IPG E-Market Report | September 2023

M ARKET R EPORT

A Guide to Industrial Real Estate in Northeast Georgia

LISTING

546 Old Liberty Hill Road | Stephens County

±100,000 - 211,046 sq. ft. industrial facility for lease in Toccoa, GA. Building has a paved lay down yard, fenced truck court, and ample parking (±185 spaces). Section A is ±111,046 sq. ft. and Section B is ±100,000 sq. ft. Excellent location in the I-85 corridor with access to major industrial businesses. See inside feature for more details. Contact Drew or Floyd - #3095

member

LOCAL KNOWLEDGE GLOBAL NETWORKS

I-85 Market Recap

(For period changes Q3 2022 - Q3 2023 est.)

Data reflects information related to Industrial & Flex Space

Inventory SF

301M

Prior Period 292M

(+3.2%)

Under Construction SF 9.5M

(-36.9%)

Prior Period 15M

12 Mo Net Absorption SF

6.7M

Prior Period 9.2M (-27%)

Vacancy Rate

4.4%

Prior Period 3.7% (+0.7%)

Market Rent Per SF $8.98

(+8.0%)

Prior Period $8.32

Market Sale Price Per SF $110

Prior Period $106 (+4.2%)

Market Cap Rate 6.8% (+0.4%)

Prior Period 6.4%

Electrifying the Southeast: The Rise of the Electric Vehicle Market and Battery Belt in Georgia

The rise of the electric vehicle (EV) market thus far has been exciting to watch, and its impact is not limited to cleaner transportation and reduced carbon emissions. The Southeastern region of the United States, particularly Georgia, is emerging as a pivotal player in the electric vehicle industry. Notably, what's been coined the "Battery Belt" has been forming in this region, with significant impacts in both the industrial market and the industrial real estate market.

The Electric Vehicle Market in the Southeast

The Southeastern United States has been experiencing substantial growth in the electric vehicle market. Several factors contributed to this growth and adoption of EVs in the region:

1. Regulatory Support: State and local governments in the Southeast and State of Georgia are offering various incentives to consumers, commercial businesses, and manufacturers to promote EV adoption.

See Georgia Laws & Incentives here

2. Infrastructure Investment: Public and private investments in EV infrastructure are rapidly expanding throughout the Southeast, including more EV charging stations. This development addresses consumer concerns and encourages more people to consider EVs.

The Battery Belt Formation

The term "Battery Belt" refers to the growing concentration of electric vehicle manufacturers, battery manufacturers, and recycling facilities in the Southeastern United States. Georgia is a key player in this trend, and several factors make it an attractive location for EV and battery production:

1. Access to Suppliers and Raw Materials: Georgia is strategically located with access to essential raw materials like lithium and cobalt, crucial components in battery manufacturing. One primary source being the Kings Mountain Lithium Mine in South Carolina. Another factor is the number of smaller suppliers who are locating around the major players in the industry, which increases lead times and lowers logistics concerns.

2. Existing Infrastructure: Georgia has a robust, existing transportation infrastructure, including ports, highways, and railways, facilitating the transportation of materials and finished products.

3. Skilled Workforce: The state boasts a skilled workforce and a strong history of manufacturing, making it an ideal location for battery production facilities.

Impact on the Industrial & IRE Market

The rise of the electric vehicle market and the Battery Belt formation in Georgia have substantial effects on both the industrial market and the industrial real estate (IRE) market in the region:

1. Increased Demand for Industrial Space: Battery manufacturing facilities, as well as EV production plants, require significant amounts of industrial space. This surge in demand for industrial real estate has led to increased construction and development in the region.

2. Development Opportunities: The need for specialized facilities and warehouses to support battery and EV production will continue to offer opportunities for developers and investors.

3. Infrastructure Upgrades: To accommodate the growing demand for industrial space, we can assume that infrastructure improvements, such as expanded transportation networks and utility services, will continue to increase over time, thus increasing the overall desirability of these areas.

4. Job Creation: The growth of the EV industry and associated supply chains is generating a substantial number of jobs in manufacturing, recycling, research and development, and logistics, further boosting the industrial sector.

5. Economic Growth: The influx of investment in battery and EV production is a major contribution to economic growth in Georgia and the surrounding states. This growth benefits the entire region, and not only the industrial sector, but everyone from consumers to suppliers to service providers to manufacturers.

As the EV market continues to surge, Georgia and its neighbors are set to reap the rewards of investments.

RIDGEWAY 85 LOGISTICS CENTER

1532 Ridgeway Church Rd Jackson County

Build-to-Suit

±315,000 Sq. Ft. Industrial Building For Lease in Commerce, GA

±315,000 sq. ft. build-to-suit building for lease in Commerce, GA. Property features include ±70 dock spaces, 87 trailer spaces, and 224 car spaces. Great for regional supplier, OEM or distributor. Located across from SK Battery America and ±20.7 miles from the new inland port in Gainesville, GA. Easy access to I-85 via Exit 147 (Hwy 98) or Exit 149 (US 441).

Contact Floyd or Drew - ID #10786

FOR LEASE

CELEBRATING 20 YEARS

A SPECIAL THANK YOU TO JESSICA MCCORD

20 yearsfor Thank you

We would like to take a moment to recognize Jessica McCord and her incredible dedication and hard work as she marks two decades with Industrial Properties Group, Inc. Jessica’s commitment and knowledge is a driving force behind our success and we are truly grateful for all she brings to the IPG team. Thank you Jessica for 20 years!

The IPG Team celebrated Jessica with a surprise lunch at 2-Dog Cafe in Downtown Gainesville.

BEST WISHES TO OUR INTERN

A LITTLE ABOUT PAYTON DRAKE

Each summer, IPG mentors a college student from the North Georgia region in hopes of providing opportunities for hands-on business experiences. This year, we had the pleasure of having Payton Drake join us for our summer intern program. We wish Payton the very best as he enters his Senior year at Wofford!

"During my internship at IPG, I’ve been able to learn a lot through the hands-on teaching they provide. Seeing the properties has been beneficial to my future plans and I have really enjoyed the small company feel that IPG gives.

Hometown: Decatur, GA

High School: Decatur High School

College: Wofford College (Rising Senior)

Program of Study: BBA in Finance

Hobbies/Extracurricular: I enjoy intramural sports and being part of my fraternity, Kappa Sigma.

Future Plans: I am currently taking my Real Estate Pre-Licensing courses. After college, I plan to do something in the real estate field, either residential or commercial.

SECTION A

±111,046 sq. ft.

13’8” ceiling height

27’6” x 30’ column spacing

12 dock high doors

1 drive-in door

800 & 1000 amp/480V

SECTION B

±100,000 sq. ft.

27” ceiling height

25’ x 50’ column spacing

6 dock high doors

1 drive-in door

800 amp/480V

•

•

RECAP:

SIOR Southeastern Regional Conference in Chattanooga, TN

Floyd H. Baldwin, SIOR and Drew C. Addison, SIOR recently attended the Society of Industrial and Office Realtors (SIOR) Southeastern Regional Conference in Chattanooga, TN.

Here are a few things we wanted to pass along from the event:

• Inflation is starting to slow down, largely due to energy costs lowering by approximately 12.5% since 2022 (Sage Economics).

• Cost of capital and lead times on materials continue to slow development, i.e. switchboards for electrical can take anywhere from 52-60 weeks (See adjacent page for full list of Current Lead Times).

• The Southeast is driving the majority of activity nationwide with the ports and labor in the SE Region being major drivers.

L to R: David Lockwood, SIOR President-Elect, Rob Binion, SIOR GA Chapter President, Patricia Loveall, SIOR President, Drew C. Addison, SIOR GA Chapter Vice President

L to R: Drew C. Addison, SIOR GA Chapter Vice President, and Floyd H. Baldwin, SIOR GA Chapter Past President

CURRENT MATERIAL LEAD TIMES (AUG 2023)

Information is Courtesy of ARCO Design/Build, a major sponsor of the SIOR SE Regional Conference.

±235,500 sq. ft. build-to-suit in Commerce, GA on ±29 acre site. Proposed features include 165 parking spaces, 70 trailer spaces, and 185' truck court. Other building specs TBD based on tenant needs. Only ±1 mile to I-85 via Exit 147. Located adjacent to SK Battery.

BUILD-TO-SUIT | FOR LEASE

±180,000 sq. ft. build-to-suit in Commerce, GA on ±16.5 acre site. Proposed features include 150 parking spaces and 135' truck court. Other building specs TBD based on tenant needs. Only ±1 mile to I-85 via Exit 147 and located adjacent to SK Battery.

975 GERRARD RD

Franklin County

±197,450 Sq. Ft. Freestanding Industrial Building For Sale In Lavonia, GA

±197,450 sq. ft. industrial building for sale on a ±17.19 acre site in Lavonia, GA. The building features ESFR sprinkler, 10 dock high doors, 2 drive-in doors, 28'32' ceiling height, 50' x 50' and 50' x 60' column spacing. Excellent location to service the growing I-85 corridor. Only ±2 miles to I-85.

Contact Floyd or Drew - ID #5882

1 BOSAL WAY

Franklin County

±167,594 Sq. Ft. Freestanding Industrial Building Available In Lavonia, GA

Contact Floyd or Drew - ID #6170

±167,594 sq. ft. freestanding facility available in Lavonia, GA on a ±29.35 acre site. Building features include 10 dock high doors (w/ mechanical levelers), 2 drive-in doors, 23'-31' ceiling height, 40' x 72' and 40' x 75' column spacing, and bridge crane access. Ample room for expansion, outdoor storage, or additional trailer parking. Close proximity to retail, medical, and industrial businesses along I-85.

±114,240 Sq. Ft. Industrial Building For Lease in Flowery Branch, GA

#378 4350

• ±52,737 sq. ft.industrial space for lease

• ±1,800 sq. ft. office area

• 26’-6” ceiling height

• 6” reinforced slab

• 2 drive-in doors (12’ x 14’)

• 9 dock high doors (9’ x 10’) / 5 with 40 lb. pit levelers

• 42’ x 50’ column spacing

• ESFR sprinkler

• LED lighting

• 480/240 V, 3 phase power

• Frontage / Visibility on Atlanta Highway

• Only ±0.6 miles to I-985 via Exit 17

5340 MCEVER RD UNITS A-D Hall County

±25,446 Sq. Ft. Industrial Space For Lease in Flowery Branch, GA Contact Drew or Floyd - ID #2068

• Located in Oakwood South Industrial Park

• ±1,037 sq. ft. of office space

• Lighting – Office T-12 / Warehouse LED

• 1 drive-in door (12’ x 14’)

• 9 dock high doors

• 18’ ceiling height

• 120’ truck court, 50’ concrete pad

• 200 amp/480V, 3-phase power

• Easy access to I-985 via the new interchange at Exit 14

• Close proximity to major industrial businesses in the growing I-85 corridor

• Located in Oakwood South Industrial Park

• ±1,823 sq. ft. of office space

• Lighting – Office T-8 / Warehouse

T-5

• 1 drive-in door (12’ x 14’)

• 10 dock high doors

• 22’ ceiling height

• 120’ truck court, 50’ concrete pad

• 2000 amp/480V, 3-phase power

• Easy access to I-985 via Exit 14

• Close proximity to major industrial businesses in the growing I-85 corridor

4360 AVERY DR Hall County

±25,000 Sq. Ft. Industrial Space For Lease in Flowery Branch, GA

Contact Drew or Floyd - ID #11239

±25,000 sq. ft. industrial space for lease in Flowery Branch, GA with ±450 sq. ft. office area, 22' clear ceiling height, 3 dock high doors, 1 drive-in door, 35' x 48' column spacing, wet sprinkler system (100% coverage), and 600 amp, 480/270 volts, 3-phase power. Convenient to I-985 via Exit 14 (less than one mile).

Great for warehouse or manufacturing.

±19,188 sq. ft. office/ warehouse / flex space for sale in Gainesville, GA comprised of (4) ±4,797 sq. ft. suites. Space is fully climate-controlled with a newly replaced 20-ton warehouse HVAC unit. 13'-16' clear ceiling height, 4 dock high doors, security system, and ample 3-phase power capability throughout the building. Easy access to I-985 at Exit 20.

0 ENTERPRISE DR

Jackson County

Build-to-Suit

±10,000 Sq. Ft. Single Tenant Facility For Lease in Pendergrass, GA

±10,000 sq. ft. build-to-suit single tenant facility for lease in Pendergrass, GA. Located in North Jefferson Business Park. Office is build-to-suit. Property features include 1 dock high door, 1 drive-in door, and 20' clear ceiling height. Excellent frontage on Hwy 129 with a traffic count of 16,500 cars per day. Only ±20 miles to I-985 and ±1.5 miles to I-85 at Exit 137. Great location with access to industrial market.

Contact Drew or Floyd - ID #10449

±2,808 sq. ft. office building for lease in Gainesville, GA with 10 private offices and fenced parking (20 parking spaces). Ideal headquarters for developer, architect, engineer, surveyor, or other industrial related companies. Visibility on White Sulphur Road / Ramsey Road. Located just off of Hwy 365 and only

±0.3 miles to I-985.

±2,286 sq. ft. building on ±3.764 acres for sale or lease in Jonesboro, GA with ±1,700 sq. ft. of office space and 1 drivein door. Site offers visibility from 3 road frontages and traffic count of 61,560 VPD (2022). Zoned Commercial and has a variety of potential uses.

±1,800 sq. ft. office/warehouse suite for lease in Pendergrass, GA with 3 private offices, 1 drive-in door, and 20' ceiling height in the warehouse area. The suite is located in a professional business park setting with good visibility from Hwy 129. Convenient to I-85 via Exit 137 in Pendergrass.

LOCATION DETAILS

• ± 0.25 mile to I-20, Exit 113

• ±1 mile to Hwy 441

• ±60 miles from Atlanta via I-20

• University of Georgia - ± 30 miles

• Georgia Tech - ± 61 miles

• Emory University - ± 58 miles

• Multiple Community/Tech Colleges within Driving Distance

• Less than 1 mile to Retail, Restaurants, & Shopping

• Atlanta / Hartsfield-Jackson Airport± 60 miles

• Augusta - ± 90 miles

• Athens - ± 25 miles

• Macon - ± 65 miles

Greenville, SC

±169 acres

New Rivian Plant Reynolds Plantation

Buford

±49.54 acres for sale in Commerce, GA with ±808 feet of frontage on I-85 and ±650 feet of frontage on Hwy 59. Excellent location for a regional distributor or manufacturer looking to service clients in the I-85 corridor. Close proximity to major industrial businesses and less than one mile to I-85 at Exit 154.

acres

±13 acres for sale in Lavonia, GA. Flat to gently rolling topography. 6" Water and 6" Sewer (City of Lavonia). Close proximity to retail, medical, and industrial businesses along I-85. Variety of potential uses including commercial, residential, or industrial. Only ±0.8 miles to I-85 at Exit 173.

*Owner is licensed in the State of Georgia (License #162356).

±13 acres

5573 RAFE CT SITE #16 Hall County

±7.81 acre site available in Oakwood, GA. Site is located in Oakwood South Industrial Park. Site provides privacy with easy interstate access. Only ±2 miles to I-985, Exit 14. Great option for end user.

±7.81 Acres For Sale in Oakwood, GA

Contact Drew or Floyd ID #11011

±7.81 acres

±6.86 acre site available in Oakwood, GA. Site is located in Oakwood South Industrial Park. Commercial site with high visibility on McEver Rd. Traffic Count of 9,500 VPD. Only ±1.5 miles to I-985, Exit 14. Great option for shallow bay or flex warehouse development in growing South Hall corridor.

Contact Drew or Floyd ID #11010

±6.86 acres

ALOHA WAY SITE #20 Hall County

±6.86 Acres

For Sale in Oakwood, GA

Our Mission

MAILING ADDRESS:

PO Box 364

Gainesville, GA 30503

770.536.6555

This information has been prepared by Industrial Properties Group, Inc. for the sole express use by clients of Industrial Properties Group. The information herein was obtained from sources deemed reliable but Industrial Properties Group does not guarantee accuracy.

770.536.6555, Ext. 222 Mobile: 770.287.5288

fbaldwin@ipgproperties.com

770.536.6555, Ext. 232 Mobile: 678.316.2409 daddison@ipgproperties.com

MISSION STATEMENT

770.536.6555, Ext. 223 Mobile: 706.474.2835

gbaldwin@ipgproperties.com

To provide the highest level of service for clients and customers in the purchase, sale, leasing and development of industrial real estate. Local Knowledge • Global Networks

www.ipgproperties.com

Floyd H. Baldwin, SIOR President

Drew C. Addison, SIOR Regional Sales Director

Gene Baldwin, Jr. Regional Sales Director

I-85 Corridor

I-20 Corridor