| Airport/I-75 South Market – 4th Qtr. 2011 |
(Reported by)
Chris Copenhaver
Director
Cushman & Wakefield
of GA, Inc.
404-853-5240
chris.copenhaver@cushwake.com
Chris has 13 years of CRE experience.
His largest done deal is 660,000 square feet. |
Effective Rental Rates:
Warehouse/Distribution Space: $2.25 to $4.50 per sf
Business Service Space: $4.00 to $10.50 per sf
Concessions:
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Free Rent: 1 month free per year of lease term, given “outside the term”. |
| • |
Tenant Improvement Allowance: Business Service Space - $8 - $10
PSF, Warehouse/Distribution Space - $1.00 - $6.00 PSF. |
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Moving Allowances: Landlord’s are providing “Beneficial Occupancy” in lieu of moving allowances. |
Supply & Demand:
| • |
Existing Available Space: Good to Very Good |
| • |
New Available Space: Shortage |
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Deal Activity: Shortage |
New industrial projects in the area: No new projects in the market.
Major industrial leases or announcements:
Kuehne + Nagel – 300,000 SF / 100 Interstate South, McDonough, GA
GENCO – 256,000 SF / 200 Interstate South, McDonough, GA
GENCO ATC – 329,000 SF / 250 Declaration Drive, McDonough, GA
Georgia Pacific – 429,000 SF / 250 Declaration Drive, McDonough, GA
Other trends in the submarket that should be noted: Activity in bulk distribution space has consisted of renewals & short term leases.
Tenants are making commitments (lease renewals) to remain in the market, but are also downsizing the space size.
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| Airport/I-75 South Industrial Property Short-List* |
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220 Greenwood Court
McDonough, GA
RATE:
$2.65 (NNN)
MAX CONTIG:
504,000 SF |
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| Cushman & Wakefield |
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King Mill Distribution Park - Bldg. 3
1793 Highway 42
RATE:
$2.90 (NNN)
MAX CONTIG:
119,050 SF |
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| Weeks Robinson Properties |
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230 & 309 Johnson Road at Southfield Commons
Forest Park, GA
RATE:
$3.95/sf
MAX CONTIG:
48,000-72,000 SF |
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| Lee & Associates Commercial Real Estate Services |
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| Central Atlanta/Chattachoochee Industrial – 4th Qtr. 2011 |
(Reported by)
Stephen C. Ratchford, SIOR/CCIM
Senior Vice President
King Industrial Realty, Inc.
404-942-2003
sratchford@kingindustrial.com |
Effective Rental Rates:
Warehouse/Distribution Space: $1.50 to $4.50 per sf
Business Service Space: $8.50 to $11.00 per sf
Concessions:
| • |
Free Rent & Tenant Improvement Allowance: 1 month per year is the most common scenario. Depending on the strength of the tenant, typically as-is or paint and carpet in the office. |
Supply & Demand:
| • |
Existing Available Space: Very Good |
| • |
New Available Space: Shortage |
Major industrial leases or announcements: The only reported large deal during the 3rd quarter 2011 was Anatomy Supply Partners purchase of 68,000 sf on Atlanta Industrial Parkway. The long term plans for transportation initiatives; i.e., the Beltline and The Gulch, should eventually increase the demand for intown space, whether for use as light industrial or adaptive reuse of the older buildings in the area. |
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| Central Atlanta/Chattachoochee Industrial Property Short-List* |
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1200 White Street (For Sale or Lease)
Atlanta, GA
RATE:
Inquire
MAX CONTIG:
287,000 SF |
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| Two Realty Partners |
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| Conyers/I-20 East – 4th Qtr. 2011 |
(Reported by)
Bill Randolph
Associate Broker
King Industrial Realty, Inc.
404-942-2045
brandolph@kingindustrial.com |
Effective Rental Rates:
Warehouse/Distribution Space: $2.00 to $3.00 per sf
Business Service Space: $4.00 to $6.00 per sf
Concessions:
| • |
Free Rent: Landlords are holding to the standard one month per year of lease term. |
| • |
Tenant Improvement & Moving Allowances: Minimal. |
Supply & Demand:
| • |
Existing Available Space: Good |
| • |
New Available Space: Shortage |
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Deal Activity: Shortage |
Major industrial leases or announcements:
There were a few nice deals done during the third quarter of 2011. Pratt Industries leased 125,000 square feet on Sigman Road, North American Cast Iron Products took 31,600 square feet on City Pond Road and Diversitech leased 31,000 square feet on Dogwood Drive.
The completion of the extension of Lithonia Industrial to Rock Chapel/Highway 124 will significantly change the traffic pattern in the Lithonia area. This new route will increase the visibility of some larger tracts of industrial land bringing new opportunities to light. |
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| Fayette/Coweta/I-85 South – 4th Qtr. 2011 |
(Reported by)
Bradley C. Pope, CCIM
Senior Vice President
NAI Brannen Goddard
404-812-4013
bpope@naibg.com
Bradley has 18 years of CRE experience, and has done over 75,000,000 SF of transactions, the largest of which was a 1,350,000 SF sale. |
Effective Rental Rates:
Warehouse/Distribution Space: $2.25 to $3.25 per sf
Business Service Space: $4.80 to $7.25 per sf
Concessions:
| • |
Free Rent: Yes, with a credit worthy tenant. |
| • |
Tenant Improvement Allowance: On an as needed basis. Good condition is baseline with additional tenant specific improvements typically being amortized, while legitimate capital improvements are typically capitalized. Tenant credit is highly scrutinized with even moderate amounts of TI. Letters of credit and as-is (with good condition) deals are becoming more common. |
| • |
Moving Allowances: Yes, although a moving allowance is cash up front, it is typically not very attractive in the context of the net effective deal as it will be reflected in the other terms, most credit companies prefer a more efficient financial structure. |
Supply & Demand:
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Existing Available Space: Very Good |
| • |
New Available Space: Good |
New industrial projects in the area: No new projects in the area.
Major industrial leases or announcements: None as of quarter end.
Other trends in the submarket that should be noted: There has been recent activity in Coweta with Kia related suppliers and others looking. Coweta should also ultimately benefit from the continued relative strength of the Fairburn industrial area.
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| Fulton Industrial/I-20 West – 4th Qtr. 2011 |
(Reported by)
Bruce Logue
Principal, Agency Leasing
Avison Young
770-916-6150
bruce.logue@avisonyoung.com
Bruce has over 41 years of CRE experience, his largest deal being 600,000 SF. He received NAIOP's Lifetime Achievement Award in 2006, was a Top 5 Producer for 11 years, and is part of the GA Economic Development Association. |
Effective Rental Rates:
Warehouse/Distribution Space: $2.00 to $2.75
Business Service Space: $3.00 to $4.50
Concessions:
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Free Rent: One month per year. |
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Tenant Improvement Allowance: Mostly turnkey. |
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Moving Allowances: Free rent. |
Supply & Demand:
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Existing Available Space: Very Good |
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New Available Space: Shortage |
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Deal Activity: Shortage |
New industrial projects in the area: New fire station at exising site on Robinson Dr. and new aeronautical museum at Fulton County Airport.
Major industrial leases or announcements: Trulite Glass - 96,274 SF, Webgistix - 32,678 SF, New Century Group - 10,983 SF, Trans Atlanta - 18,665 SF
Other trends in the submarket that should be noted: More short term leases and renewals; Newly formed CID and Opportunity Zone are very positive and active now.
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| North Central/GA 400 – 4th Qtr. 2011 |
(Reported by)
Neal Shiver
Associate Broker
King Industrial Realty
404-942-2046
nshiver@kingindustrial.com |
Effective Rental Rates:
Warehouse/Distribution Space: $4.75 to $6.50 per sf
Business Service Space: $6.00 to $8.00 per sf
Concessions:
| • |
Free Rent & Tenant Improvement Allowance: One month per year of lease and/or new carpet and paint. |
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Moving Allowances: None. |
Supply & Demand:
| • |
Existing Available Space: Good |
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New Available Space: Shortage |
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Deal Activity: Shortage |
Area Trends: Activity was down in the 3rd quarter of 2011; in fact, it was the lowest seen in this submarket in more than 2 years. We can usually count on the 80/20 rule for industrial leases - 80% of the deals are 20,000 square feet or under. With only 2 deals this quarter coming in over the 20,000 sf mark, that typical 80% rose to 96%. Although not known for its big box deals, an increase in 30,000 to 50,000 square foot deals is needed before we see real improvement in the North Central submarket.
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| North Central/GA 400 Industrial Property Short-List* |
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The Meadows
5985 Cabot Parkway
RATE:
$5.50
MAX CONTIG:
138,000 SF |
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| Colliers International |
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| Northeast/I-85/I-985/GA 316 – 4th Qtr. 2011 |
(Reported by)
Allan W. Anderson, CCIM
Senior Vice President
Dexter Companies, LLC
404-239-9400
aanderson@dextercompanies.com
Allan has 30 years of CRE experience. |
Effective Rental Rates:
Warehouse/Distribution Space: $3.50 to $5.50 per sf
Business Service Space: $6.50 to $8.50 per sf
Concessions:
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Free Rent: 1 month per year of lease term. |
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Tenant Improvement Allowance: $1.00 to $6.00 depending on product type, lease term, credit of tenant. |
Supply & Demand:
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Existing Available Space: Good |
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New Available Space: Shortage |
New industrial projects in the area: None.
Major industrial leases or announcements:
SED International, Inc. - 71,884 SF at New Point Place IV
CMD Services - 67,200 SF at Shawnee Ridge
Hendrick Chevrolet Parts - 60,500 SF at Northmont
Hilldrup Moving & Storage - 62,500 SF at Progress Center
I-Tech E-Services, LLC - 44,260 SF at Steve Reynolds Blvd.
Other trends in the submarket that should be noted: Lack of new construction and limited industrial sites within 15 to 20 miles of I-285 are resulting in a gradual firming of the market. The best space options are being leased and a reasonable increase in user demand will continue the trend towards rate recovery and lower concession packages.
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| Northeast/I-85/I-985/GA 316 Industrial Property Short-List* |
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2935 Shawnee Industrial Way
Suwanee, GA
RATE:
$2.95
MAX CONTIG:
196,215 SF |
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| Colliers International |
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| Northwest/I-75/I-575 – 4th Qtr. 2011 |
(Reported by)
Walker Wellford, CCIM
Director of Leasing -
Industrial Division
Taylor & Mathis
770-795-1330
wwellford@taylormathis.com
Walker has 14 years of CRE experience, and is a NAIOP Million Dollar Club Member. |
Effective Rental Rates:
Warehouse/Distribution Space: $3.25 - $4.50 per sf
Business Service Space: $5.00 - $8.00 per sf
Concessions:
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Free Rent: One month per year of term is typical. |
| • |
Tenant Improvement Allowance: $5-$10 on shell space, and $1-$2 on 2nd generation space. |
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Moving Allowances: Not typical, usually try to provide free rent to achieve the same result. |
Supply & Demand:
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Existing Available Space: Very Good |
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New Available Space: Very Good |
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Deal Activity: Shortage |
New industrial projects in the area: Taylor & Mathis has first generation space at Chastain Meadows, Republic Property has first generation space at Jiles Road Commerce Center and Majestic has first generation space at Cherokee Commerce Center. Also, the Big Shanty Road extension project will provide better East-West access from I-575 to I-75 and relieve traffic congestion on Barrett Parkway and Chastain Road.
Major industrial leases or announcements: Tapco signed a lease for 60,000 sf at Chastain Distribution Center. SGS signed an expansion and renewal at Chastain Meadows with Taylor & Mathis for 58,000 sf. Derse will be expanding into 55,000 sf at 1100 Cobb Place and Window World expanded into 20,000 sf at 2125 Corporate Drive.
Other trends in the submarket that should be noted: It appears that several deals are in the market that may take some of the first generation space off the market. Kennesaw State’s presence in the market continues to grow with acquisition of land for new facilities.
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| Stone Mountain – 4th Qtr. 2011 |
(Reported by)
William D. Johnston, SIOR
Senior Vice President
King Industrial Realty, Inc.
404-942-2012
bjohnston@kingindustrial.com |
Effective Rental Rates:
Warehouse/Distribution Space: $2.50 to $3.25 per sf
Business Service Space: $4.00 to $6.00 per sf
Concessions:
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Free Rent & Tenant Improvement Allowance: Concessions continue to stand at one month per year of lease term. Tenant improvements, in most cases, remain new carpet and paint. |
Supply & Demand:
| • |
Existing Available Space: Very Good |
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New Available Space: Shortage |
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Deal Activity: Somewhere below good and above shortage. Third quarter 2011 was a bit better than 2nd quarter, but not where it needs to be. |
Major industrial leases or announcements: Tool Source Warehouse gave up their Norcross location and expanded into the Stone Mountain submarket during the third quarter of 2011 taking 100,000 sf in Tucker. The newly formed Stone Mountain Community Improvement District bodes well for this submarket. Projects are in the works aimed at boosting the area’s curb appeal and economic strength. According to their website, CID leaders hope to accomplish more in 15 to 18 months than some CIDs take years to complete. |
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| *Short-List represents featured properties inside Dorey’s Atlanta Industrial Guide. |
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