Year-End 2009 Office and Industrial Market Wrap-Up

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The year-end 2009 overall vacancy rate for the metro Atlanta office market was 19.1 percent, up from 16.9 percent at year-end 2008. Net absorption plummeted to negative 2.1 million square feet, bringing the market full circle to lows seen in the down cycle in the beginning of the decade.  Construction continued to slow significantly to 1.7 million square feet, down from 4.1 million square feet under construction at this time last year.  According the latest Georgia State University Economic Forecasting Center conference in November, metro Atlanta lost 135,900 jobs year-to-date in 2009. In response to this negative job growth, and the overall economic slowdown – no speculative office buildings in any class or submarket started construction in the second half of 2009. 

 

The overall vacancy rate for the metro Atlanta industrial market was 13.0 percent at the close of the year, up from 12.0 percent one year ago. Total annual net absorption across the metro area fell to a historical low of negative 4.1 million square feet. South Atlanta was the only submarket that posted positive net absorption of all the industrial submarkets. Metro Atlanta is home to 563 million square feet of industrial product, and at year-end only one 19,000 square foot industrial building was under construction, another historical low, down from 1.6 million square feet one year ago.

*Source – Costar Analytic Report Data with interpretation by Carter Research Department

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