ATLANTA INDUSTRIAL REPORT
Airport/I-85 South Industrial Submarket
Q2 2022
Future Bright for Airport/I-85 South as Construction, Rates Increase
ABSORPTION, DELIVERIES AND VACANCY RATE 9.0%
14,000,000
8.0%
12,000,000
Atlanta’s second-largest industrial submarket saw negative absorption of 162,914 square feet, the first negative absorption quarter for the Airport/I-85 South submarket in 7 years. This does not raise any red flags for the submarket’s future though, as this was due to a confluence of construction delays, few deliveries, and several large scheduled moveouts. With material delays causing construction timelines to lengthen, both building deliveries and tenant buildouts have been pushed back, resulting in just one 75,000 square foot building delivering in Q2. Airport/I-85 South should be back on track in Q3, led by Costco occupying 907,000 square feet at 5390 Hunter Rd, alongside multiple new buildings finishing construction.
7.0% 10,000,000 6.0% 8,000,000
5.0%
6,000,000
4.0% 3.0%
4,000,000 2.0% 2,000,000
1.0%
0
2017
2018
2019
Absorption
2020
Deliveries
2021
0.0%
2022 YTD
Source: CoStar
Vacancy Rate
Inventory SF
Vac Rate Q2 ‘22
Vac Rate Q1 ‘22
Net Absorp Q2 ‘22
Net Absorp YTD
Deliveries YTD
SF Under Construction
Avg Rent (NNN)
<250,000 SF
54,478,050
3.9%
5.0%
663,352
404,746
337,822
3,158,104
$5.84
“BIG BOX” >250,000 SF
87,284,765
5.0%
4.1%
(826,266)
935,304
2,447,184
6,449,991
$4.97
Total
141,733,345
4.6%
4.4%
(162,914)
1,340,050
2,785,006
9,608,095
$5.39
AIRPORT/I-85 S IND
AIRPORT/I-85 SOUTH INDUSTRIAL RECENT LEASES Tenant DG Distribution
Property
Owner/Developer
Sign Date
SF
Lease Type
1057 Coweta Industrial Pky
Crow Holdings
Apr 2022
1,001,000
New Lease
200 Metcalf Rd
TA Realty
Apr 2022
909,509
New Lease
7250 Graham Rd
Clarion Partners
May 2022
253,744
New Lease
Spreetail Toto
AIRPORT/I-85 SOUTH INDUSTRIAL RECENT INVESTMENT SALES Property
Price
SF
$/SF
Date
Buyer
280 Bridgeport Blvd - Bldg A
$58,500,000
562,650
$103.79
2/25/2022
Eaton Vance Real Estate
3435 Jonesboro Rd SE
$30,400,000
201,989
$150.50
3/4/2022
Fundrise
33 Dart Rd
$20,750,000
104,880
$197.85
5/25/2022
Cargill
Lincoln Property Company Atlanta tracks industrial buildings that are 25,000 sf or greater.
Lincoln Southeast Industrial Available Listings
Forsyth 400 Commerce Forsyth 400 Commerce Center Center Bldg 100 Bldg 200
Airport West 500
Joe Frank Harris Pkwy SE
2705-2715 Ronald Reagan 2705-2715 Ronald Reagan 3625 Naturally Fresh Blvd, Joe Frank Harris Pkwy SE, Blvd, Cumming, GA Blvd, Cumming, GA Atlanta, GA Emerson, GA
Conyers Logistics Center
170 Chastain Meadows
Westridge Logistics Center
2107 Eastview Pky, Conyers GA
170 Chastain Meadows Ct NW, Kennesaw GA
450 Westridge Pkwy, McDonough, GA
141,986 SF
110,197 SF
218,370 SF
306,376 SF
201,600 SF
38,400 SF
113,104 SF
Delivering Q3 2022
Delivering Q3 2022
Delivering Q3 2022
Delivering Q2 2023
Existing
Existing
Existing
Need More Market Intel?
Spencer Papciak
Turner Fortin
Lincoln Property Company Southeast
Research Manager 678.498.7676 spapciak@lpc.com
Vice President 404.863.9931 tfortin@lpc.com
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