Q3 2022 Northwest Atlanta Industrial Submarket Report

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ATLANTA INDUSTRIAL REPORT

Northwest Atlanta Industrial Submarket

Q3 2022

Northwest Atlanta Continues Momentum with Record Setting Quarter

ABSORPTION, DELIVERIES AND VACANCY RATE 8.0%

6,000,000

Northwest Atlanta Industrial saw positive absorption of 1,987,190 square feet in Q3, bringing the year-to-date total to positive absorption of 3,224,353 square feet. The Q3 figure represents the most positive absorption for a single quarter in Northwest Atlanta Industrial of all time. This record-setting absorption saw the submarket’s vacancy rate fall 100 basis points (1.0%) from 5.0% to 4.0%. Since Q4 of 2021, Northwest Atlanta Industrial seen over 6.4 million square feet of new space deliver, with 32 buildings totaling over 11.6 million square feet still in the construction pipeline. Rental rates have continued to rise in Northwest Atlanta, increasing 20.6% since Q4 of 2021, from $5.23 per square foot to $6.31 per square foot.

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

1.0%

0

2017

2018

2019

Absorption

2020

2021

Deliveries

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

55,995,296

3.5%

2.5%

(398,644)

24,130

407,814

2,454,522

$6.60

“BIG BOX” >250,000 SF

29,010,493

4.9%

10.0%

2,385,834

3,200,223

4,247,540

9,190,726

$5.64

Total

85,005,789

4.0%

5.0%

1,987,190

3,224,353

4,655,354

11,645,248

$6.31

NORTHWEST ATL IND

NORTHWEST ATLANTA INDUSTRIAL RECENT LEASES Tenant

Property

Owner/Developer

Sign Date

SF

Lease Type

Buske Logistics

81 Brown Loop

Greenway

Jul 2022

339,963

New Lease

Ceva Logistics

934 Peeples Valley Rd

Transwestern Development

Aug 2022

250,874

New Lease

1100 Shallowford Rd

Faropoint

Aug 2022

105,292

New Lease

Pacesetter Steel Service

NORTHWEST ATLANTA INDUSTRIAL RECENT INVESTMENT SALES Property 800 Cassville White Rd

Price

SF

$/SF

Date

Buyer

$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.

1100 Shallowford Rd

$10,500,000

105,292

$99.72

8/2/2022

Faropoint

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

Lincoln Southeast Industrial 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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