotes Mendy Ruder to Principal
June 29, 2022 (Atlanta, Georgia) – Lee & Associates – Atlanta is pleased to announce the promotion of Mendy Ruder to Principal! Mr. Ruder specializes in tenant, landlord, and owner/user representation, specifically for local and national companies that occupy manufacturing, distribution, logistics, and service facilities. Since joining Lee & Associates in November 2020, Mr. Ruder has completed over $20 million in transaction volume. Working on industrial real estate transactions in Atlanta and across the country,…
MARKET BRIEF: INFLATION, SUPPLY, & LABOR CONSTRAINTS WON’T DERAIL INDUSTRIAL EXPANSION
WHAT YOU NEED TO KNOW Demand for industrial space remains at unprecedented levels Inflation and supply chain challenges are short-term headwinds to growth The economy overall is expected to cool, but GDP to remain positive in 2022 (2.3%) and 2023 (2.1%) Durable structural trends such as in-migration and retail spending will drive continued industrial growth It’s no secret demand for Atlanta Industrial space has reached record highs, recently peaking at more than 40 million sq….