Shallow Bay Rules the Day
In Poor Performing Market, Shallow Bay Warehouses Outperformed

While Atlanta’s industrial market losing more than 4 million square feet in net absorption, shallow bay warehouses posted strong gains. The product tallied positive absorption of 1.5 million square feet, rebounding from an anemic 2008.

The real loss was felt in big box industrial warehouses, which posted more than 4.5 million square feet in negative net absorption – the worst performance in nearly a decade.

Rents overall continue to fall. Triple net rents fell from $3.80 per square foot to $3.50 per square foot through 2009.

But lower rents and creative incentives are driving activity back into the market. Ackerman & Co. sees bigger deals kicking tires with companies seeking to lock in decade-low rates and reformat distribution networks.


Atlanta Industrial Market Profile Q4 2009

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