Hot and Cold Markets for Absorption in 2012

The hottest areas for absorption in the Metro Atlanta industrial real estate market turned out to be almost the same markets that were the hottest for new and used available space.  However, the Fulton Industrial market is by far the strongest when comparing amounts of positive net absorption.  At the end of 2012, it accounted for 44% of the total amount of absorption in the Metro Atlanta industrial market.  The I-85/985/316 market accounted for 14.9% and the Northwest market accounted for 14.7% of positive net absorption in Atlanta.  It is also worth noting that the Airport/I-75 South region was close behind with 14.4%.  Amount of square footage of positive net absorption in each of these markets are as follows:

I-20 West/Fulton Industrial:  3,125,444 sf

I-85/985/316:  1,058,524 sf

Northwest:  1,045,278 sf

I-75 South/Airport:  1,022,224 sf

The coldest markets for absorption in 2012 were the City of Atlanta, I-85 Northeast, and I-75/Paulding County regions.  These three regions were the only ones in Metro Atlanta to report negative net absorption.  The City of Atlanta region made up for 64.7% of the total negative net absorption, while I-85 Northeast accounted for 33.4% and I-75/Paulding County accounted for 2.1%.  Amount of square footage of negative net absorption in each of these markets are as follows:

City of Atlanta:  -1,261,300 sf

I-85 Northeast:  -653,758 sf

I-75/Paulding County:  -40,107 sf

Do you think these hot and cold markets will follow a similar trend for the remainder of 2013?

Allison Evans
King Industrial Realty
Associate