The industrial real estate market continues to improve in the South. At the end of the third quarter, Atlanta’s industrial vacancy rate stood at 9.8 percent, a drop of nearly 1.5 percentage points from the beginning of the year. Two of the Southeast’s other major markets – Orlando and South Florida – also have experienced noticeable declines in their vacancy rates over the course of 2014.
With industrial occupancies headed in the right direction, it should come as no surprise that the manufacturing sector in the South is bustling. The Southeast Purchasing Managers Index (PMI) reached 56.5 in October. The Southeast PMI measures the activity of the manufacturing sector in a six-state region that includes Florida and Georgia; a score above 50 means the sector is growing, while one below the mark indicates it’s contracting. This year, the index has been above 50 every month.
The South also is experiencing an ongoing recovery in its housing markets. In the third quarter, the median price of a single-family home in the region grew by 4.5 percent, to more than $189,000, when compared to one year earlier.
The trends discussed above are illuminated in more detail in the infographics below.