Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Industrial Markets to Watch. Not the largest, or the most actively contested markets, the 2014 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.
TOP INDUSTRIAL MARKET TO WATCH : Atlanta, GA
Construction pumped more than 4.5 million square feet of new space into Atlanta’s industrial market in 2013, the largest addition since 2008. Build-to-suits accounted for more than three-fourths of the new space, however, and the additional speculative construction paled in the face of ravenous demand. Absorption hit a post-recession high of nearly 11 million square feet, driven chiefly by small and mid-sized companies. The vacancy rate plummeted 120 basis points from the previous year to end 2013 at 12 percent. The surge in construction and an increasing average rental rate both reflect the difficulty that tenants face in seeking modern, well-located space for growth. Although massive deals such as Home Depot’s 1.3 million-square-foot e-commerce center and a 1 million square- foot project for Procter & Gamble tend to dominate Atlanta’s real estate headlines, investors will find numerous opportunities catering to the small and mid-sized businesses that accounted for nearly 80 percent of the market’s industrial absorption in 2013.
To read more on Atlanta, and other top industrial markets, download the full version of the Top Industrial Markets to Watch report below.
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