Q3 2011 | I-20W/FULTON INDUSTRIAL
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 17%
800,000
16%
600,000
15%
Square Feet
1,000,000
14%
400,000
13%
200,000
12%
0
(200,000)
3Q10
4Q10
1Q11
2Q11
3Q11
10% 9%
(600,000)
8% Deliveries
Vacancy Rate
15.4%
YTD Net Absorption
(524,945)
YTD Deliveries
0
Under Construction
0
11%
(400,000)
Absorption
92,043,478
Total SF
Avg. Warehouse Rate
Vacancy
$3.01 NNN
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q3 2011
UPDATE Recent Transactions in the Market
Q4 2011
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE
— —
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Hartman III
$22,000,000
525,627
$41.85
Welsh Property Trust
—
8096 E. Highway 78
$9,221,727
214,320
$43.03
Angelo, Gordon & Co.
—
1370 Discovery Industrial Ct
$6,000,000
151,800
$39.53
Welsh Property Trust
Hartman IV
$5,400,000
113,748
$47.47
Welsh Property Trust
I-20 West/ Fulton Ind
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Boxercraft
7131 Discovery Blvd.
148,300
Warehouse Lease
Best Warehouse & Trans.
6255 Fulton Industrial Blvd.
120,960
Warehouse Lease
Guest Supply
780 Douglas Hill Rd.-Bldg. 5
107,445
Warehouse Lease
TGI Tuff Glass
5550 Westpark Dr.
96,274
Warehouse Lease
•
For the third consecutive quarter, the I-20 West/Fulton Industrial submarket saw its overall vacancy increase. Another 125,000 square feet of vacant industrial space hit the submarket in third quarter.
•
I-20 West/Fulton Industrial’s year-to-date absorption is the worst in Atlanta’s industrial market. Much of the larger leasing activity is taking place in the South Atlanta submarket. In addition, leasing activity from smaller tenants is absent here as well.
•
Going forward, the submarket should see a slight drop in its vacancy in the fourth quarter. Czarnowski will move into 569,673 SF of warehouse/distribution space at Hartman V which will be the largest move-in for fourth quarter. Beyond 2011, the submarket should begin to see some pickup in activity.