IPG E-Market Report | July 2023

M ARKET R EPORT

A Guide to Industrial Real Estate in Northeast Georgia

1 Bosal Way | Franklin County

±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. Contact Drew, Floyd, or Griffin - #6170

LOCAL KNOWLEDGE GLOBAL NETWORKS

I-85 Market Recap

(For period changes Q2 2022 - Q2 2023 est.)

Data reflects information related to Industrial & Flex Space

Inventory SF

300M

Prior Period 289M

(+3.2%)

Under Construction SF 10.2M

(-36.1%)

Prior Period 15.9M

12 Mo Net Absorption SF

6.5M

Prior Period 11.4M (-42.5%)

Vacancy Rate

4.4%

Prior Period 3.0% (+1.4%)

Market Rent Per SF

$8.70

Prior Period $8.03

(+8.3%)

Market Sale Price Per SF $116

Prior Period $104 (+13.9%)

Market Cap Rate

6.1% (-0%)

Prior Period 6.1%

2) Under Construction numbers are beginning to stabilize but still remain high compared to the previous 10 years. Under Construction Average SF declined.

Data reflects information for Industrial & Flex Space in Industrial Properties Group, Inc. market (I-85 and I-20). See page 2-3 for counties included in this research.

Information and details contained herein have been obtained from third-party sources believed to be reliable; however, Industrial Properties Group has not independently verified its accuracy. Interested parties should perform their own due diligence regarding the accuracy of information. Third-party data source: CoStar Group, Inc.

3) Rates in Sales and Leasing continued to increase. Growth rates for both are forecast to taper.

Sales Past Year

Sales Volume & Market Sale Price Per SF

±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.

±235,500 sq.

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.

AGENT INTERVIEW

Q: How do you feel about the current health of the Industrial Real Estate market?

FLOYD: We're definitely seeing a slowdown in the market. Many investors are beginning to pull back and look at future projects with a wait and see attitude. However, at our firm, we are still seeing a lot of activity and steady inquiries, maybe not at the same levels we have over the last 24 months, but still healthy.

In sailing, the shortest way through a squall is to just push through. I think it's important for the market to not overreact or overcorrect just because of uncertainty. Historically, we can be in a recession before we realize it, but we are also out of it before the data reports it.

DREW: We've seen a drop in the number of properties sold, an increase in vacancy, and so on, but all of that is being compared to the last couple of years where

Floyd H. Baldwin, SIOR

Drew C. Addison, SIOR

we experienced generational type growth. A steady climb compared to a rocket is not a bad thing. Our firm’s area in the Northeast Georgia region is also continuing to grow and expand across more than just the industrial market. Gainesville’s residential market was just announced as the #1 Hottest Housing Market in the nation by Bankrate.com based on measures like population and job growth. We can also look at things like the inland port commitment, the huge investments being made in healthcare in the region, and the overall quality of life with Lake Lanier and Lake Hartwell as major contributors. All of these things influence industrial real estate and will help maintain a healthy market.

Q: What do you think is driving the market to remain stable?

FLOYD: The state of Georgia is being very aggressive with recruitment of industries. The electric vehicle and

automotive manufacturing industry is going to drive our market through this next cycle. We will also continue to see affiliated manufacturers and suppliers of the auto industry locate in the state.

In addition, private equity markets are still looking for deals. We have seen a lot of activity from investors looking in more tertiary markets, which is proof that even in a market that's not booming like the last two years, investors still need places to put their dollars.

DREW: Location is a big driver. Georgia remains one of the top business friendly states and our local and state leadership does a great job supporting new investment. We also have a large regional base of existing manufacturers from all across the world. This, along with the growing "Battery Belt" and EV market, has already set the stage for Georgia's continued industrial growth.

Transportation is a major factor, too. We're going to start to see a lot of continued activity spread around the ports in the next several years.

Q: What are some trends people should be watching?

FLOYD: I think we will continue to see substantial growth through the Northeast Georgia market. However, because of manufacturing, I think we're also going to see a cutback in ecommerce industrial activity, specifically warehousing, which brought us out of the last recession.

In other words, pre-Covid ecommerce was about 14-16% of the market with about 5% annual growth. During Covid, they rose to about 30-40% and the distribution centers were built to accommodate that growth. But now that we are in what we can call post-Covid, we are seeing consumers return to the

store and ecommerce growth is back to normal patterns. Another major trend to watch is artificial intelligence (AI). I think it's going to happen quickly. I'm interested to see where AI falls into the equation and what its future applications will be.

DREW: Again, we're seeing what's been coined as the "Battery Belt" develop heavily in the Southeast and Northeast in the U.S. The EV industry is still in its early stages, and I think we're going to continue seeing a lot of residual activity in that market.

Q: What improvements or actions could take place to help stabilize the market?

FLOYD: Economic policy to assist manufacturers, reduced energy costs, and continued workforce development.

DREW: We are starting to see developers and prospects say no to new projects based on rates and pro forma. At some point, we need stabilization as we enter more normal market conditions. This would mean that construction pricing, lease rates, sales pricing, and interest rates balance out. While I don't think lease rates and pricing are going to go back to where they were prepandemic, finding a balance of steady rent growth versus the sharp price jumps we've seen will allow "Mom and Pop" purchasers to re-enter the buying pool for business growth. We don't need major shifts in any one direction, just more predictable growth.

RIDGEWAY 85 LOGISTICS CENTER

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 the new $2 billion SK Battery 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).

1532 Ridgeway Church Rd Jackson County FOR LEASE

Contact Floyd or Drew - ID #10786

±114,240 sq. ft. industrial building for lease in Flowery Branch, GA. Building features ±2,282 sq. ft. of office space, 22' clear ceiling height, 9 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. Less than one mile to I-985 via Exit 14. Great for warehouse or manufacturing.

Contact Floyd, Drew, or Griffin

ID #378

4350 AVERY DR Hall County

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

FAST FACTS

FACT: Interest rates are high when compared to the last 10-year term.

FACT: There is a lot of perceived uncertainty in the current real estate market.

FACT: Ports across the state of Georgia are increasing activity.

FACT: Ecommerce distribution is slowing down during what we can now call post-pandemic but is still exploding in its infancy.

FACT: There is still a shortage in manufacturing space.

FACT: Private equity markets are still looking for places to put their dollars.

1228 MEMORIAL DR

Stephens County

Two industrial facilities for sale or lease (total of 45,000 sq. ft.) on a ±5.62 acre site in Stephens County, GA. Both buildings are clear span and have ample room for outside storage and/or parking. Easy access to Hwy 17 and I-85. Great for light manufacturing or distribution.

Contact Drew, Griffin, or Floyd ID #1581 & #1582

Building 100 is ±30,000 sq. ft. with 18’ ceiling height, 2 dock high doors, 7 drive-in doors, a ±600 sq. ft. office area and heavy power.

Building 200 is ±15,000 sq. ft. and offers 18’ ceiling height, 2 dock high doors (10’ x 10’) and 1 drive-in door (12’ x 14’).

±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, Griffin, 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.

Sq. Ft.

Building

• ± 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

Madison

Athens

Atlanta

Gainesville

Lake Oconee

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.

±49.54 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

±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. Contact Drew, Floyd, or Griffin ID #11011

±7.81 acres ±7.81 Acres For Sale in Oakwood, GA

±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, Floyd, or Griffin ID #11010

±6.86 acres

ALOHA WAY

SITE #20 Hall County

±6.86 Acres

For Sale in Oakwood, GA

±2.55 acres

192 INDUSTRIAL PARK DRIVE Gwinnett County

±2.55 Acres For Sale in Lawrenceville, GA Contact Griffin, Drew, or Floyd

ID #11174

±2.55 acre site for sale in Lawrenceville, GA. Zoned Industrial with approved special use permit for outside storage. Utilities available on site. Great location with major industrial businesses in surrounding area. Easy access to Hwy 316 and less than one mile to Gwinnett County Airport. Only ±8.5 miles to I-85 at Exit 104.

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

Regional

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

770.536.6555, Ext. 233 Mobile: 678.936.3289 gprice@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

Sales Director

Gene Baldwin, Jr.

Regional Sales Director

Griffin Price

Regional Sales Associate

I-85 Corridor

I-20 Corridor