Atlanta Industrial Market Finishes the Year Strong in Several Categories
The Atlanta Industrial market capped off a successful year with its strongest quarter yet at 6,923,271 square feet of positive absorption, bringing the yearto- date total to 23,306,223 square feet. While this absorption total does not come close to the record set in 2021 of 42,197,033, it is the third highest total found in the previous five years. Despite absorption remaining strong this quarter, vacancy continued to climb by 30 basis points to a current rate of 4.3%. This increase vacancy can be attributed to a record level construction pipeline that delivered 33,043,426 square feet in 2022. This strong demand for industrial space has not only led to record delivery levels, but also record level rental rates. The overall NNN asking rate now stands at $6.22 per square foot representing an 26.1% increase year-over-year.
To summarize these accomplishments, the Atlanta industrial market finished the year top five nationally in absorption, new supply, and SF under construction.
LEASING ACTIVITY
Despite the industrial pipeline continuing to deliver record amounts of space, Atlanta’s industrial leasing activity took a slight dip this quarter recording 8,740,417 square feet in leases signed. Nonetheless, leasing activity remained healthy for the year with over 48 million square feet signed in 2022. Furthermore, of the 33,043,426 square feet of space delivered in 2022 across the market, nearly 70% is already leased. In addition to newly delivered space, the outlook for future leasing activity remains bullish with 21.4% of the projects under construction leased currently.
The strongest submarket not only this quarter, but this year was Northeast Atlanta. The submarket led the way this year in absorption (8,183,987 sf), deliveries (11,334,513 sf), and under construction (11,502,465 sf). Following closely behind are Northwest Atlanta, I-20W/ Fulton, and South Atlanta. All of which share an unusual common theme, an increase in vacancy. However, this commonality is not alarming as many of the vacant deliveries causing this rise in vacancy are already pre-leased and awaiting move ins.
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 Q4 2022 INSIDER REPORT Lincoln Industrial
Tenant Property Submarket Owner/Developer SF Lease Type Sam's West Riverwest Distribution Center Phase I-20 West/Fulton Ind Prologis 1,110,960 New Lease GFA Total Logistic Solutions Pendergrass Logistics Center Northeast Atlanta Ind Core5 Industrial Partners 532,980 New Lease HD Supply Gillem Logistics Center - Building Airport/I-85 South Ind Robinson Weeks Partners 378,520 New Lease WESCO Distribution Gwinnett Progress Center Northeast Atlanta Ind Dalfen Industrial 326,019 New Lease Flexential Riverside West Business Park Bldg 3 I-20 West/Fulton Ind Rooker 310,000 New Lease Pacific Global Logistics North Holland Distribution Center Northeast Atlanta Ind Longpoint Realty 234,630 New Lease 80 Acres Farms East Atlanta Logistics Center Snapfinger/I-20 East Ind 80 Acres Farms 200,880 New Lease Aeronet Worldwide 7776 Jonesboro Rd, Bldg 3 Airport/I-85 South Ind Nuveen 200,439 New Lease Childrens Healthcare of Braselton Crossroads, Bldg 200 Northeast Atlanta Ind Westcore 160,887 New Lease Graham Packaging Hartman Business Center, Bldg II I-20 West/Fulton Ind Blackstone Inc. 131,505 Renewal Netflix 2251 Sylvan Rd, Suite 200 Airport/I-85 South Ind WPM Commercial 130,249 New Lease TOP LEASES Q4 2022
Market Snapshot
net absorp YTD
net absorp Q4 46,844,042 under constr sf 0% 1% 2% 3% 4% 5% 6% 7% 8% 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 2017 2018 2019 2020 2021 2022 YTD Absorption Deliveries Vacancy Rate ABSORPTION, DELIVERIES AND VACANCY RATE Source: CoStar, LPC Research Source: CoStar
4.3% vacancy rate 23,306,161
6,702,223
MARKET STATISTICS
Need More Market Intel?
Nathan Bell Research Manager
404.689.3216
nbell@lpc.com
Turner Fortin Leasing Associate 404.863.9931
tfortin@lpc.com
450 Atlanta, GA 30305 404 266 7600
About LPC SE: Lincoln Property Southeast is a commercial real estate firm offering a comprehensive suite of value-added services for our clients. With our substantial local presence and history in the Southeast region, we are ideally situated to provide a superior service, which comes from knowing the goals and challenges faced by our clientele: tenants, investors, lenders and owners of commercial real estate. Our people and our philosophy are the key ingredients for Lincoln’s solid track record of success.
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.
Lincoln Property Company Southeast 3405 Piedmont Road, Suite
LINCOLN INDUSTRIAL INDISDER REPORT Q4 2022
BY SUBMARKET Total Inventory SF Vacancy Rate Q4‘22 Vacancy Rate Q4 ‘22 Net Absorp Q4 ‘22 Net Absorp 2022 YTD Deliveries Q4 ‘22 Under Constr Avg Rent (NNN) AIRPORT/I-85 SOUTH IND 146,059,863 4.2% 5.2% 2,551,628 5,822,369 1,148,769 6,611,756 $5.55 CENTRAL ATL/CHATTAHOOCHE IND 20,142,067 4.6% 5.5% 187,659 74,178 - 215,000 $11.25 I-75 SOUTH IND 72,403,332 4.9% 2.4% 112,564 2,381,886 1,922,399 4,857,984 $4.80 I-20 WEST/FULTON IND 113,451,597 3.0% 2.9% 480,497 1,321,024 668,998 6,881,276 $6.04 NORTHEAST ATLANTA IND 204,638,372 4.9% 4.2% 2,847,748 8,183,987 4,320,180 13,112,361 $5.97 NORTHWEST ATLANTA IND 87,012,334 5.1% 3.8% 322,523 3,746,508 1,573,643 11,502,465 $6.27 NORTH CENTRAL ATLANTA IND 20,118,782 4.9% 2.3% 64,411 477,949 611,365 205,000 $9.71 SNAPFINGER/I-20 EAST IND 46,678,439 4.6% 3.7% 170,668 846,254 639,792 3,458,200 $6.40 STONE MOUNTAIN IND 23,515,709 1.4% 1.3% (35,475) 452,006 - - $6.52 Total Market 734,020,495 4.3% 4.0% 6,702,223 23,306,161 10,885,146 46,844,042 $6.22 BY PROPERTY TYPE WAREHOUSE & DISTRIBUTION 590,141,417 4.4% 3.9% 6,923,271 21,181,674 10,885,146 46,414,042 $6.28 MANUFACTURING 82,357,978 4.5% 4.4% (18,936) 1,949,060 - 430,000 $4.15 SHALLOW BAY 61,521,100 2.5% 2.2% (202,112) 175,427 - - $7.07 Total Market 734,020,495 4.3% 4.0% 6,702,223 23,306,161 10,885,146 46,844,042 $6.22 Source: CoStar, LPC Research
Forsyth 400 Commerce CenterBldg 100 Forsyth 400 Commerce CenterBldg 200 Airport West 500 Joe Frank Harris Pkwy SE Conyers Logistics Center 170 Chastain Meadows Westridge Logistics Center 2705-2715 Ronald Reagan Blvd, Cumming, GA 2705-2715 Ronald Reagan Blvd, Cumming, GA 3625 Naturally Fresh Blvd, Atlanta, GA Joe Frank Harris Pkwy SE, Emerson, GA 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
