Q3 2022 Airport/I-85 South Industrial Submarket Report

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ATLANTA INDUSTRIAL REPORT

Airport/I-85 South Industrial Submarket

Q3 2022

Q3 Solid, Momentum Building in Airport/I-85 South Industrial

ABSORPTION, DELIVERIES AND VACANCY RATE

Atlanta’s second-largest industrial submarket saw positive absorption of 946,135 square feet in Q3 of 2022. Despite this gain, the submarket’s vacancy rate rose 130 basis points thanks to a large amount of new supply delivering. 6 buildings totaling over 3 million square feet finished construction in Q3, most of which were pre-leased. These tenants will occupy space in Q4, as Airport/I-85 South Industrial is expected to close 2022 with a huge quarter. 4 more buildings broke ground in Q3 as there is currently over 8.2 million square feet under construction in the submarket. The highlight move-in for Q3 was Costco occupying 907,000 square feet at 5390 Hunter Rd.

14,000,000

8.0%

12,000,000

7.0% 6.0%

10,000,000

5.0% 8,000,000 4.0% 6,000,000 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 Q3 ‘22

Vac Rate Q2 ‘22

Net Absorp Q3 ‘22

Net Absorp YTD

Deliveries YTD

SF Under Construction

Avg Rent (NNN)

<250,000 SF

54,649,665

4.7%

3.7%

(487,461)

20,822

414,742

3,667,435

$6.44

“BIG BOX” >250,000 SF

90,194,695

6.0%

4.4%

1,433,596

2,814,122

5,429,725

4,616,843

$5.25

144,844,360

5.5%

4.2%

946,135

2,834,944

5,844,467

8,284,278

$5.45

AIRPORT/I-85 S IND

Total

AIRPORT/I-85 SOUTH INDUSTRIAL RECENT LEASES Tenant Syncreon Technology UPS Supply Chain

Property

Owner/Developer

Sign Date

SF

Lease Type

7965 Bowen Rd

Becknell Industrial

Aug 2022

686,038

New Lease

3781 Southside Industrial Ct

Prologis

Oct 2022

406,989

Renewal

200 Metcalf Rd

TA Realty

Nov 2022

401,242

New Lease

Covenant Logistics Group

AIRPORT/I-85 SOUTH INDUSTRIAL RECENT INVESTMENT SALES Property

Price

SF

$/SF

Date

Buyer

$134,500,000

1,505,690

$89.33

9/8/2022

Kin Properties

700 Palmetto Logistics Pky - Bldg 3

$81,648,000

1,008,474

$80.96

8/31/2022

Ares Industrial REIT

33 Dart Rd

$20,750,000

104,880

$197.85

5/25/2022

Cargill

1595 Oakley Industrial Blvd

Lincoln Property Company Atlanta tracks industrial buildings that are 25,000 sf or greater.

Lincoln Southeast Industrial Available Listings

Forsyth 400 Commerce Center Bldg 100

Forsyth 400 Commerce Center 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

85,237 SF

43,587 SF

218,370 SF

306,376 SF

201,403 SF

38,400 SF

113,104 SF

Existing

Existing

Delivering Q4 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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