JOBS, The 4 Letter Word That Will Hold It All Together

JOBS, The Ever So Important Four Letter Word... It's Effect on Demand is Paramount.

Let's talk JOBS. You know that thing where you work for a company or yourself to pay your bills. They are mega important in any market. Here is a quick background into investing. If your picking an area to invest in, you generally look at the population growth(is it growing or shrinking), the labor market (is it strong, is there growing employment), and how is the crime in said area. The leading factor in most of those metrics, JOBS!!

Atlanta developers have delivered almost 9 Million square feet of new warehousing space in Q3 throughout Metro Atlanta. This is the most completed in a single quarter in history. If you think that is impressive, it is unmatched to the record breaking 50 Million SF put under construction in Q3. The largest volume of warehouse space in Metro Atlanta's history. You think this would create a large oversupply of development. However, more industrial warehouse spaced has been leased by tenants this year then added to the market. In Q2 of this year, the Atlanta market absorbed the most industrial tenants of any U.S. city. This means the demand for industrial warehouse space in Metro Atlanta is still very strong, even despite the recent slowdown in Q3 due to overarching macro economic factors. 

My takeaway. While current macro economic factors will push pricing and demand down in Q4 & Q1 23. The demand in desirable areas will stay relatively strong compared to historical averages. In the same tone, inventory remains historically low due to sellers reluctance to let go. 

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