Q1 2022 Northwest Atlanta Industrial Submarket Report

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ATLANTA INDUSTRIAL REPORT

Northwest Atlanta Industrial Submarket

Q1 2022

Absorption Positive, Construction Booming in Northwest Atlanta

ABSORPTION, DELIVERIES AND VACANCY RATE

Northwest Atlanta Industrial saw negative absorption of (187,000) square feet in Q1 of 2022 on the heels of a record-setting Q4, where the submarket experienced positive absorption of over 1.8 million square feet, an all-time record for one quarter. While Northwest Atlanta Industrial’s vacancy rate rose 240 basis points (2.4%) in Q1, there is little cause for alarm: the rise in vacancy and negative absorption in Q1 was due to a whopping 1,904,493 square feet of deliveries, most of it spec product. Development has not lost any steam either, with 5 new buildings breaking ground in Q1, bringing the total square footage under construction to nearly 9 million.

6,000,000

8.0%

5,000,000

7.0% 6.0%

4,000,000

5.0% 3,000,000 4.0% 2,000,000 3.0% 1,000,000

2.0%

0

1.0%

‐1,000,000

2017

2018

2019

Absorption

2020

Deliveries

2021

2022 YTD

0.0%

Source: CoStar

Vacancy Rate

NORTHWEST ATL IND

Inventory SF

Vac Rate Q1 ‘22

Vac Rate Q4 ‘21

Net Absorp Q1 ‘22

Net Absorp Last 12 Mos

Deliveries Last 12 Mos

SF Under Construction

Avg Rent (NNN)

<250,000 SF

55,952,911

3.7%

3.0%

(187,007)

1,333,268

1,042,471

515,705

$6.20

“BIG BOX” >250,000 SF

26,364,777

7.9%

1.5%

-

2,234,764

3,869,778

8,464,904

$4.92

Total

82,317,688

5.0%

2.6%

(187,007)

3,568,032

4,912,249

8,980,609

$5.73

NORTHWEST ATLANTA INDUSTRIAL RECENT LEASES Tenant

Property

Owner/Developer

Sign Date

SF

Lease Type

Amazon

1250 Cassville White Rd - Building B

IDI Logistics

Nov 2021

1,108,990

New Lease

400 International Pky

Ashley Capital

Mar 2022

498,144

New Lease

2750 Barrett Lakes Blvd

Prologis

Mar 2022

368,931

New Lease

Duluth Trading Company Reynolds Consumer Products

NORTHWEST ATLANTA INDUSTRIAL RECENT INVESTMENT SALES Property

Price

SF

$/SF

Date

Buyer

Bartow Commerce Center 1 & 2

$85,270,000

724,000

$117.78

12/28/2021

LXP Industrial Trust

95 International Pky - Bldg 100

$26,730,000

225,211

$118.69

12/28/2021

LXP Industrial Trust

1000 Evenflo Dr

$25,750,000

371,338

$69.34

12/8/2021

Lightstone Group

Lincoln Property Company Atlanta tracks industrial buildings that are 25,000 sf or greater.

Lincoln Southeast Industrial Available Listings

Forsyth 400 Commerce Center Forsyth 400 Commerce Center Bldg 100 Bldg 200 2705-2715 Ronald Reagan Blvd, 2705-2715 Ronald Reagan Blvd, Cumming, GA Cumming, GA

Airport West 500

Joe Frank Harris Pkwy SE

Conyers Logistics Center

3625 Naturally Fresh Blvd, Atlanta, GA

Joe Frank Harris Pkwy SE, Emerson, GA

2107 Eastview Pky, Conyers GA

141,986 SF

110,197 SF

218,370 SF

306,376 SF

201,600 SF

Delivering Q3 2022

Delivering Q3 2022

Delivering Q3 2022

Delivering Q2 2023

Existing

Need More Market Intel?

Spencer Papciak Research Manager 678.498.7676 spapciak@lpc.com

Turner Fortin Leasing Associate 404.863.9931 tfortin@lpc.com

Lincoln Property Company Southeast 3405 Piedmont Road, Suite 450 Atlanta, GA 30305 404 266 7600

The information contained herein has been obtained from the owner of the property or from a source deemed reliable. While Lincoln Property Company has no reason to doubt its accuracy, we do not guarantee it.

lpcsoutheast.com


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