NEW SUPPLY, ABSORPTION AND VACANCY RATES SUBMARKET REPORT ATLANTA www.colliers.com/atlanta MARKET INDICATORS Q4 2011 | I-20W/FULTON INDUSTRIAL I-20 West/ Fulton Ind TRENDS & HIGHLIGHTS 8% 9% 10% 11% 12% 13% 14% 15% 16% (400,000) (200,000) 0 200,000 400,000 600,000 800,000 1,000,000 4Q10 1Q11 2Q11 3Q11 4Q11 Absorption Deliveries Vacancy Total SF 90,909,346 Vacancy Rate 15% YTD Net Absorption 15,424 YTD Deliveries 0 Under Construction 0 Avg. Warehouse Rate $2.99 NNN UPDATE Recent Transactions in the Market SALES ACTIVITY PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER 6555 Fulton Industrial Blvd. $12,375,000 375,000 $33.00 KTR Capital Partners Atlanta Ind Park - 6 prop. $10,000,000 317,764 $31.47 Cobalt Capital Partners 660 Campbell Ct. $7,390,000 223,968 $33.00 KTR Capital Partners 4785 Fulton Industrial Blvd. $5,125,000 342,400 $14.97 Waste Pro USA LEASING ACTIVITY TENANT PROPERTY ADDRESS SIZE SF TYPE New Breed Logistics 5400 Fulton Industrial Blvd. 439,487 Warehouse Lease Allied Aerofoam 605 Selig Dr. 170,000 Warehouse Lease Best Warehouse & Trans. 6255 Fulton Industrial Blvd. 120,960 Warehouse Lease Core-Mark International 3655 Atlanta Ind. Dr. - 100 67,238 Warehouse Lease • Following three consecutive quarters of negative absorption, the I-20 West/Fulton Industrial submarket saw market conditions improve in the fourth quarter with almost 400,000 SF absorbed. The largest move-in was Czarnowski Display services which occupied 569,673 SF at 7545 Hartman Industrial Way; basically accounting for all of the positive activity. • I-20 West/Fulton Industrial has been slower to recover than Atlanta’s two largest industrial submarkets. Whereas vacancy rates have shown some downward trend in South Atlanta and Northeast Atlanta, the overall vacancy rate for I-20 West/Fulton Industrial has remained level. • IDI recently announced it will begin construction of Atlanta’s first spec industrial building since 2008 in the submarket at Riverside Business Park. The building will be 650,000 SF. Square Feet Q4 2011 Projected Q1 2012 VACANCY NET ABSORPTION CONSTRUCTION — RENTAL RATE — Source: CoStar Property, Colliers Research
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NEW SUPPLY, ABSORPTION AND VACANCY RATES
SUBMARKET REPORTATLANTA
www.colliers.com/atlanta
MARKET INDICATORS
Q4 2011 | I-20W/FULTON INDUSTRIAL
I-20
West/
Fulton Ind
TRENDS & HIGHLIGHTS
8%
9%
10%
11%
12%
13%
14%
15%
16%
(400,000)
(200,000)
0
200,000
400,000
600,000
800,000
1,000,000
4Q10 1Q11 2Q11 3Q11 4Q11
Absorption Deliveries Vacancy
Total SF 90,909,346
Vacancy Rate 15%
YTD Net Absorption 15,424
YTD Deliveries 0
Under Construction 0
Avg. Warehouse Rate $2.99 NNN
UPDATE Recent Transactions in the Market
SALES ACTIVITY
PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER
6555 Fulton Industrial Blvd. $12,375,000 375,000 $33.00 KTR Capital PartnersAtlanta Ind Park - 6 prop. $10,000,000 317,764 $31.47 Cobalt Capital Partners660 Campbell Ct. $7,390,000 223,968 $33.00 KTR Capital Partners4785 Fulton Industrial Blvd. $5,125,000 342,400 $14.97 Waste Pro USA
LEASING ACTIVITY
TENANT PROPERTY ADDRESS SIZE SF TYPE
New Breed Logistics 5400 Fulton Industrial Blvd. 439,487 Warehouse Lease
Allied Aerofoam 605 Selig Dr. 170,000 Warehouse Lease
Core-Mark International 3655 Atlanta Ind. Dr. - 100 67,238 Warehouse Lease
• Following three consecutive quarters of negative absorption, the I-20 West/Fulton Industrial submarket saw market conditions improve in the fourth quarter with almost 400,000 SF absorbed. The largest move-in was Czarnowski Display services which occupied 569,673 SF at 7545 Hartman Industrial Way; basically accounting for all of the positive activity.
• I-20 West/Fulton Industrial has been slower to recover than Atlanta’s two largest industrial submarkets. Whereas vacancy rates have shown some downward trend in South Atlanta and Northeast Atlanta, the overall vacancy rate for I-20 West/Fulton Industrial has remained level.
• IDI recently announced it will begin construction of Atlanta’s fi rst spec industrial building since 2008 in the submarket at Riverside Business Park. The building will be 650,000 SF.
Squa
re F
eet
Q4 2011Projected
Q1 2012
VACANCY
NET ABSORPTION
CONSTRUCTION —
RENTAL RATE —
Source: CoStar Property, Colliers Research
UNITED STATES:
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COLLIERS INTERNATIONAL
ATLANTA INDUSTRIAL SPECIALISTS:
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COLLIERS INTERNATIONAL I-20 WEST/FULTON INDUSTRIAL LISTINGS
FOR SALE
# PROPERTY SF AVAIL. BROKER(S)
6 6355 Boat Roack Blvd. 296,290 Scott Plomgren
9 100 Doris Williams Industrial 90,000 Chris Cummings / Sean Boswell
10 5125 Fulton Industrial Blvd. 149,386 Chris Cummings / Sean Boswell
