How Does Savannah's Port Impact Atlanta's Metro?

ATLANTA— Atlanta's industrial market is extremely healthy. That's not exactly groundbreaking news, but there are factors to consider when it comes to the port and how its success is rippling through the commercial real estate sector.

Atlanta closed the second quarter with 6.5 million square feet of industrial absorption, CBRE reports. That's partly due to the advancements at the port, and also due to factors like population growth, labor availability and omnichannel or e-commerce strategies, which have become pivotal for retailers, according to Dan Wagner, CBRE Southeast Division Research Director.

GlobeSt.com caught up with Wagner to understand how the port affects the metro area in part two of this exclusive interview. You can still read part one. Georgia Ports Driving Demand for South Atlanta's Industrial Market.

“Very strong historical and projected population growth has presented tremendous opportunity for both owners and occupiers of industrial product,” Wagner tells GlobeSt.com.  “We expect this will continue as the servable consumer base continues its expansion.”

That's not the end of Wagner's port-related industrial expectations. He also predicts e-commerce and logistics companies will continue growing.

That, he says, means market activity should remain strong. In terms of new supply, he says, we're seeing a healthy level of development in the pipeline, however, demand has far outpaced supply.

(Atlanta is breaking records on this commercial real estate front. Check it out.)

“In the last two years we've delivered 40 million square feet of new space,” Wagner says. “And while some of this was comprised of build-to-suit product, vacancy still managed to fall by one full percentage point during this time.”

ATLANTA— Atlanta's industrial market is extremely healthy. That's not exactly groundbreaking news, but there are factors to consider when it comes to the port and how its success is rippling through the commercial real estate sector.

Atlanta closed the second quarter with 6.5 million square feet of industrial absorption, CBRE reports. That's partly due to the advancements at the port, and also due to factors like population growth, labor availability and omnichannel or e-commerce strategies, which have become pivotal for retailers, according to Dan Wagner, CBRE Southeast Division Research Director.

GlobeSt.com caught up with Wagner to understand how the port affects the metro area in part two of this exclusive interview. You can still read part one. Georgia Ports Driving Demand for South Atlanta's Industrial Market.

“Very strong historical and projected population growth has presented tremendous opportunity for both owners and occupiers of industrial product,” Wagner tells GlobeSt.com.  “We expect this will continue as the servable consumer base continues its expansion.”

That's not the end of Wagner's port-related industrial expectations. He also predicts e-commerce and logistics companies will continue growing.

That, he says, means market activity should remain strong. In terms of new supply, he says, we're seeing a healthy level of development in the pipeline, however, demand has far outpaced supply.

(Atlanta is breaking records on this commercial real estate front. Check it out.)

“In the last two years we've delivered 40 million square feet of new space,” Wagner says. “And while some of this was comprised of build-to-suit product, vacancy still managed to fall by one full percentage point during this time.”