Q2 2022 I-75 South Industrial Submarket Report

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ATLANTA INDUSTRIAL REPORT

I-75 South Industrial Submarket

Q2 2022

Strong Q2 as Construction Continues to Boom for I-75 South Industrial

ABSORPTION, DELIVERIES AND VACANCY RATE 16%

10,000,000 9,000,000

The I-75 South Industrial submarket saw positive absorption of 1,428,003 square feet in Q2, offsetting some losses from Q1. After two long-scheduled move-outs resulted in negative Q1 absorption for the submarket, I-75 South bounced back in a major way, bring the yearto-date absorption total over 1 million square feet. The submarket’s vacancy rate fell 200 basis points (2.0%) in Q2, finishing at just 3.5%. This represents the second-lowest vacancy rate for the submarket in over 20 years. New supply is on the way to alleviate this lack of supply, as there are currently 12 buildings totaling 5,840,386 square feet under construction. This represents 8.4% of I-75 South Industrial’s existing supply.

14%

8,000,000 12% 7,000,000 10%

6,000,000 5,000,000

8%

4,000,000

6%

3,000,000 4% 2,000,000 2%

1,000,000 0

2017

2018

2019

Absorption

2020

Deliveries

2021

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

16,985,908

1.8%

2.4%

103,924

110,604

-

721,788

$4.84

“BIG BOX” >250,000 SF

52,962,754

4.0%

6.5%

1,324,079

908,569

1,345,325

5,118,598

$4.50

69,586,114

3.5%

5.5%

1,428,003

1,019,173

1,345,325

5,840,386

$4.61

I-75 SOUTH IND

Total

I-75 SOUTH INDUSTRIAL RECENT LEASES Tenant

Property

Owner/Developer

Sign Date

SF

Lease Type

Home Depot

3090 Highway 42

Granite REIT

May 2022

251,299

New Lease

Clarion

1357 Highway 155 S

Clarion Partners

Aug 2022

134,383

New Lease

535 Macon St

Chris Ni

Apr 2022

83,700

New Lease

Project Verte

I-75 SOUTH INDUSTRIAL RECENT INVESTMENT SALES Property

Price

SF

$/SF

Date

Buyer

Trade Center I & 2

$72,500,000

830,369

$87.31

2/3/2022

KKR

500 Business Center Dr

$46,250,000

712,040

$64.95

3/15/2022

Growth Capital Partners

1420 Greenwood Rd

$28,000,000

296,972

$94.29

7/7/2022

United States Cold Storage

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


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