The third quarter indicated strong performance in Atlanta’s office and industrial markets, with office vacancy rates holding steady and industrial vacancy rates decreasing slightly. Miami’s industrial market and Orlando’s office market also experienced a decrease in vacancy rates last quarter.
In Atlanta, the office market ended the third quarter with a vacancy rate of 14.9 percent, holding steady over the previous quarter. The city’s office market also saw 15,692 square feet in negative net absorption and 128,944 square feet in deliveries. Industrial vacancy in Atlanta decreased to 6.3 percent, representing a 0.3 percentage point decrease over the previous quarter.
Miami office vacancy increased to 8.5 percent in the third quarter, with net absorption totaling positive 66,782 square feet. Industrial vacancy in the market decreased to 3.8 percent, down slightly from 3.9 percent in the previous quarter. A total of eight buildings delivered to the market in the quarter totaling 1,332,445 square feet, with 5,434,126 square feet still under construction at the end of the quarter.
The office vacancy rate in the Orlando market decreased slightly to 6.9 percent at the end of the third quarter, compared to 7.0 percent at the end of the second quarter. Net absorption totaled positive 172,728 square feet this quarter. Vacancy rates in the industrial market increased from 4.0 percent at the end of the second quarter to 4.2 percent in the third quarter. A total of 10 buildings delivered to the market totaling 1,179,456 square feet.