Q3 2022 I-75 South Industrial Submarket Report

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ATLANTA INDUSTRIAL REPORT

I-75 South Industrial Submarket

Q3 2022

Strong Q3 for I-75 South Industrial as Construction Booms

ABSORPTION, DELIVERIES AND VACANCY RATE 16%

10,000,000 9,000,000

The I-75 South Industrial submarket saw positive absorption of 980,259 square feet in Q2, bringing the year-to-date figure for the submarket to nearly 2 million square feet. I-75 South Industrial’s vacancy rate fell 30 basis points (0.3%) in Q3, finishing at 3.2%. This is the second-lowest vacancy rate that the submarket has seen in over 20 years and represents a 230 basis point (2.3%) fall in vacancy rate from Q1 of 2022. There have been 5 buildings totaling 2.1 million square feet deliver this calendar year, with a further 9 buildings totaling 5.2 million square feet of under construction. This is the most supply that has ever been under construction in the I-75 South Industrial Submarket.

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 Q3 ‘22

Vac Rate Q2 ‘22

Net Absorp Q3 ‘22

Net Absorp YTD

Deliveries YTD

SF Under Construction

Avg Rent (NNN)

<250,000 SF

16,964,792

3.3%

1.8%

(43,537)

64,067

210,560

449,240

$5.28

“BIG BOX” >250,000 SF

53,476,534

3.1%

4.0%

1,026,796

1,935,365

1,917,711

4,801,948

$4.94

Total

70,441,326

3.2%

3.5%

980,259

1,999,432

2,128,271

5,251,188

$5.14

I-75 SOUTH IND

I-75 SOUTH INDUSTRIAL RECENT LEASES Tenant Dollar General Conn’s HomePlus

Property

Owner/Developer

Sign Date

SF

Lease Type

500 Business Center Dr

Growth Capital Partners

Aug 2022

712,040

New Lease

Clayton 75 Logistics Center

Hillwood Development

Jul 2022

705,833

New Lease

201 Greenwood Ct

Blackstone

Nov 2022

395,000

New Lease

Caterpillar

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 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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