The coronavirus outbreak is causing significant economic disruption in Atlanta. While the full impact of the pandemic is unknown, the industrial sector may fare better than other property types in the coming months due to sustained demand for goods and logistical capabilities. Nevertheless, any disruption in trade could affect Atlanta industrial.

National and institutional investors continue to flock to industrial assets in Atlanta, with the market setting a new record for sales volume in 2019. Pricing continues to appreciate, with average sales now coming in at roughly $68/SF. Even if industrial demand slows, vacancies should remain below Atlanta’s long-term historical average. Meanwhile, rent growth continues to outperform the national benchmark.

Due to the coronavirus, commercial real estate has had to adapt to new technologies like virtual tours and proptech. These changes may lead to a permanent shift, as tenants are more likely to tour spaces that offer virtual tours. However, the industrial sector will not be impervious to the pandemic’s repercussions, but cities like Atlanta with solid e-commerce footholds and third-party logistics hubs will fare best at surviving an economic downtown.