Page 1

on point Atlanta . Industrial Outlook . Q2 2012

Growth slows as hesitation enters the market Significant positive net absorption echoed from previous quarter’s leasing activity. Although, uncertainty slowed much of the second quarter’s forward progression. Total sales volume eclipsed the previous two quarters combined. Buyers and sellers inked deals on investment grade and value-add assets alike.


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 3

Atlanta industrial overview Economy Shifting into a lower gear, the local economy mirrored a second quarter national slowdown. US gross domestic product decelerated to 1.5 percent, compared to first quarter’s 2.0 percent growth, as both consumers and businesses reigned in spending. Political and economic uncertainty are mostly to blame. Unknowns contributing to the quarter’s air of hesitation were the presidential election, European debt crisis, Supreme Court’s health insurance verdict, Georgia’s transportation referendum, and federal funding for Savannah’s harbor expansion project. Leading indicators of industrial real estate demand such as consumer-confidence, expanded payrolls, and Georgia’s purchasing manager’s index have all signaled a drag on the recovery. Georgia Department of Labor data indicate Atlanta’s unemployment rate has held at a seasonally adjusted 8.9 percent, rather than continuing its decline. The state’s payrolls faired slightly worse at 9.0 percent. This uncertainty adds to Atlanta’s summertime headwinds.

Business Park are two of the few. Metro Atlanta’s fundamentals have continued to shift into balance and away from a tenant favorable environment, although more slowly than previous quarters would have led one to believe. As a response to previous deal volume, Atlanta’s total net absorption this period surpassed the previous quarter’s, indicating the most appetite for industrial space since mid 2011. With new construction activity muted, additional supply to the market is limited allowing vacancy rates to continue falling to pre-recession levels. Although overall average asking rental rates have remained relatively flat, landlords are pulling back slightly on concessions, increasing effective rates. Depending on one’s perspective, hesitation is not always bad news. Third party logistics providers, those which gravitate to big box submarkets such as the Northeast, Airport/South I-85 and I-20 West, have benefited from the market’s uncertainty. Firms are willing to accept higher marginal costs to ensure flexibility in their supply chain and avoid long term capital commitments. Newer well-located distribution and bulk warehouse space performed better than average as a result.

Despite the challenges felt worldwide, US exports rose by 5.3 percent. The Port of Savannah joined in with a 3.8 percent increase in total export volume over the previous quarter offering additional demand for the state’s distribution and warehouse space. Gas prices remained in check and the positive effects of an unusually warm winter led to additional residential construction, though not as much as during the first quarter. Market conditions Many decision makers participating in the market have chosen to wait for clarity before committing to long term capital expenditures. Issues such as the expiration of Bush-era tax cuts and unpredictable demand are adding to their hesitation. This period’s lease transaction volume is off significantly from previous quarter’s, and has proven less evenly distributed. Few mid-sized tenants have signed deals this quarter; Mobis Parts America at 1200 Oakley Industrial Boulevard for 301,152 square feet and Factory Direct Wholesale’s 119,900-square-foot deal at Berkeley Gwinnett

Trend spotlight… • Tenants participating in the food and beverage industry make up 25.0 percent of the requirements for space. With operations requiring conditioned space and custom design upgrades, these may become build-to-suit arrangements. • Leasing activity was poorly distributed with much of the volume collecting under 30,000 square feet. • Manufacturing space continues to diverge from the overall trends. Vacancy has increased again over last quarter and, with negative demand, more space is available for lease. • Rumors of speculative construction have been floated but IDI’s 653,484-square-foot Riverside Parkway distribution center remains the only building going vertical not pre-leased.

Total industrial market (owner occupied included) Supply Total stock (s.f.)

Construction Under construction (s.f.)

Rate

499,840,613

1,554,124

12.7%

Warehouse/distribution

429,811,123

1,554,124

Manufacturing

70,029,490

Total flex market

35,102,282

Total industrial market

Vacancy

Availability

Demand Q1 2012 net absorption (s.f.)

Pricing Average rental rate (nnn)

18.6%

2,488,640

$3.02

13.4%

19.9%

2,943,495

$3.07

0

7.9%

10.6%

-454,855

$2.69

0

20.2%

24.1%

-163,076

$7.62

Trend

Rate

Trend


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 4

Atlanta industrial overview, cont.

Manufacturing space, which makes up 13.5 percent of the total industrial inventory, is likely to continue to lose traction. One factor is that the buildings of yesterday oftentimes cannot accommodate new mechanized and sustainability requirements of today’s operations. Because of these capital intensive upgrades, many future facilities will likely be custom built. Similar trends can be seen with e-commerce fulfillment centers as with Bed Bath and Beyond’s 810,000-square-foot

distribution center in Jackson County. Large users will likely continue to benefit from the current market conditions, taking advantage of a wide variety of available space dispersed throughout the metro. Smaller tenants, less than 100,000 square feet, operate in a more volatile local environment and are more susceptible to swings in demand. These decision makers will likely wait for clarity before committing to new space, choosing instead to extend current agreements. Additional supply to the market will remain muted despite historically low interest rates and the state’s pro-business demeanor. However, an additional speculative building or two may appear on the radar before year’s end. Asking rents are stable in most of the market, though effective rents are beginning to move up in the Airport/South I-85 and Northeast submarkets. Incentives such as one month free rent per year of term are common in other poorer performing submarkets. Despite a belabored local recovery, this year is likely to contribute more growth than in previous years following the recession. Expect any major shifts in real estate fundamentals to occur post election.

Atlanta property clock

Peaking market

Falling market

Rising market

Bottoming market

Tenant leverage

Landlord leverage

Outlook Three years into the weakest recovery since World War II one thing is for certain, uncertainty is widespread. Unanswered political and economic questions remain from the health of Asia and the Eurozone, elections in Washington DC, Georgia’s transportation solutions, to our unemployed neighbors. The momentum felt in previous quarters has slowed sharply and hesitation will affect the remainder of 2012. Look to residential construction, particularly multifamily renovations, payroll additions, inventory levels and consumer spending as a bellwether for growth of Atlanta’s industrial real estate market.

I-20 East, South I-75 Chattahoochee, Central Atlanta North Central, Northwest, I-20 West Airport/South I-85, Northeast


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 5

Atlanta industrial overview, cont. Average rental rate

YTD net absorption

$5.00 $4.50

Northeast

$4.00

Airport/South I-85

$3.50

South I-75

$3.00

Northwest

$2.50

I-20 West

$2.00

I-20 East

$1.50

Central Atlanta

$1.00

North Central

$0.50

0 0, 00

0 1, 50

0, 00

0 1, 25

0, 00

00 0, 0

00 75

0, 0

00 50

0, 0

0 25

0 0, 00

0 -2 5

0, 00

0 -5 0

0, 00 -7 5

0, 00

1, 00

rth

-1 ,0 0

tr a l Ce n

ch ee No

Ch

att ah

oo

rth w

es t

a

ntr al Ce

No

At la

nt

as t rth e

No

Ea st I- 2 0

I-7 5 th

So u

W es t I- 2 0

-8 5 th I or t/S ou Ai rp

0

Chattahoochee

$0.00

Pricing trends

Demand trends

• Overall average asking rates remain relatively flat

• Absorption figures were strong this quarter in response to active leasing volume during previous quarters

• Effective rental rates are slowly rising in the more active submarkets • Warehouse/distribution rates dropped overall since the previous quarter • Submarkets which noticed a drop in warehouse/distribution rates include Airport/South I-85, Central Atlanta, I-20 East, North Central and the Northeast • Metro-wide manufacturing asking rents fell by $0.02 to the same level of a year ago

• Metro-wide, flex pricing increased again, this quarter by $0.20

• Airport/South I-85 posted a significant loss due primarily to Sears Logistics Services vacating 3700 Southside Industrial Way • Demand in the Northeast was overwhelmingly driven by ‘big box’ users rather than smaller ‘bread and butter’ tenants • The Northeast has had 9.0 straight quarters of positive net absorption totaling about 3.7 million square feet • Manufacturing demand trailed off considerably this quarter, although there are several build-tosuits in various construction phases • I-20 West put up its third quarter’s worth of positive net absorption


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 6

Atlanta leased industrial market [excluding owner occupied facilities] Methodology… The leased industrial sector excludes owner occupied product from the market’s data set, and provides a rental equivalent perspective for industrial buildings that are leased by tenants. Buildings can move into and out of this data set based upon being purchased or sold by a particular user.

Recent lease transactions Tenant name

Location

Submarket

Deal type

Size (s.f.)

New Breed Logistics

5400 Fulton Industrial Boulevard

I-20 West

New

439,000

FedEx

4644 SouthPark Boulevard

South I-75

New

401,600

Mobis Parts America

1200 Oakley Industrial Boulevard Airport/South I-85

New

301,152

Tenants in the market Tenant name

Submarket concentration

Size requirement (s.f.)

The Home Depot

South I-75

1,200,000

Restoration Hardware

Metro-wide

800,000 – 1,000,000

Ken’s Foods

South I-75

425,000

Sector trends… •

Tenants involved in the food and beverage industry are some of the most active in the market, making up approximately 25.0 percent of all known significant requirements. Manufacturing firms are choosing build-to-suit scenarios over renovating existing facilities because of a dwindling supply of suitable stock. Mitsubishi’s Satellite Boulevard facility and Toyota Industries’ new plant are two examples of the move toward custom construction. The Manufactures Alliance for Productivity Index corroborated Georgia’s Purchasing Manager’s Index data, noting that activity has slowed over the quarter. Inventories are sitting on shelves longer and the pipeline of new orders has diminished somewhat.

Total leased industrial market (excluding owner occupied facilities) Supply total stock (s.f.)

Vacancy rate

Availability rate

Demand Q2 2012 net absorption (s.f.)

Pricing Average rental rate (nnn)

337,026,288

17.7%

25.3%

1,992,572

$3.07

Warehouse/distribution

312,913,985

17.5%

25.4%

2,406,437

$3.09

Manufacturing

24,112,303

19.2%

24.7%

-413,865

$2.75

25,615,345

25.2%

29.3%

-139,139

$7.49

Total leased industrial market

Total leased flex market


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 7

Atlanta industrial capital markets overview Industrial properties continue to be a highly sought-after investment. Their stable cash flow and ability to maintain value over time corresponds with many investors’ goals. Those participating in Atlanta’s capital markets have leveraged the current slowdown to secure additional assets. This quarter LaSalle Investment Management acquired the Quaker Oats distribution center and Duke Realty selected Hartman Business Center V. These properties both sold at sub 7.0 percent cap rates, evidence that a thirst for investment grade property with credit tenants exists locally. Relative to other cities in the US, Atlanta’s stock is affordable. It remains an option for investors priced out of other more costly markets where attainable top-quality properties are scarce at reasonable prices. A dichotomy exists, however, between local core assets and other classes of industrial property. Older functionally obsolete warehouse and distribution facilities are not as able to command stable

Atlanta select sales I-20 West 747 Douglas Hill Road

rental income and modern cost efficiencies needed to justify lower cap rates. Price per square foot is often used instead as a determinate of value, due also in part to Atlanta’s relatively high vacancy rate in the class B/C segment. Overall sales volume of this property has declined since 2011, but so to have the number of delinquencies. It appears that much of the volatility seen in previous years was alleviated by recent modifications and value-add plays. This is a strong indication that Atlanta’s non-core asset capital market is stabilizing. Expect REITS to continue with their strategy of disposing poorer preforming stock in favor of securing more durable cash flow and better located real estate. Investors with their ear to the ground will continue taking advantage of the hesitation in the market to pick up property at a discount. Cash rich firms may also do the same. Atlanta’s recovery is still fragile and susceptible to major shocks. Barring any large scale economic disruption on the world stage and evaporation of positive GDP growth, albeit slowing, healing of the metro’s capital markets should continue into next year.

Average sales price (p.s.f.) and cap rates by year (warehouse, distribution & manufacturing only) RBA Buyer Seller Price (p.s.f.) Date sold

I-20 West 7545 Hartman Industrial Way RBA Buyer Seller Price (p.s.f.) Date sold Airport/I-85 South 7320 Oakley Industrial Boulevard RBA Buyer Seller Price (p.s.f.) Date sold

913,000 s.f. LaSalle Investment Management Stockbridge Capital Group $43.81 April 2012

569,673 s.f. Duke Realty The Opus Group $46.25 June 2012

400,000 s.f. Exeter Property Group Exel $20.28 May 2012

$60

Avg. price (p.s.f.)

10%

Cap rate

9% $50

8% 7%

$40

6% $30

5% 4%

$20

3%

2%

$10

1% $0

2007

2008

2009

2010

2011

2012

0%


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 8

Appendix Statistics Large block availabilities Construction map Contacts


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 9

Atlanta industrial market statistics Total inventory (s.f.)

Direct vacancy (%)

Total vacancy (%)

Direct availability (%)

Total availability (%)

Direct net absorption (s.f.)

YTD 2012 direct net absorption (s.f.)

Total net absorption (s.f.)

YTD 2012 total net absorption (s.f.)

Average direct asking rent ($ p.s.f.)

Average total asking rent ($ p.s.f.)

Under construction (s.f.)

YTD completions (s.f.)

Warehouse / Distribution

80,223,677

12.1%

13.2%

16.3%

18.3%

-873,157

-464,258

-809,127

-433,351

$2.86

$2.79

0

0

Manufacturing

13,900,039

6.5%

6.5%

9.2%

9.2%

18,640

18,640

18,640

18,640

$1.99

$1.99

0

0

Total industrial

94,123,716

11.3%

12.2%

15.2%

17.0%

-854,517

-445,618

-790,487

-414,711

$2.78

$2.67

0

0

1,433,921

11.7%

12.8%

16.7%

17.8%

-24,525

-25,458

-24,525

-19,538

$8.39

$8.39

0

0

Warehouse / Distribution

7,876,815

7.8%

7.8%

15.2%

15.9%

64,400

-14,480

64,400

-14,480

$3.37

$3.24

0

0

Manufacturing

2,544,840

10.8%

10.8%

25.6%

25.6%

0

0

0

0

$3.00

$3.00

0

0

10,421,655

8.5%

8.5%

17.8%

18.3%

64,400

-14,480

64,400

-14,480

$3.24

$3.18

0

0

1,667,441

8.9%

8.9%

13.0%

13.0%

-24,135

14,144

-24,135

14,144

$14.48

$14.48

0

0

11,206,182

10.0%

10.0%

14.5%

14.5%

97,027

-90,297

97,027

-90,297

$4.13

$4.13

0

0

3,719,964

3.3%

3.3%

3.3%

3.3%

0

0

0

0

-

-

0

0

14,926,146

8.4%

8.4%

10.9%

10.9%

97,027

-90,297

97,027

-90,297

$4.08

$4.13

0

0

1,329,961

10.2%

10.2%

13.7%

13.7%

-5,587

-4,487

-5,587

-4,487

$9.04

$8.90

0

0

41,263,629

13.8%

13.8%

17.5%

17.7%

383,708

489,234

398,108

503,634

$2.81

$2.81

0

0

9,178,416

10.2%

10.2%

11.5%

11.5%

-157,110

-167,110

-157,110

-167,110

$3.00

$3.00

0

0

50,442,045

13.1%

13.1%

16.4%

16.6%

226,598

322,124

240,998

336,524

$2.83

$2.84

0

0

3,184,869

20.0%

20.6%

23.2%

23.8%

15,545

29,010

-3,879

9,586

$4.63

$4.63

0

0

Submarket

Airport/South I-85

Flex / R&D

Central Atlanta

Total industrial Flex / R&D

Chattahoochee Warehouse / Distribution Manufacturing Total industrial Flex / R&D

I-20 East Warehouse / Distribution Manufacturing Total industrial Flex / R&D

Vacancy: Physically vacant space. Total Vacancy includes both direct and sublease space. Availability: Space being marketed for lease by owner or sublessor, regardless of occupancy. Total Availability includes both direct and sublease space. Net Absorption: The net change in occupancy over a measured period of time. Average Asking Rent: Direct monthly values presented on a NNN basis, then weighted by the amount of direct available space in a building. Statistics reflect the total industrial market, including owner occupied facilities


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 10

Atlanta industrial market statistics, cont. Submarket

Total inventory (s.f.)

Direct vacancy (%)

Total vacancy (%)

Direct availability (%)

Total availability (%)

Direct net absorption (s.f.)

YTD 2012 direct net absorption (s.f.)

Total net absorption (s.f.)

YTD 2012 total net absorption (s.f.)

Average direct asking rent ($ p.s.f.)

Average total asking rent ($ p.s.f.)

Under construction (s.f.)

YTD completions (s.f.)

76,930,038

13.9%

14.2%

24.1%

25.9%

1,228,967

1,365,769

1,228,967

1,366,798

$2.87

$2.83

653,484

0

7,180,841

6.8%

6.8%

14.2%

14.2%

0

0

0

0

$1.88

$1.88

0

0

84,110,879

13.3%

13.6%

23.2%

24.9%

1,228,967

1,365,769

1,228,967

1,366,798

$2.82

$2.75

653,484

0

1,933,467

15.6%

15.6%

15.7%

15.7%

11,717

-19,856

11,717

-19,856

$7.06

$7.06

0

0

12,749,485

11.3%

11.6%

15.3%

15.6%

-35,821

-86,297

-23,027

-113,869

$4.92

$4.88

0

0

1,745,554

2.6%

2.6%

6.1%

6.1%

26,890

26,890

26,890

26,890

$2.50

$2.50

0

0

14,495,039

10.2%

10.5%

14.2%

14.5%

-8,931

-59,407

3,863

-86,979

$4.80

$4.59

0

0

5,901,410

27.1%

27.3%

29.8%

29.9%

-57,346

-113,516

-54,129

-110,299

$9.64

$9.64

0

0

126,490,493

13.0%

13.2%

16.3%

18.1%

1,567,320

1,644,292

1,622,680

1,742,348

$3.44

$3.44

0

0

19,806,620

6.4%

6.4%

7.2%

7.2%

-489,525

-218,435

-489,525

-218,435

$2.78

$2.78

0

0

146,297,113

12.1%

12.3%

15.1%

16.7%

1,077,795

1,425,857

1,133,155

1,523,913

$3.40

$3.35

0

0

11,798,021

23.3%

24.1%

26.2%

27.2%

-50,791

-102,470

-23,652

-101,134

$6.62

$6.74

0

0

38,714,475

13.1%

13.3%

15.6%

15.9%

252,800

331,249

246,352

350,083

$3.84

$3.82

0

0

5,697,096

10.5%

11.5%

13.2%

14.2%

0

42,923

0

42,923

$2.37

$2.37

0

0

44,411,571

12.8%

13.0%

15.3%

15.7%

252,800

374,172

246,352

393,006

$3.68

$3.63

0

0

6,995,365

14.4%

15.9%

19.3%

21.5%

-49,923

-69,608

-38,886

-65,858

$7.76

$7.73

0

0

I-20 West Warehouse / Distribution Manufacturing Total industrial Flex / R&D

North Central Warehouse / Distribution Manufacturing

Total industrial Flex / R&D

Northeast Warehouse / Distribution Manufacturing Total industrial Flex / R&D

Northwest Warehouse / Distribution Manufacturing Total industrial Flex / R&D

Vacancy: Physically vacant space. Total Vacancy includes both direct and sublease space. Availability: Space being marketed for lease by owner or sublessor, regardless of occupancy. Total Availability includes both direct and sublease space. Net Absorption: The net change in occupancy over a measured period of time. Average Asking Rent: Direct monthly values presented on a NNN basis, then weighted by the amount of direct available space in a building. Statistics reflect the total industrial market, including owner occupied facilities.


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 11

Atlanta industrial market statistics, cont. Submarket

Total inventory (s.f.)

Direct vacancy (%)

Total vacancy (%)

Direct availability (%)

Total availability (%)

Direct net absorption (s.f.)

YTD 2012 direct net absorption (s.f.)

Total net absorption (s.f.)

YTD 2012 total net absorption (s.f.)

Average direct asking rent ($ p.s.f.)

Average total asking rent ($ p.s.f.)

Under construction (s.f.)

YTD completions (s.f.)

34,356,349

12.2%

16.0%

20.8%

27.5%

268,990

471,778

118,115

309,703

$2.78

$2.68

900,640

0

6,256,120

14.0%

14.0%

15.4%

15.4%

146,250

146,250

146,250

146,250

$3.27

$3.27

0

0

40,612,469

12.5%

15.6%

20.0%

25.7%

415,240

618,028

264,365

455,953

$2.84

$2.77

900,640

0

857,827

9.8%

9.8%

28.7%

28.7%

0

0

0

0

$3.50

$3.50

0

0

429,811,123

12.8%

13.4%

18.0%

19.9%

2,954,234

3,646,990

2,943,495

3,620,569

$3.13

$3.07

1,554,124

0

70,029,490

7.9%

7.9%

10.5%

10.6%

-454,855

-150,842

-454,855

-150,842

$2.69

$2.69

0

0

499,840,613

12.1%

12.7%

17.0%

18.6%

2,499,379

3,496,148

2,488,640

3,469,727

$3.15

$3.02

1,554,124

0

35,102,282

19.5%

20.2%

23.2%

24.1%

-185,045

-286,321

-163,076

-297,442

$7.62

$7.62

0

0

South I-75 Warehouse / Distribution Manufacturing Total industrial Flex / R&D

Metro Warehouse / Distribution Manufacturing Total industrial Flex / R&D

Vacancy: Physically vacant space. Total Vacancy includes both direct and sublease space. Availability: Space being marketed for lease by owner or sublessor, regardless of occupancy. Total Availability includes both direct and sublease space. Net Absorption: The net change in occupancy over a measured period of time. Average Asking Rent: Direct monthly values presented on a NNN basis, then weighted by the amount of direct available space in a building. Statistics reflect the total industrial market, including owner occupied facilities.


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 12

Atlanta industrial buildings with large block availabilities Warehouse Warehouse Warehouse Distribution Warehouse Manufacturing

Warehouse

Submarkets with no large block availabilities

Warehouse

Warehouse

Warehouse

Distribution

Warehouse

Distribution

Manufacturing

Warehouse

Distribution

Chattahoochee

Airport/South I-85

I-20 East

North Central

12 Blocks

4 Blocks

Northwest

5,682,543 SF

1,503,527 SF

6855 Shannon Parkway-(W)-744,000

7135 Southlake Parkway-(W)-289,343

1335 Industrial Boulevard NW-(M)-531,644

3201 Centre Parkway-(W)-607,650

5010 Terminus Drive-(W)-268,567

2001 Deere Drive-(W)-378,883

5005 Terminus Drive-(W)-569,918

1557 Saint Joseph Avenue-(W)-251,764

16126 Alcovy Road-(D)-300,000

2110 Lawrence Street-(D)-550,000 4300 S. Fulton Parkway-(W)-471,000 185 Southside Industrial Parkway-(W)-453,587 4575 Lake Mirror Place-(W)-432,500 3700 Southside Industrial Way-(D)-402,554 1000 W. Main Street-(M)-351,500

Contiguous blocks greater than 250,000 square feet; (M): Manufacturing; (D): Distribution; (F): Flex; (W): Warehouse

4650 Hugh Howell Road-(D)-293,000


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 13

Atlanta industrial buildings with large block availabilities, cont. Distribution Distribution

Warehouse Warehouse

Warehouse

Distribution

Distribution

Warehouse

Warehouse

Warehouse

Warehouse

Warehouse

Distribution

Warehouse

Warehouse

Manufacturing

Warehouse

Warehouse

Warehouse

Distribution

Distribution

Manufacturing

Warehouse

Manufacturing

Warehouse

Manufacturing

I-20 West

Northeast

Central Atlanta

14 Blocks

11 Blocks

1 Block

6,195,940 SF

6,726,930 SF

287,000 SF 1200 White Street SW-(M)-287,000

7705 Staples Drive–(W)–585,000

757 Douglas Hill Road-(W)-295,768

1187 E Hightower Trail-(D)-1,370,000

420 Lee Industrial Boulevard–(D)–561,600

6300 Boad Rock Road-(W)-292,310

1523 Steve Reynolds Parkway–(D)–962,280

6150 Xavier Drive SW–(W)–542,432

1600 Distribution Court–(W)–258,034

2500 W Park Drive-(W)-758,488

1265 Terminus Drive–(W)–527,000

7905 Troon Circle-(W)-254,000

6205 Best Friend Road–(W)–735,233

3710 Atlanta Industrial Parkway-(W)-446,664

5305 Tulane Drive SW–(D)–253,738

596 Bonnie Valentine Way–(D)–583,525

767 Douglas Hill Road-(W)-342,217

125 Pequanoc Drive–(M)–250,000

1111 Broadway Avenue-(W)-544,838

6021 Greensboro Dr SW–(D)–332,219

350 Raco Parkway–(D)–486,000

6355 Boat Rock Blvd SW–(W)–296,260

150 W Vine Street-(M)-411,412 2800 Sawnee Avenue-(W)-302,600 1215 Palmour Drive-(M)-296,000 3312 N Berkeley Lake Road NW-(W)-276,554

Contiguous blocks greater than 250,000 square feet; (M): Manufacturing; (D): Distribution; (F): Flex; (W): Warehouse


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 14

Atlanta industrial buildings with large block availabilities, cont. Warehouse

Warehouse Distribution

Warehouse

Manufacturing

Warehouse

Warehouse

Warehouse

Warehouse

Warehouse

Warehouse

Distribution

Warehouse

Warehouse

South I-75 14 Blocks 7,055,771 SF 201 Greenwood Court–(W)–800,000

3060 SouthPark Boulevard-(W)–411,000

150 Greenwood Industrial Court–(W)–600,000

200 Eagles Landing Parkway–(W)–400,000

201 King Mill Court–(D)–570,000

197 King Mill Road–(W)–314,755

375 Airport Road–(M)–509,000

100 Interstate South Drive-(W)-275,000

220-230 Greenwood Court–(W)–504,000

100 Constitution Drive–(D)–273,400

237 Greenwood Industrial Court–(W)–455,000

3000 SouthPark Boulevard-(W)-273,200

250 Declaration Drive–(W)–429,600 210 Interstate South Drive–(W)–428,160

Contiguous blocks greater than 250,000 square feet; (M): Manufacturing; (D): Distribution; (F): Flex; (W): Warehouse


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 15

Atlanta construction map Construction completed – year to date 1

FedEx Distribution Center – Atlantic Boulevard, delivered Q1 2012

2

Marten Transportation – Stone Mountain Industrial Park,

delivered Q1 2012 5

3

6

Construction in progress 3

IDI Speculative Building – Riverside Parkway, est. delivery Q4 2012

1

4 Georgia Pacific Build-to-Suit – Westridge Parkway, 2

est. delivery Q4 2012 5 Mitsubishi Build-to-Suit – Satellite Boulevard,

3

est. delivery Q4 2012

7

6 Toyota Industries Plant – Bonnie Valentine Parkway

est. delivery Q1 2013 7 Kuehne + Nagel Building – Camp Creek Business Center,

est. delivery Q2 2013 4


Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q2 2012 16

Atlanta contacts

Research Ryan Harchar Research Analyst Americas Industrial

Alan Clayton Vice President +1 404 995 2460

Scott Quesinberry Vice President +1 404 995 6590

alan.clayton@am.jll.com

scott.quesinberry@am.jll.com

Ray Dankberg

Ryan Wood

Mike Clemens Vice President, CPIM LEED GA +1 404 995 2180 mike.clemens@am.jll.com

+1 404 995 6509 ryan.harchar@am.jll.com Sarah Dasher Research Manager +1 404 995 6531 sarah.dasher@am.jll.com Brokerage Steve Grable Senior Vice President, SIOR +1 404 995 2455 steve.grable@am.jll.com Bill Kee Senior Vice President +1 404 995 2244 bill.kee@am.jll.com Chris Tomasulo Senior Vice President +1 404 995 2462 chris.tomasulo@am.jll.com

Vice President +1 404 995 2415

Senior Associate +1 404 995 2280

ray.dankberg@am.jll.com

ryan.wood@am.jll.com

Rodney Davidson

PDS

Vice President

Ethan Milley

+1 404 995 6410

Managing Director

rodney.davidson@am.jll.com Reed Davis Associate +1 404 995 2227 reed.davis@am.jll.com Bob Robers Vice President +1 404 995 2445 bob.robers@am.jll.com Paul Roeser Vice President

+1 404 995 2456 paul.roeser@am.jll.com

+1 404 995 2188 ethan.milley@am.jll.com

Tom Simpson Vice President, LEED AP +1 404 995 6349 tom.simpson@am.jll.com Property Management Linda Bolan Managing Director +1 404 585 4506 linda.bolan@am.jll.com

Brian Terrell Managing Director +1 404 995 2413 brian.terrell@am.jll.com Tripp Eskridge Senior Vice President, LEED GA +1 404 995 2466 tripp.eskridge@am.jll.com

BEI Amy Gerber

Executive Vice President +1 404 995 2447 amy.gerber@am.jll.com


About Jones Lang LaSalle Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of more than $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $47.2 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com. Jones Lang LaSalle Research Jones Lang LaSalle’s research team delivers intelligence, analysis, and insight through market-leading reports and services that illuminate today’s commercial real estate dynamics and identify tomorrow’s challenges and opportunities. Our 347 professional researchers track and analyze economic and property trends and forecast future conditions in over 60 countries, producing unrivalled local and global perspectives. Our research and expertise, fueled by real-time information and innovative thinking around the world, creates a competitive advantage for our clients and drives successful strategies and optimal real estate decisions.

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Atlanta Industrial Outlook | Q2 2012 | JLL  

Atlanta Industrial Outlook

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