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September 2020

Atlanta Industrial Real Estate Summary: Leases, Sales, and Construction Stats

Atlanta Industrial Real Estate Property Report - Ashley Capital

From 2010 to present, Atlanta’s population has grown over 18%, making it one of the top 40 locations in the nation for population growth. In addition to favorable population stats, Atlanta’s employment rate and economy ranks in the Top 25 in the United States according to several sources: US News & World Report, the U.S. Bureau of Labor Statistics, USA Today, and WalletHub.

These rankings are a byproduct of several industries doing well in the region, including finance, healthcare/biomedical, manufacturing, media/communications, film/TV and logistics. All contribute to Atlanta’s thriving commercial real estate market.

Obviously, the current pandemic is brining uncertainty across all sectors of the economy; however, the industrial real estate sector in Atlanta seems to be holding strong.

“Deals that were in the works before the Pandemic are still moving forward, but at a much slower pace. Fortunately, I personally have no deals terminated because of the virus.

In fact we’ve had several showings of industrial real estate spaces in the last 2 weeks. I generally feel like the rebound will be great when this is over!”

– Bobby Mayson, Atlanta Industrial Real Estate Broker @ Ashley Capital

Ashley Capital compiles quarterly lease, sales, and construction project statistics for the region. These stats and highlights include: latest property deliveries, net absorption, vacancy rates, cap rates, price per square foot for sales, and much more.

Atlanta Industrial Real Estate Lease Stats Q2 2020

Key Atlanta Industrial Real Estate Lease Statistics

12 Month Deliveries in Square Feet: 16.1 million (17.5 million in Q1 2020)
12 Month Net Absorption in Square Feet: 10.9 million (11 million in Q1 2020)
Vacancy Rate: 6.0% (6.2% in Q1 2020)
12 Month Rent Growth: 6.2% (6.7% in Q2 2020)

Major Atlanta Industrial Leases (Past 12 Months)

1) Property: 139 Orchard Business Pky
Submarket: 
Fayette / Coweta County
Leased SF:
1,514,040
Quarter:
Q4 2019
Tenant: Goodyear Tire and Rubber
Tenant Rep: CBRE
Leasing Rep: Colliers International

2) Property: 7055 Campbellton Rd 
Submarket:
Fulton District
Leased SF:
1,128,400
Quarter:
Q2 2020
Tenant: Amazon
Tenant Rep: Not Listed
Leasing Rep:
Colliers International

3) Property: 5705 Campbellton Fairburn Rd
Submarket: 
Airport / North Clayton
Leased SF:
1,007,412
Quarter:
Q2 2020
Tenant: Amazon
Tenant Rep: Cushman & Wakefield
Leasing Rep: JLL

4) Property: 280 Bridgeport Blvd
Submarket:
Fayette / Coweta County
Leased SF:
1,002,150
Quarter:
Q1 2020
Tenant: Amazon
Tenant Rep: Not Listed
Leasing Rep: JLL

5) Property: 3150 Highway 42
Submarket: S Clayton / Henry County
Leased SF:
760,608
Quarter:
Q3 2020
Tenant: Not Listed
Tenant Rep: Not Listed
Leasing Rep: Cushman & Wakefield

Atlanta Industrial Real Estate Sales Stats Q2 2020

Key Atlanta Industrial Sales Statistics (Past 12 Months)

Sales Comparables: 1,069 (1,157 in Q2 2020)
Average Cap Rate:
7.6% (6.8% in Q2 2020)
Average Price/ SF: 
$64 ($64 in Q2 2020)
Average Vacancy at Sale: 13.1% (10.7% in Q2 2020)

Major Atlanta Industrial Property Sales

1) Property: Whirlpool Atlanta (195 King Mill Rd)
*Rating:
4
Year Built: 
2008
Building SF:
1,538,196
Vacancy:
0%
Price (PSF): 
$90,798,060 ($59)
Cap Rate: 
Not Listed

2) Property: Clayton Commerce Center (3120 Anvil Block Rd)
*Rating:
5
Year Built: 
2018
Building SF:
797,580
Vacancy: 
0%
Price (PSF): 
$59,289,000 ($74)
Cap Rate: 
Not Listed

3) Property: Building 300 (127 Liberty Industrial Pky)
*Rating: 5
Year Built: 2006
Building SF: 851,349
Vacancy: 
0%
Price (PSF): $58,357,396 ($649
Cap Rate: Not Listed

4) Property: Logistics Center at 440 Interstate West Pky
*Rating: 5
Year Built: 2017
Building SF: 780,575
Vacancy: 
0%
Price (PSF): $57,100,000 ($73)
Cap Rate: 5.0%

5) Property: Building 300 (127 Liberty Industrial Pky)
*Rating: 5
Year Built: 2006
Building SF: 851,349
Vacancy: 
0%
Price (PSF): $53,500,000 ($63)
Cap Rate: 4.6%

*Rating is 1-5, 5 being the best

Atlanta Industrial Real Estate Construction Stats Q2 2020

Key Atlanta Industrial Construction Projects Statistics

Properties Currently Under Construction: 75 (60 in Q2 2020)
Total Size (Square Feet):
24,086,357 (20,068,007 in Q2 2020)
Percent of Inventory:
3.6% (3.0% in Q2 2020)
Preleased: 44.3% (40.5% in Q2 2020)

Top Atlanta Industrial Properties Under Construction

1) Property: Amazon Fulfillment Center (2100 – 2200 W Park Place)
Rating*:
5
Building SF:
2,800,000
Stories:
4
Completion:
Q2 2021
Developer / Owner:
Seefried Properties, Inc / Fortress Investment Group LLC

2) Property: Prologis Orchard Hills (139 Orchard Business Pky)
Rating*:
5
Building SF:
1,514,040
Stories:
1
Completion:
Q1 2021
Developer/ Owner: 
Prologis / Prologis, Inc

3) Property: RiverWest Distribution Center (980 Douglas Hill Rd)
Rating*:
5
Building SF:
1,400,000
Stories:
1
Completion:
Q2 2021
Developer/ Owner: 
Prologis, Inc

4) Property: Majestic Airport Center (5115 Stonewall Tell Rd)
Rating*:
5
Building SF:
1,150,000
Stories:
1
Completion:
Q1 2021
Developer/ Owner:
Majestic Realty Co

5) Property: Building B (1250 Cassville White Rd)
Rating*:
5
Building SF:
1,107,960
Stories:
1
Completion:
Q3 2021
Developer/ Owner: 
IDI Logistics

*Rating is 1-5, 5 being the best

Data Sources: Ashley Capital & CoStar