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GREATER ATLANTA BIG BOX / BULK DISTRIBUTION MARKET REPORT Fall 2017 Preview

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Page 1: GREATER ATLANTA - Lee & Associates...greater atlanta big box / bulk distribution . market report. fall 2017 . preview

GREATER ATLANTABIG BOX / BULK DISTRIBUTION MARKET REPORT

Fall 2017

Preview

Page 2: GREATER ATLANTA - Lee & Associates...greater atlanta big box / bulk distribution . market report. fall 2017 . preview

Fall 2017 Preview

1

Report AnalyticsThe Big Box Industrial report provides you with updates and changes to the availability of the buildings that contain 200,000 square feet or more since our 2017 Spring Preview Edition, the status of the Atlanta industrial market, trends and forecasts.

Property Name Address Submarket Tenant SF Lease Type

Owens Corning 8095 McLarin Rd South Atlanta Owens Corning 1,044,288 Renewal

Lambert Farms Logistics Park King Mill Rd South Atlanta Lindt 1,004,400 New

Pendergass 85 Logistics Ctr King Mill Rd Northeast Atlanta Kubota 398,785 New

Hartman III 600 Hartman Industrial Ct I-20 W/Douglasville Keystone Automotive 350,819 Renewal

Southfield 5165 Kennedy Rd South Atlanta All South Warehouse 297,000 Renewal

Snapshot Data Based on availabilities contained in this report, as of 08/08/17Contiguous space over 200,000 SF

Last Update (Spring Preview 2017)

Current Level (Fall Preview 2017)

Number of Buildings: 41 Number of Buildings: 46

RBA: 17,027,570 SF RBA: 21,840,652 SF

*Avg Building Age (yrs): 17.2 *Avg Building Age (yrs): 17.9

2016 YTD Deliveries 25,250,708 SF 2017 YTD Deliveries 9,033,774 SF

Direct Average Rate $3.65/nnn Direct Average Rate $3.38/nnn

Sublet Average Rate $3.25/nnn Sublet Average Rate $3.25/nnn

Total Average Rate $3.63/nnn Total Average Rate $3.37/nnn

• 200,000+ Square Feet• 20’ Clear Ceilings and Above

• Minimal Office Build-Out• Available in 90 Days or Less

Bulk Distribution Centers Defined as:

Fall 2017 Preview

*Lee Atlanta Deal

Address Submarket Buyer Seller SF Sales / PSF

5000 Bohannon Rd South Atlanta TA Realty Associates Core5 Industrial Partners 873,800 $62.0 M / $71

8095 McLarin Rd South Atlanta Clarion Partners USAA Real Estate Company 1,044,288 $54.8 M / $52

7800 Third Flag Pky I-20 W/Douglasville Blackstone Real Estate High Street Realty Company 344,932 $20.5 M / $59

237 Greenwood Industrial Ct South Atlanta Exeter Property Group Starwood Property Trust 455,000 $14.7 M / $32

Notable Lease Transactions

Notable Sales Transactions

Big Box Inventory & Transaction Summary Data

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Lee & Associates - Big Box Industrial Report

Source: Bureau of Labor Statistics, Georgia State University Economic Forecasting Center, Bureau of Economic Analysis

6.8%Vacancy7.5%

16,963,258 SFUnder Construction

6,127,566 SFNet Absorption6,704,331 SF

4,686,730 SFLeasing Activity

$4.49 SFAverage Asking Rent (per year)

$343 M154 Sales Transactions

6,960,252 SFNew Supply Delivered

$53.00 SFAverage Sales per SF

The Atlanta Industrial market ended Q2 with 6,127,566 SF of net absorption, bringing YTD absorption to 12,831,897 SF.

The vacancy rate decreased this quarter to 6.8%.

Lease activity increased this quarter nearly 4.7M SF.

Construction activity decreased to 16,963,258 SF under construction in the Atlanta market due to the vast increase in delivered buildings.

Delivered SF increased more than four-fold this quarter.

Rental rates remained at $4.49 SF.

The largest industrial sales transaction for the quarter was 8095 McLarin Rd, a 1,044,288 SF industrial building that sold for $41.91 PSF.

Q2 2017 had $343 Million in transaction volume; a total of 154 sales.

Q2

Q2

Q2

Q1

Q1

=

Q2 2017 Atlanta Overall Industrial Market Report

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2160 Anvil Block RoadEllenwood, GA 30294Size: 848,421 SF

Available SF: 441,796 SF

Sale / Lease: $3.35 PSF

Ceiling: 36’ clear

Year Built: 2016

4575 Lake Mirror PlaceForest Park, GA 30297Size: 417,500 SF on 15.8 Acres

Available SF: 417,500 SF

Sale / Lease: Withheld

Ceiling: 20’-21’ clear

Year Built: 1962/Reno 1975

2110 Lawrence AveEast Point, GA 30344Size: 538,500 SF on 22.7 Acres

Available SF: 538,500 SF

Sale / Lease: $3.85 PSF NNN

Ceiling: 32’ clear

Year Built: 2016

2000 Logistics Center DrFairburn, GA 30213Size: 495,625 SF on 184 Acres

Available SF: 495,625 SF

Sale / Lease: $3.75 PSF NNN

Ceiling: 36’ clear

Year Built: 2017

1791 Mount Zion RoadMorrow, GA 30260Size: 514,461 SF on 24.7 Acres

Available SF: 514,461 SF

Sale / Lease: $2.50 PSF NNN

Ceiling: 22’ clear

Year Built: 1972

5265 Old Dixie HwyForest Park, GA 30297Size: 540,000 SF on 23.87 Acres

Available SF: 540,000 SF

Sale / Lease: $2.45 PSF NNN

Ceiling: 20’ clear

Year Built: 1961/Reno 1965

S Fulton Pkwy & StonewallAtlanta, GA 30349Size: 1,039,570 SF on 325 Acres

Available SF: 1,039,570 SF

Sale / Lease: Withheld

Ceiling: 40’ clear

Year Built: 2017

4071 Southmeadow PkyAtlanta, GA 30349Size: 209,918 SF on 17.83 Acres

Available SF: 98,483 SF

Sale / Lease: Witheld

Ceiling: 28’ clear

Year Built: 1991

4286 E Southmeadow PkyAtlanta, GA 30349Size: 400,125 SF on 78.08 Acres

Available SF: 400,125 SF

Sale / Lease: Withheld

Ceiling: 36’ clear

Year Built: 2017

South Atlanta

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2750 Sullivan Road College Park, GA 30337Size: 205,541 SF on 17 Acres

Available SF: 205,541 SF

Sale / Lease: Withheld

Ceiling: 32’-44’ clear

Year Built: 1972/Reno 2016

200 Eagles Landing PkwyStockbridge, GA 30281Size: 400,000 SF on 29.6 Acres

Available SF: 399,177 SF

Sale / Lease: $2.75-$3.15 PSF

Ceiling: 30’ clear

Year Built: 1998

237 Greenwood Ind. CourtMcDonough, GA 30253Size: 455,000 SF on 28.38 Acres

Available SF: 455,000 SF

Sale / Lease: Withheld

Ceiling: 32’ clear

Year Built: 2001

250 Declaration Dr McDonough, GA 30253Size: 759,300 SF on 61 Acres

Available SF: 759,300 SF

Sale / Lease: $2.95 PSF

Ceiling: 32’ clear

Year Built: 2001

471 Eagles Landing PkwyStockbridge, GA 30281Size: 324,000 SF on 30.6 Acres

Available SF: 324,000 SF

Sale / Lease: $2.75 PSF

Ceiling: 24’ clear

Year Built: 1989

220-230 Greenwood CtMcDonough, GA 30253Size: 504,000 SF on 27.9 Acres

Available SF: 504,000SF

Sale / Lease: Withheld

Ceiling: 30’-33’ clear

Year Built: 2000

159 Westridge Pkwy McDonough, GA 30253Size: 612,551 SF on 44.61 Acres

Available SF: 612,551 SF

Sale / Lease: $3.45 PSF NNN

Ceiling: 36’ clear

Year Built: 2017

3100 Southpark BlvdEllenwood, GA 30294Size: 451,200 SF on 18.69 Acres

Available SF: 451,200 SF

Sale / Lease: Withheld

Ceiling: 32’ clear

Year Built: 2004

130 Greenwood Ind. PkwyMcDonough, GA 30253Size: 490,961 SF on 25.19 Acres

Available SF: 490,961 SF

Sale / Lease: $3.15 PSF

Ceiling: 28’ clear

Year Built: 1997

South Atlanta

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700 Hudson RoadGriffin, GA 30224Size: 218,120 SF on 15.19 Acres

Available SF: 218,120 SF

Sale / Lease: Withheld

Ceiling: 28’-32’ clear

Year Built: 2002

150 Greenwood Ind. PkwyMcDonough, GA 30253Size: 867,000 SF on 37.07 Acres

Available SF: 867,000 SF

Sale / Lease: $3.25 PSF NNN

Ceiling: 32’ clear

Year Built: 2006

1357 Highway 155 S-Bldg600McDonough, GA 30253Size: 267,503 SF on 19.63 Acres

Available SF: 267,503 SF

Sale / Lease: Withheld

Ceiling: 32’ clear

Year Built: 2017

1559 Highway 155 S McDonough, GA 30253Size: 211,455 SF on 15.05 Acres

Available SF: 211,455 SF

Sale / Lease: Withheld

Ceiling: 32’ clear

Year Built: 2016

South Atlanta

731 Cassville White RoadCartersville, GA 30121Size: 265,200 SF on 34 Acres

Available SF: 265,200 SF

Sale / Lease: Withheld

Ceiling: 30’ clear

Year Built: 2016

Northwest

1095 Cass White Road NE White, GA 30184Size: 1,036,000 SF on 74 Acres

Available SF: 370,000 SF

Sale / Lease: $3.50 PSF

Ceiling: 32’ clear

Year Built: 2016

3475 International Park Dr SEAtlanta, GA 30316Size: 386,846 SF on 22.20 Acres

Available SF: 386,846 SF

Sale / Lease: Withheld

Ceiling: 24’-34’ clear

Year Built: 1984/ Reno 1992

4650 Hugh Howell RoadTucker, GA 30084Size: 293,000 SF on 24.05 Acres

Available SF: 293,000 SF

Sale / Lease: For Sale/ $2.85 PSF NNN

Ceiling: 26’-31’ clear

Year Built: 1968

I-20 East

16126 Alcovy RoadCovington, GA 30014Size: 302,064 SF on 17.88 Acres

Available SF: 302,064 SF

Sale / Lease: $1.00-$3.65 PSF

Ceiling: 22’-26’ clear

Year Built: 1988

LEASED

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875 Maxham RoadLithia Springs, GA 30122Size: 317,000 SF on 57.65 Acres

Available SF: 247,000 SF

Sale / Lease: Withheld

Ceiling: 30’ clear

Year Built: 2000

1265 Terminus Dr Lithia Springs, GA 30122Size: 527,000 SF on 39.86 Acres

Available SF: 527,000 SF

Sale / Lease: Withheld

Ceiling: 32’ clear

Year Built: 2001

425 Hartman Road Austell, GA 30168Size: 354,620 SF on 32.80 Acres

Available SF: 354,620 SF

Sale / Lease: Withheld

Ceiling: 32’ clear

Year Built: 2006

440 Interstate West Pkwy Austell, GA 30168Size: 781,440 SF on 67.62Acres

Available SF: 781,440 SF

Sale / Lease: Withheld

Ceiling: 36’ clear

Year Built: 2017

6150 Xavier Dr SW Atlanta, GA 30336Size: 542,432 SF on 27.63 Acres

Available SF: 363,427 SF

Sale / Lease: $7.50 PSF NNN

Ceiling: 24’ clear

Year Built: 1972/ Reno 1986

105 Kendall Park LaneAtlanta, GA 30336Size: 408,600 SF on 32.21 Acres

Available SF: 408,600 SF

Sale / Lease: Withheld

Ceiling: 32’ clear

Year Built: 2002

I-20 West / Fulton

4975 Powder Springs Dallas RoadPowder Springs, GA 30127Size: 350,000 SF on 25 Acres

Available SF: 350,000 SF

Sale / Lease: $2.50 PSF NNN

Ceiling: 30’ clear

Year Built: N/A

Call us for:• Detailed survey of options meeting your needs• Lease review, analysis, or abstracting• Acquisition/Disposition strategies

NEARLY 70 YEARS OFEXPERIENCE ON YOUR SIDE!

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200 Thomas ParkwayJefferson, GA 30549Size: 458,640 SF on 53 Acres

Available SF: 458,640 SF

Sale / Lease: Withheld

Ceiling: 36’ clear

Year Built: 2016

Northeast

1665 Broadmoor BlvdBuford, GA 30518Size: 492,048 SF

Available SF: 492,048 SF

Sale / Lease: Withheld

Ceiling: 36’ clear

Year Built: 2017

2780 Horizon Ridge CtSuwanee, GA 30024Size: 222,643 SF on 13.27 Acres

Available SF: 222,643 SF

Sale / Lease: $3.70 PSF NNN

Ceiling: 28’ clear

Year Built: 1997

2510 Mill Center PkwyBuford, GA 30518Size: 870,480 SF on 49.96 Acres

Available SF: 301,320 SF

Sale / Lease: $3.50 PSF NNN

Ceiling: 32’ clear

Year Built: 2006

0 Possum Creek RdJefferson, GA 30549Size: 250,569 SF on 52.93 Acres

Available SF: 250,569 SF

Sale / Lease: $4.10 PSF NNN

Ceiling: 32’ clear

Year Built: 2016

596 Bonnie Valentine WayPendergrass, GA 20567Size: 848,525 SF on 60.86 Acres

Available SF: 371,525 SF

Sale / Lease: $3.25 PSF

Ceiling: 32’ clear

Year Built: 2006

235 Hog Mountain RoadJefferson, GA 30549Size: 459,134 SF on 37.66 Acres

Available SF: 459,134 SF

Sale / Lease: $3.25 PSF

Ceiling: 32’ clear

Year Built: 2007

350 Logistics Center PkyJefferson, GA 30549Size: 839,712 SF on 60.20 Acres

Available SF: 216,384 SF

Sale / Lease: Withheld

Ceiling: 36’ clear

Year Built: 2015

350 Raco ParkwayPendergrass, GA 30567Size: 1,004,400 SF on 61 Acres

Available SF: 486,000 SF

Sale / Lease: $3.25 PSF

Ceiling: 32’ clear

Year Built: 2008

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Atlanta Industrial Development

4245 International BlvdNorcross, GA 30093Size: 249,200 SF on 10.5 Acres

Available SF: 249,200 SF

Sale / Lease: Withheld

Ceiling: 23’ clear

Year Built: 1985

4600 Northeast ExpresswayDoraville, GA, 30340Size: 225,200 SF on 9.6 Acres

Available SF: 225,200 SF

Sale / Lease: $8,107,200 SF/ Withheld

Ceiling: 16.5’-28 clear

Year Built: 1965

4971 Golden PkwyBuford, GA 30518Size: 300,000 SF on 16.70 Acres

Available SF: 300,000 SF

Sale / Lease: $3.75 PSF

Ceiling: 32’ clear

Year Built: 2016

Northeast

54%

32

46%

40% 2.83M

16 7.54M

1.87M 4.56M

of current development is Speculative

of current development is Build-to-Suit

total projects under construction totaling 16.9 M SF

of product ispreleased or BTS

2016 first generation space not leased (SF)

2017 first generation delivered space not leased (SF)

total first generation delivered space not leased (SF)

SF absorption of new spacein 2017

Buildings delivered YTD 2017, totaling 7.5 Million SF

2017 Completed DevelopmentCurrent Development

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Percentage of Prospects by Size & RangeActive Industries by Deals in the Market

Active Industries by SF in the MarketSquare Footage Activity in the Submarkets

The Real Estate Cycle

Peaking Market• Vacancy below stable levels and

approaching cyclical low• Rental rates hover around or above

replacement costs and continue to rise

• Increase in new speculative construction

Rising Market• Vacancy decreases from high to

below stable levels• Rental rates rise form cyclical lows

toward replacement costs• Demand increase and supply is

limited

Falling Market• Vacancy increases to above stable

levels• Rental rates fall from cyclical highs

rapidly• Demand decreases while new

construction continues to deliver • No new construction starts

Bottoming Market• Vacancy rises above stable levels

and approaches cyclical high• Rental rates fall below replacement

costs to cyclical lows • Supply ahead of demand and new

13%

63%

25%

100%

E-Fulfillment

Manufacturing

Retailers/Wholesalers

Transportation/Logistics

less than 2%: Agri/Mining/Utilities, Business Services, Communications, Constructions, Government, Medical, Personal Services

Market Activity

4%

20%

12%

24%

40%

Percentage of Prospects by Size Range

50K or Less

Between 50K-100K

Between 100K-250K

Between 250K-500K

Greater than 500K

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US

Mar

ket Import

VolumesIn May 2017, the U.S. imported $194.7 billion of cargo, decreasing 0.31% from April. The May imports of capital goods ($52.8 billion) were the highest on record. (Source: US Census)

Expert Volumes

In May 2017, the U.S. exported $127.2 billion of cargo, increasing 0.24% from April. The May exports to South Korea ($4.5 billion) were the highest on record. (Source: US Census)

Rai

l Railroad News Clips

The Building Rail Access for Customers and the Economy (BRACE) Act, introduced in March of this year, has achieved majority support in Congress. The BRACE Act includes language to make the Railroad Track Maintenance Tax Credit, also known as the 45G Tax Credit, permanent (the tax credit expired December 31, 2016). Under the terms of the credit a short line railroad must invest one dollar for every 50 cents in credit up to a credit cap equivalent to $3,500 per mile of track. Since it was implemented in 2005, the tax credit has enabled short line and regional railroads to invest $4 billion in infrastructure, assisting the nation’s 603 short line railroads in upgrading track and bridges. (Source: Railway Age)

Truc

king

Trucking Volume

The ATA’s seasonally adjusted For-Hire Truck Tonnage Index was 138.5 in June 2017, a decrease of 4.3% from the previous month and an increase of 1.32% from June 2016. According to the ATA, despite the month-over-month decline, they still expect moderate growth going forward as key sectors of the economy continue to improve slowly. (Source: American Trucking Associations | Trucking.org)

Truckload Freight

The spot market for truckload-freight available for pick-up in June increased 2,200 basis points compared to the previous month, and was 9,000 basis points higher year-over-year. Truck capacity decreased 1,100 basis points for the month, and decreased 80 basis points year-over-year. (Source: DAT Trendlines | www.dat.com)

US Truck & Trailer Orders

Preliminary data for heavy-duty Class 8 trucks net orders in North America were 17,600 units in June 2017, an increase of 7.8% from May and 38% higher year-over-year. According to FTR, it is assumed that most of the June orders are for Q4 delivery enabling OEMs to maintain their current build rates throughout the year. The Class 8 market continues to perform at a steady pace and is consistent with summer’s seasonal trends. Final June 2017 net trailer orders came in at 18,900 units, up 13.8% from May and up 58.8% from June 2016. According to FTR, June trailer orders were above expectations, with most segments moderately exceeding their May totals. Backlogs are decreasing, but that’s due to the high build rates rather than lower orders. Production was the highest since July 2015. (Source: FTR Transportation Intelligence | ftrintel.com)

Trucking News Clips

Earlier this month a bill was filed in the House of Representatives that would delay the compliance date of the federal government’s electronic logging device (ELD) mandate by two years. The change, if enacted, would give carriers until December 2019 to switch from paper logs to an electronic logging device. The introduction of the bill came a day after a House panel recommended that the Department of Transportation study whether a “full or targeted delay” of the mandate is needed. Both developments signal that efforts to engage Congress on the issue have gained traction. In a report, members of the House cited the burden placed on smaller carriers, like owner-operators, and questions surrounding enforcement and “technological concerns” as reasons to delay the ELD mandate. (Source: TruckersNews.com)

Air

Frei

ght Air Cargo

TrafficGlobal air freight traffic in May 2017 increased by 12.7% year-over-year. This pace is more than three times the five-year average growth rate (3.8%) and the strongest start to a year since 2010. (Source: IATA.org)

Atlanta Air Cargo Traffic

In May 2017, Hartsfield-Jackson Atlanta International Airport transported 5455,915 metric tons of cargo, a 3.12% increase from the previous month and a 7.58% increase year-over-year. (Source: HJAIA)

Oce

anFr

eigh

t

Port of Savannah

The Port of Savannah moved 337,710 TEUs in June 2017, a 3.54% decrease from the previous month, but 17.11% higher year-over-year, and the busiest June in GPA’s history. June capped off a record fiscal year for the Georgia Port Authority. In FY17, the GPA moved an all-time high 3.85 million TEUs, an increase of 6.7% over the previous year. In the last half of FY17 alone, the Port of Savannah handled 1.99 million TEUs, for a growth rate of 11.6% over the same period in FY2016. Also during FY17, the GPA moved 33.4 million tons of cargo across all terminals, setting another all-time high record and an increase of 8.3% over FY2016. (Source: GPA)

Port of Brunswick

At Colonel’s Island, 200+ acres are in the design or development stages, bringing auto processing space to 547 acres. Twenty-four of 50 acres purchased by Mercedes Benz were paved in May. Another 168 acres will be completed between mid-July and November, of which 124 acres have been leased. Previously, 20 acres for vehicle processing were completed and leased to Wallenius Wilhelmsen Logistics. The long-term plan is to add another 510 acres on the island’s south side to support auto processing, doubling the capacity for cars and heavy machinery in Brunswick. (Source: GPA)

War

ehou

se

Dis

trib

utio

n Industrial Vacancy

The nationwide vacancy rate was 5.4% at the end of the first quarter in 2017, the lowest level in nearly 30 years. It is down from 5.7% in Q4 2016 and 6.1% in Q1 2016. The industrial vacancy rate in Savannah, GA was 3.0% in Q1 of 2017, unchanged compared to Q4 2016. (Source: NGKF, Cushman & Wakefield)

Warehouse Rent Rates

In Q1 2017, the average asking rent in the U.S. was $6.12/SF, up 1.9% from Q4+ 7.1% from Q1 2016, thestrongest year-over-year increase in the current cycle. Average asking rent in Atlanta was $4.38/SF.(Source: NGKF)

Logistics Market Snapshot June 2017

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Industrial Buildings Under Construction

Project Location Building SF Tenant Delivery

1 King Mill Rd 1,555,200 SF Lindt Q3 - 18

2 Charlie Brown 1,200,000 SF UPS Q1 - 18

3 120 Jackson Rd 1,200,000 SF Dollar General Q3 - 17

4 Hwy 155 S - Home Depot Fullfilment Ctr 1,000,000 SF Home Depot Q1 - 17

5 Thomas Pky - Kubota Industrial Equipment 617,865 SF Kubota Q3 - 17

Largest Build to Suit Projects Under Constructionas of

Project Location Building SF Delivery

6 500 Palmetto Logistics Pky 1,054,500 Q4 - 17

7 Valentine Industrial Pky 1,021,000 Q3 - 18

8 Anvil Block Rd - Gillem Logistics Ctr, Bldg 150 1,017,000 Q1 - 18

9 700 Price Rd - Locust Grove Distribution Ctr 1,000,993 Q1 - 18

10 8500 Tatum Rd - Sugart Farms Phase II 982,777 -

11 4388 Lunsford Dr - Clayton Commerce Ctr 797,580 Q4 - 17

12 150 Distribution Dr - King Mill Distribution Park Phase II 759,495 Q4 - 17

13 Preston Blvd - I-20 West Distribution Ctr 498,487 Q2 - 18

14 6180 Buffington Rd - Flat Shoals 85 Distribution Ctr 362,880 Q3 - 17

15 4505 North Commerce Dr - Camp Creek 4505 336,960 Q4 - 17

16 3495 Hwy 92 - Cherokee Business Ctr 312,500 Q1 - 18

17 7815 Third Flag Pkwy - Cobb West Business Park 281,057 Q3 - 17

18 3750 Blue Ridge Dr - Blue Ridge Distribution Ctr 261,106 Q2 - 18

19 Buford Mill Dr - Buford Mill Distribution Ctr, Bldg 100 243,000 Q3 - 17

20 1940 Twin Creeks Pky - Twin Creeks Business Ctr, Bldg 1940 240,000 Q4 - 17

21 1990 Twin Creeks Pky - Twin Creeks Business Ctr, Bldg 1990 240,000 Q4 - 17

22 Southmeadow East Pky 230,000 Q2 - 18

23 1451 North River Rd - Riverside West 215,540 Q3 - 17

Speculative Buildings Under Construction Over 200,000 SF - Metro Atlantaas of

Q2 2017

Q2 2017

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Industrial Submarkets Map

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Industrial Submarkets TotalInventory

VacancyTotal SF

VacancyQ2 ‘17

Net AbsorptionYTD Total

UnderConstruction

Building YTDDeliveries

Asking Rent

Northwest 68,390,789 4,198,414 6.1% 1,155,185 566,500 944,800 $5.35

North Central 26,846,209 1,463,549 5.5% 342,550 98,297 48,981 $8.35

Northeast 158,491,493 10,718,914 6.8% 811,791 2,927,651 3,161,375 $5.40

St. Mountain / Snapfinger 69,635,885 3,909,485 5.6% -796,177 480,000 - $4.49

South Atlanta 171,282,077 14,447,292 8.4% 7,825,043 9,932,214 2,464,998 $3.41

I-20 West / Fulton Ind 98,592,112 6,082,107 6.2% 2,977,458 2,958,596 1,872,173 $3.41

Chattahoochee / Central Atl 33,216,054 1,550,090 4.7% 441,807 - 55,801 $7.47

Total 626,454,619 42,369,851 6.8% 12,757,657 16,963,258 8,548,128 $4.49

Industrial Submarket Data Comparison

Total Submarkets TotalInventory

VacancyTotal SF

VacancyQ2 ‘17

Net AbsorptionYTD Total

UnderConstruction

Building YTDDeliveries

Asking Rent

Warehouse 474,631,625 31,678,873 6.7% 9,595,979 6,454,852 1,863,679 $3.99

Distribution 103,350,746 6,210,221 6.0% 2,341,345 10,508,406 5,876,094 -

Flex 48,472,248 4,480,757 9.2% 820,333 - 808,355 $9.30

Total 626,454,619 42,369,851 6.8% 12,757,657 16,963,258 8,548,128 $4.49

CAP RATEpercentage, 2007-YTD 2017

BUYER TYPEQ2 2017 sales

61%

10.0%2.0%

Private User REIT/Public

27%

Institutional

7.45%

8.28%

10.14%

8.39%

8.56%

8.46%

8.80%8.28%

7.93% 8.03%

8.18%

6%

7%

8%

9%

10%

11%

12%

2007 2009 2011 2013 2015 YTD2017

ABSORPTIONin SF, 2007-YTD 2017

VACANCYpercentage, 2007-YTD 2017

11.20M

‐6.16M ‐6.20M‐2.40M

8.42M

4.72M

12.08M

18.76M

12.97M13.78M12.76M

‐10.00

‐5.00

0.00

5.00

10.00

15.00

20.00

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017YTD

10.6% 

12.9% 

13.9% 14.7% 

13.5% 13.0% 

11.4% 

8.8% 

7.2% 7.6% 

6%

8%

10%

12%

14%

2007 2009 2011 2013 2015  YTD 2017

6.8%

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lee-associates.com/atlanta 14

Lee & Associates - Big Box Industrial Report

NATIONWIDE LOCATIONS

agentsand growingnationwide

900transaction volume

2016

$10 billionincreasein transaction

volume over 5 years

104%

At Lee & Associates our reach is national but our expertise is local market implementation. This translates into seamless, consistent execution and value driven market-to-market services.

Our agents understand real estate and accountability. They provide an integrated approach to leasing, operational efficiencies, capital markets, property management, valuation, disposition, development, research and consulting.

We are creative strategists who provide value and custom solutions, enabling our clients to make profitable decisions.

Eastern Pennsylvania, PA · Cleveland, OH · Columbus, OH · Houston, TX · Denver, CO · Cleveland, OH · Long Island-Queens, NY · Chesapeake Region , MD ·

Charleston, SC · Edison, NJ · Orlando, FL · Fort Myers, FL · Kansas City, KS · Manhattan, NY · Greenville, SC · Atlanta, GA · Greenwood, IN ·

Indianapolis, IN · Long Beach, CA · Elmwood, NJ · Boise, ID · Palm Desert, CA · Santa Barbara, CA · Antelope Valley, CA · Dallas, TX · Madison, WI ·

Oakland, CA · Reno, NV · San Diego, CA · Ventura, CA · San Luis Obispo, CA · Southfield, MI · Santa Maria, CA · Calabasas, CA · St. Louis, MO ·

Chicago, IL · Victorville, CA · Temecula Valley, CA · Central LA, CA · Sherman Oaks, CA · West LA, CA · Pleasanton, CA · Stockton, CA ·

Phoenix, AZ · Carlsbad, CA · Industry, CA · Los Angeles, CA · Riverside, CA · Ontario, CA · Newport Beach, CA · Orange, CA · Irvine, CA

LOCAL EXPERTISE. NATIONAL REACH. WORLD CLASS.

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About Lee & AssociatesIn 2010, our Atlanta office joined Lee & Associates, the largest broker-owned commercial real estate sales organizations in the U.S. As a local office of this highly respected national firm, the Atlanta team capitalizes on Lee’s stellar reputation to continue its paradigm of establishing long-term, client-driven relationships to develop customized solutions for every client’s specific real estate requirement.

3500 Lenox Road Suite 200

Atlanta, GA 30326404.442.2810

SUPPLY CHAIN AND LOGISTICS GROUP (SOUTHEAST U.S.)

LEE & ASSOCIATES - SCLG MEMBERS OF THE FOLLOWING

Kurt T. Unger, CCIM, SIORExecutive VP / PrincipalLee Atlanta- Top BrokerOffice: [email protected]

Rick Tumlin, CCIM, SIORExecutive VP / PrincipalLee Atlanta- #2 BrokerOffice: [email protected]

Tom Bryant Director Office: 404.442.2814 [email protected]

PropertyManagement

LandlordRepresentation

PropertyManagement

TenantRepresentation

Land Aquisition & Disposition

InvestmentAdvisory

Advisory &Research

CapitalMarkets

Warehousing Education & Research Council

Atlanta Air Cargo Association

Society of Industrial & Office Realtors

Lee & Associates® Supply Chain & Logistics Group

National Association of Realtors (NAR)

Council of Supply Chain Management Professionals

Industrial Asset Management Council

Certified Commercial Board of Realtors

Atlanta Commercial Board of Realtors