Tuesday, February 12, 2013

4th Quarter of 2012 Shows Highest Net Absorption Since 2007

I think it’s safe to say that most people are trying not to get their hopes too high about the full recovery of the real estate market, or even the overall economy.  However, it’s hard not to be pleased after hearing that in the 4th quarter of 2012 the Metro Atlanta industrial real estate market showed the highest amount of net absorption so far since 2007. 

The most severe negative net absorption the Atlanta industrial market has gone through took place between the 4th quarter of 2008 and the 4th quarter of 2010.  Since then, net absorption has been steadily improving.  At the end of last year, the Atlanta industrial market showed three consecutive quarters of positive net absorption.  The 4th quarter of 2012 showed net absorption of 5,155,035 square feet, which is almost double that of the 3rd quarter.

In 2009, total net absorption in the Atlanta industrial market was -17 million square feet.  This is the worst figure for net absorption that this area has ever seen.  Total net absorption for all four quarters of 2012 came out to 5.2 million square feet.  This is the first year that has shown a positive figure since 2007, when net absorption totaled 8.3 million square feet. 

Total activity in the 4th quarter of 2012 was 45,828,684 square feet, which compares fairly well to the record high of 50,437,996 square feet of activity in the 4th quarter of 2007.  The last few quarters have definitely shown improvement for the Atlanta industrial real estate market.  Hopefully the next few months will bring more positive figures and good news to report!


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