Q2 2022 North Central Atlanta Submarket Report

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ATLANTA INDUSTRIAL REPORT

North Central Atlanta Industrial Submarket

Q2 2022

Rates Rising, Vacancy Falling as North Central Atlanta Continues Momentum

ABSORPTION, DELIVERIES AND VACANCY RATE 600,000

The North Central Atlanta Industrial submarket saw slight negative absorption in Q2 of 2022 but is still positive year-to-date, boasting a microscopic vacancy rate. The submarket has seen positive absorption of 377,337 square feet year-to-date and 589,882 square feet over the past 12 months. The vacancy rate has fallen 160 basis points (1.6%) in that 12-month period, finishing Q2 at just 2.5%. Of buildings in the submarket larger than 250,000, the vacancy rate was 0%, with all the big box product in North Central Atlanta fully leased. North Central Atlanta has the smallest inventory of any Atlanta industrial submarket, with just 19.4 million square feet of existing supply. The submarket currently has 5 buildings totaling 656,365 square feet under construction, 3.4% of the existing inventory. Rates have risen sharply in the submarket over the past year, with a 37.4% increase in asking rents from one year ago. NORTH CENTRAL ATL IND <250,000 SF “BIG BOX” >250,000 SF Total

8.0% 7.0%

500,000

6.0% 400,000

5.0%

300,000

4.0% 3.0%

200,000

2.0% 100,000

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)

16,893,622

2.9%

2.7%

(29,865)

377,337

-

656,365

$9.77

2,537,401

0.0%

0.0%

-

-

-

-

-

19,431,023

2.5%

2.3%

(29,865)

377,337

-

656,365

$9.77

NORTH CENTRAL ATLANTA INDUSTRIAL RECENT LEASES Tenant

Property

Owner/Developer

Sign Date

SF

Lease Type

1775 Founders Pky

EverWest Real Estate

Jun 2022

100,125

New Lease

253 Castleberry Industrial Dr

Brama LLC

Apr 2022

40,000

Sublease

2440 Oak St

Dilip Tunki

Jun 2022

20,000

New Lease

AC White Relocations International Trade Imports Bio Gymnastics

NORTH CENTRAL ATLANTA INDUSTRIAL RECENT INVESTMENT SALES Property Northfield Business Center

Price

SF

$/SF

Date

Buyer

$24,500,000

134,292

$182.44

11/19/2021

GID Investment Advisors

1775 Founders Pky

$12,294,531

100,125

$122.79

12/20/2021

EverWest Real Estate Investors

1410 Oak Industrial Ln - Bldg 3

$6,170,000

65,000

$94.92

4/12/2022

FCS Automotive International

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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