Metro Atlanta Industrial
Q2 2022
Atlanta Industrial Market Sees Solid Leasing Momentum, Continued Construction Boom
ABSORPTION, DELIVERIES AND VACANCY RATE 50,000,000
The Atlanta industrial market is off to a strong start in the first half of 2022, with positive absorption of 5,089,414 square feet, bringing the year-to-date total to 9,753,209 square feet. This is in-line with the historical absorption figure for a healthy Atlanta industrial market, albeit now with a much lower vacancy rate, which currently sits at 3.6%. This represents the second-lowest vacancy rate for the Atlanta industrial market in the past 20 years. Average rental rates rose to $5.37, an 11.9% rise in the past 12 months.
45,000,000
3.6%
vacancy rate
5,414,476
7%
40,000,000 6% 35,000,000 5%
30,000,000 25,000,000
4%
20,000,000
Atlanta’s industrial construction pipeline has continued to set new market records, with 145 buildings totaling over 51 million square feet under construction as of Q2. Unsurprisingly, this is the highest amount of square footage under construction that the Atlanta market has ever seen. 12 buildings totaling 3,750,950 square feet delivered in Q2, while a further 33 broke ground. The eventual deliveries of these buildings, which has been slowed slightly by supply chain issues and rising construction costs, should eventually relieve some of the tight vacancy rates seen across the market.
Market Snapshot
8%
3%
15,000,000 2% 10,000,000 1%
5,000,000 0
2017
2018
Absorption
2020
Deliveries
2021
2022 YTD
0%
Vacancy Rate Source: CoStar
9,753,209
net absorp Q2
2019
net absorp YTD
51,660,838 under constr sf
Source: CoStar, LPC Research
LEASING ACTIVITY
Leasing activity has remained strong in Atlanta despite tight vacancy thanks largely to the delivery of new supply. With 13.9 million square feet of signed deals in Q2 of 2022, there have been over 58 million square feet of industrial leases signed in Atlanta over the past 12 months. New builds have continued to be a key leasing driver, with 31 buildings totaling over 12 million square feet delivering so far this year. Currently about 26.2% of the record 51.6 million square feet under construction are leased, a positive indicator that has resulted in an optimistic outlook (and more groundbreakings) from developers. TOP LEASES Q2 2022
Tenant DG Distribution Spreetail Fulton County Bergen Logistics
Property
Submarket
Owner/Developer
SF
Lease Type
1057 Coweta Industrial Pky
Airport/I-85 South Ind
Crow Holdings
1,001,000
New Lease
200 Metcalf Rd
Airport/I-85 South Ind
TA Realty
909,509
New Lease
5600 Campbellton Fairburn Rd
Airport/I-85 South Ind
Panattoni
600,000
New Lease
7575 Cobb International Blvd
Northwest Atlanta Ind
Oakmont Industrial
484,323
New Lease
545 Lake Careci Rd
I-20 West/Fulton Ind
Oakmont Industrial
468,827
New Lease
4785 Fulton Industrial Blvd
I-20 West/Fulton Ind
EverWest
342,400
New Lease
ASOS Waste Pro USA
INVESTMENT SALES The Atlanta industrial market saw over $1.2 billion in sales volume in Q2, with the average transaction price per square foot hitting $102.70. This marks four consecutive quarters with over $1 billion in sales, including the largest single-quarter total in Atlanta industrial’s history, when Q4 of 2021 saw over $3.2 billion in sales volume. Atlanta has remained attractive to national institutional investors, with 80% of the market’s investment coming from firms outside the state of Georgia. RECENT INVESTMENT SALES
Property 200 Thomas Pky
Submarket
Price
SF
$/SF
Date
Buyer
Northeast
$54,050,000
458,640
$118
4/13/2022
JLL Income Property Trust
I-20 West/Fulton
$38,850,000
254,100
$153
4/13/2022
Link Logistics
2800 Vista Ridge Dr
Northeast
$37,300,000
252,092
$148
4/4/2022
KKR
4620 Thompson Mill Rd
Northeast
$21,150,000
130,120
$162
4/28/2022
Ares Management
7450 Factory Shoals Rd
lpcsoutheast.com 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.
METRO ATLANTA INDUSTRIAL MARKET Q2 2022
MARKET STATISTICS Total Inventory SF
Vacancy Rate Q2 ‘22
Vacancy Rate Q1 ‘22
Net Absorp Q2 ‘22
Net Absorp 2022 YTD
Deliveries Q2 ‘22
Under Constr
Avg Rent (NNN)
141,659,895
4.6%
4.4%
(162,914)
1,340,050
75,000
8,936,135
$5.39
21,167,779
5.7%
5.6%
(33,644)
(203,958)
-
-
$10.79
I-75 SOUTH IND
69,617,525
3.5%
5.5%
1,428,003
1,019,173
-
6,018,398
$4.61
I-20 WEST/FULTON IND
111,173,797
2.0%
1.9%
398,561
774,497
559,122
6,359,434
$5.72
NORTHEAST ATLANTA IND
196,645,043
2.8%
3.7%
2,169,800
4,550,566
1,892,736
16,607,242
$5.25
NORTHWEST ATLANTA IND
84,102,668
3.0%
4.3%
1,522,839
1,335,832
1,526,492
11,301,012
$5.80
NORTH CENTRAL ATLANTA IND
19,429,755
2.5%
2.3%
(29,865)
377,337
-
656,365
$9.77
SNAPFINGER/I-20 EAST IND
45,451,454
4.1%
3.6%
(203,348)
155,833
-
1,686,252
$5.70
STONE MOUNTAIN IND
23,854,780
1.3%
2.6%
325,044
403,879
-
96,000
$6.08
Total Market
713,102,696
3.6%
3.8%
5,414,476
9,753,209
4,053,350
51,660,838
$5.37
563,492,844
3.8%
4.0%
4,692,040
7,639,846
3,553,350
49,424,800
$5.41
81,763,218
3.7%
3.5%
662,021
1,424,488
500,000
1,430,000
$4.09
SHALLOW BAY
67,846,634
2.2%
2.3%
60,415
688,875
-
806,038
$5.61
Total Market
713,102,696
3.6%
3.8%
5,414,476
9,753,209
4,053,350
51,660,838
$5.37
BY SUBMARKET AIRPORT/I-85 SOUTH IND
CENTRAL ATL/CHATTAHOOCHE IND
BY PROPERTY TYPE WAREHOUSE & DISTRIBUTION
MANUFACTURING
Source: CoStar, LPC Research
Lincoln Property Company Atlanta tracks industrial buildings that are 25,000 sf or greater.
Need More Market Intel?
Spencer Papciak Research Manager 678.498.7676 spapciak@lpc.com
Turner Fortin Vice President 404.863.9931 tfortin@lpc.com
Lincoln Property Company Southeast 3405 Piedmont Road, Suite 450 Atlanta, GA 30305 404 266 7600
About LPC SE: Lincoln Property Southeast is a commercial real estate firm offering a comprehensive suite of value-added services for our clients. With our substantial local presence and history in the Southeast region, we are ideally situated to provide a superior service, which comes from knowing the goals and challenges faced by our clientele: tenants, investors, lenders and owners of commercial real estate. Our people and our philosophy are the key ingredients for Lincoln’s solid track record of success. 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