GREATER ATLANTA
BIG BOX / BULK DISTRIBUTION
MARKET REPORT
Fall 2017
Preview
Fall 2017 Preview
1
Report Analytics
The 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
Southeld 5165 Kennedy Rd South Atlanta All South Warehouse 297,000 Renewal
Snapshot Data
Based on availabilities contained in this report, as of 08/08/17
Contiguous 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 Ofce Build-Out
• Available in 90 Days or Less
Bulk Distribution Centers Dened 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
lee-associates.com/atlanta
2
Lee & Associates - Big Box Industrial Report
Source: Bureau of Labor Statistics, Georgia State University Economic Forecasting Center, Bureau of Economic Analysis
6.8%
Vacancy
7.5%
16,963,258 SF
Under Construction
6,127,566 SF
Net Absorption
6,704,331 SF
4,686,730 SF
Leasing Activity
$4.49 SF
Average Asking Rent (per year)
$343 M
154 Sales Transactions
6,960,252 SF
New Supply Delivered
$53.00 SF
Average 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
Fall 2017 Preview
3
2160 Anvil Block Road
Ellenwood, GA 30294
Size: 848,421 SF
Available SF: 441,796 SF
Sale / Lease: $3.35 PSF
Ceiling: 36’ clear
Year Built: 2016
4575 Lake Mirror Place
Forest Park, GA 30297
Size: 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 Ave
East Point, GA 30344
Size: 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 Dr
Fairburn, GA 30213
Size: 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 Road
Morrow, GA 30260
Size: 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 Hwy
Forest Park, GA 30297
Size: 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 & Stonewall
Atlanta, GA 30349
Size: 1,039,570 SF on 325 Acres
Available SF: 1,039,570 SF
Sale / Lease: Withheld
Ceiling: 40’ clear
Year Built: 2017
4071 Southmeadow Pky
Atlanta, GA 30349
Size: 209,918 SF on 17.83 Acres
Available SF: 98,483 SF
Sale / Lease: Witheld
Ceiling: 28’ clear
Year Built: 1991
4286 E Southmeadow Pky
Atlanta, GA 30349
Size: 400,125 SF on 78.08 Acres
Available SF: 400,125 SF
Sale / Lease: Withheld
Ceiling: 36’ clear
Year Built: 2017
South Atlanta
Lee & Associates - Big Box Industrial Report
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4
2750 Sullivan Road
College Park, GA 30337
Size: 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 Pkwy
Stockbridge, GA 30281
Size: 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. Court
McDonough, GA 30253
Size: 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 30253
Size: 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 Pkwy
Stockbridge, GA 30281
Size: 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 Ct
McDonough, GA 30253
Size: 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 30253
Size: 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 Blvd
Ellenwood, GA 30294
Size: 451,200 SF on 18.69 Acres
Available SF: 451,200 SF
Sale / Lease: Withheld
Ceiling: 32’ clear
Year Built: 2004
130 Greenwood Ind. Pkwy
McDonough, GA 30253
Size: 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
Fall 2017 Preview
5
700 Hudson Road
Grifn, GA 30224
Size: 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. Pkwy
McDonough, GA 30253
Size: 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-Bldg600
McDonough, GA 30253
Size: 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 30253
Size: 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 Road
Cartersville, GA 30121
Size: 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 30184
Size: 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 SE
Atlanta, GA 30316
Size: 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 Road
Tucker, GA 30084
Size: 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 Road
Covington, GA 30014
Size: 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
Lee & Associates - Big Box Industrial Report
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6
875 Maxham Road
Lithia Springs, GA 30122
Size: 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 30122
Size: 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 30168
Size: 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 30168
Size: 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 30336
Size: 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 Lane
Atlanta, GA 30336
Size: 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 Road
Powder Springs, GA 30127
Size: 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 OF
EXPERIENCE ON YOUR SIDE!
Fall 2017 Preview
7
200 Thomas Parkway
Jefferson, GA 30549
Size: 458,640 SF on 53 Acres
Available SF: 458,640 SF
Sale / Lease: Withheld
Ceiling: 36’ clear
Year Built: 2016
Northeast
1665 Broadmoor Blvd
Buford, GA 30518
Size: 492,048 SF
Available SF: 492,048 SF
Sale / Lease: Withheld
Ceiling: 36’ clear
Year Built: 2017
2780 Horizon Ridge Ct
Suwanee, GA 30024
Size: 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 Pkwy
Buford, GA 30518
Size: 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 Rd
Jefferson, GA 30549
Size: 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 Way
Pendergrass, GA 20567
Size: 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 Road
Jefferson, GA 30549
Size: 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 Pky
Jefferson, GA 30549
Size: 839,712 SF on 60.20 Acres
Available SF: 216,384 SF
Sale / Lease: Withheld
Ceiling: 36’ clear
Year Built: 2015
350 Raco Parkway
Pendergrass, GA 30567
Size: 1,004,400 SF on 61 Acres
Available SF: 486,000 SF
Sale / Lease: $3.25 PSF
Ceiling: 32’ clear
Year Built: 2008
Lee & Associates - Big Box Industrial Report
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8
Atlanta Industrial Development
4245 International Blvd
Norcross, GA 30093
Size: 249,200 SF on 10.5 Acres
Available SF: 249,200 SF
Sale / Lease: Withheld
Ceiling: 23’ clear
Year Built: 1985
4600 Northeast Expressway
Doraville, GA, 30340
Size: 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 Pkwy
Buford, GA 30518
Size: 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 is
preleased or BTS
2016 rst generation
space not leased (SF)
2017 rst generation
delivered space not
leased (SF)
total rst generation
delivered space not
leased (SF)
SF absorption
of new space
in 2017
Buildings delivered
YTD 2017, totaling
7.5 Million SF
2017 Completed DevelopmentCurrent Development
Fall 2017 Preview
9
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
Lee & Associates - Big Box Industrial Report
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10
US
Market
Import
Volumes
In 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)
Rail
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)
Trucking
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 led 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
Freight
Air Cargo
Trafc
Global air freight trafc in May 2017 increased by 12.7% year-over-year. This pace is more than three times the ve-year
average growth rate (3.8%) and the strongest start to a year since 2010. (Source: IATA.org)
Atlanta Air
Cargo Trafc
In May 2017, Hartseld-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)
Ocean
Freight
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 scal 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)
Warehouse
Distribution
Industrial
Vacancy
The nationwide vacancy rate was 5.4% at the end of the rst 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 & Wakeeld)
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, the
strongest year-over-year increase in the current cycle. Average asking rent in Atlanta was $4.38/SF.
(Source: NGKF)
Logistics Market Snapshot June 2017
Fall 2017 Preview
11
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 Fulllment 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 Construction
as 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 Bufngton 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 Atlanta
as of
Q2 2017
Q2 2017
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12
Industrial Submarkets Map
Fall 2017 Preview
13
Industrial Submarkets
Total
Inventory
Vacancy
Total SF
Vacancy
Q2 ‘17
Net Absorption
YTD Total
Under
Construction
Building YTD
Deliveries
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 / Snapnger 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
Total
Inventory
Vacancy
Total SF
Vacancy
Q2 ‘17
Net Absorption
YTD Total
Under
Construction
Building YTD
Deliveries
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 RATE
percentage, 2007-YTD 2017
BUYER TYPE
Q2 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 YTD
2017
ABSORPTION
in SF, 2007-YTD 2017
VACANCY
percentage, 2007-YTD 2017
11.20M
‐6.16M
‐6.20M
‐2.40M
8.42M
4.72M
12.08M
18.76M
12.97M
13.78M
12.76M
‐10.00
‐5.00
0.00
5.00
10.00
15.00
20.00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
YTD
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 YTD2017
6.8%
lee-associates.com/atlanta
14
Lee & Associates - Big Box Industrial Report
NATIONWIDE LOCATIONS
agents
and growing
nationwide
900
transaction volume
2016
$10 billion
increase
in 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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Atlanta on Social Media
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About Lee & Associates
In 2010, our Atlanta ofce joined Lee & Associates, the largest broker-owned commercial real estate
sales organizations in the U.S. As a local ofce of this highly respected national rm, 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 specic real estate requirement.
3500 Lenox Road
Suite 200
Atlanta, GA 30326
404.442.2810
SUPPLY CHAIN AND LOGISTICS GROUP (SOUTHEAST U.S.)
LEE & ASSOCIATES - SCLG MEMBERS OF THE FOLLOWING
Kurt T. Unger, CCIM, SIOR
Executive VP / Principal
Lee Atlanta- Top Broker
Ofce: 404.442.2823
Rick Tumlin, CCIM, SIOR
Executive VP / Principal
Lee Atlanta- #2 Broker
Ofce: 404.442.2816
Tom Bryant
Director
Ofce: 404.442.2814
Property
Management
Landlord
Representation
Property
Management
Tenant
Representation
Land Aquisition
& Disposition
Investment
Advisory
Advisory &
Research
Capital
Markets
Warehousing
Education &
Research Council
Atlanta Air Cargo
Association
Society of
Industrial & Ofce
Realtors
Lee & Associates®
Supply Chain &
Logistics Group
National
Association of
Realtors (NAR)
Council of Supply
Chain Management
Professionals
Industrial Asset
Management
Council
Certied
Commercial Board
of Realtors
Atlanta Commercial
Board of Realtors
