Q2 2022 Northwest Atlanta Industrial Submarket Report

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ATLANTA INDUSTRIAL REPORT

Northwest Atlanta Industrial Submarket

Q2 2022

Another Strong Quarter as Construction Booms in Northwest Atlanta

ABSORPTION, DELIVERIES AND VACANCY RATE 8.0%

6,000,000

Northwest Atlanta bounced back in Q2, seeing positive absorption of 1,520,339 square feet, the submarket’s second-most positive absorption in a quarter of all time, behind only Q4 of 2021. Despite the record-setting positive absorption, Northwest Atlanta has seen its vacancy rate rise thanks to large amounts of new deliveries. Since the start of Q4 there has been over 5.8 million square feet of new supply in the submarket. Leasing momentum has been strong, and this is a case where many spaces have been accounted for but not yet occupied by a tenant: the amount of available square feet in Northwest Atlanta is lower than the amount of vacant square feet. As construction delays lessen and tenants move in, expect Northwest Atlanta’s vacancy to fall back to its historical range over the past 5-10 years.

7.0%

5,000,000

6.0% 4,000,000

5.0% 4.0%

3,000,000

3.0%

2,000,000

2.0% 1,000,000

0

1.0%

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

55,865,513

2.5%

3.7%

705,950

518,943

207,989

1,955,333

$6.43

“BIG BOX” >250,000 SF

28,375,542

11.5%

9.5%

814,389

814,389

3,707,319

9,329,255

$4.92

Total

84,241,055

5.5%

5.6%

1,520,339

1,333,332

3,915,308

11,284,588

$5.80

NORTHWEST ATL IND

NORTHWEST ATLANTA INDUSTRIAL RECENT LEASES Tenant Bergen Logistics

Property

Owner/Developer

Sign Date

SF

Lease Type

7575 Cobb International Blvd

Oakmont Industrial Group

May 2022

484,323

New Lease

NPS Ceva Logistics

86 Carson Loop

Hillwood Development

Jun 2022

340,284

New Lease

934 Peeples Valley Rd

Transwestern Development

Aug 2022

250,874

New Lease

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

800 Cassville White Rd

$48,800,000

376,980

$129.45

5/26/2022

KKR

1000 Union Ct

$18,304,000

173,587

$105.45

5/4/2022

High Street Realty Co.

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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