Industrial Market Absorbs Record 13.9 Mil SF

ATLANTA-Atlanta’s 368 million-sf industrial market set a six-year absorption record in 2000, leasing 13.9 million sf for the year and 4.6 million sf in the fourth quarter. Vacancies dropped to 8.6% from 9% but Grubb & Ellis Co. expects they will rise again by 1% in the first half of 2001 due to a mix of economic and market factors.

Activity was greatest in two major markets, South Atlanta and the Northeast quadrant, according to Tim Schneider, vice president, Grubb & Ellis Industrial Services Group. The South Atlanta area, including Henry County where a number of large projects have been and are being developed, absorbed 4.5 million sf . Following closely was the Northeast area, including much of Gwinnett County, with 4.4 million sf.

The size of deals was across the board, Schneider tells GlobeSt.com, but “in South Atlanta, the trend was toward big deals, particularly since big blocks of space were built and available.”