Industrial Market Report: Summer 2023 by skcr

NET

INDUSTRIAL MARKET: SUMMER 2023

The industrial hot streak is starting to fade. After 12 straight quarters of industrial net absorption growth, the Atlanta market pulled back in Q2 with -451,261 SF, and the vacancy rate rose 70 basis points. It also marked the eighth straight quarter with over 30 MSF of space under construction, while preleasing fell to 24%, one of the lowest rates since the start of the pandemic. Rental rates continue to increase, rising 3% this quarter and up 96% since Q4 2019. The vacancy rate will continue to grow through the rest of 2023. SK is projecting it will reach 8% by the end of the year.

& VACANCY RATE

ATLANTA

VACANT SF BROADRANGE LOGISTICS 7634 HWY 140 - 691,667 SF GREAT VALLEY #200 100 LOGISTICS PKY - 821,844 SF GREAT VALLEY #100 200 LOGISTICS PKY - $68.4M 41.8 MSF TOP LEASE TOP DELIVERABLE TOP SALE % VACANT 5.5% QRT NET ABSORPTION (451,261 SF) DELIVERED SF 4.6 MSF UNDER CONS. SF 38.1 MSF QUOTED RATES SALES PRICE $8.60 $135 / PSF

0% 1% 2% 3% 5% 6% 7% 4% 8% 50 KSF 40 KSF 30 KSF 20 KSF 10 KSF - KSF 2018 2019 2020 2021 2022 2023 YTD NET ABSORPTION NET DELIVERIES VACANCY RATES

ABSORPTION,

DELIVERIES,

ABOUT SKCR OCCUPIED VS VACANT

SK Commercial Realty is a full-service real estate brokerage selling, buying, and leasing office, industrial, medical, retail, and land properties. We offer project consulting services, property management, accounting, and investment services. SKCR is committed to our clients, partners and employees, our industry, and the community.

We have been providing effective real estate solutions to clients throughout the southeast since 1985. Each transaction is treated with the same level of care and attention no matter the size or type, and each is managed by an experienced and knowledgeable team of brokers. SKCR has developed and acquired over 5,000,000 square feet of property, and has also grown to accomodate over 25 brokers and a team of nearly 20 staffed accountants, managers, architects, marketing professionals, and leadership roles. SKCR has won the Cobb County Small Business of the Year award several times, making them the leading independent commercial real estate brokerage in the county.

Learn more by visiting www.skcr.com or calling 404.252.1200.

Source: CoStar data comprised of metro Atlanta industrial market buildings 20,000 RSF and greater. Report by Scott Crooks and Claire Blevins. Copyright 2023. Submarket Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Central Atlanta & Chattahoochee 22,264,372 1,437,738 6.5% (127,380) - - $13.68 GA 400 North 27,950,043 1,461,449 5.2% 38,236 359,202 196,252 $13.06 I-985 & North I-85 79,114,483 7,864,050 9.9% 330,545 1,015,069 9,745,356 $7.41 I-85 DeKalb & Gwinnett 140,587,991 4,040,408 2.9% 457,363 140,830 1,436,137 $10.03 I-75 North 81,995,316 5,118,190 6.2% (394,643) 1,128,222 7,239,125 $9.04 I-20 East 73,168,735 3,643,759 5.0% (223,268) 163,035 3,591,864 $7.69 I-75 & I-85 South 225,707,865 11,460,474 5.1% (88,199) 486,602 11,871,749 $8.12 I-20 West 117,227,322 6,851,582 5.8% (443,915) 1,268,860 4,011,195 $8.17 Totals 768,016,127 41,877,650 5.5% (451,261) 4,561,820 38,091,678 $8.60 Northern Submarkets Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Ware/Dist >1995 179,308,261 12,307,037 6.9% 500,224 2,643,323 18,578,870 $8.24 Ware/Dist <1995 141,336,421 5,752,704 4.1% (219,812) - - $9.92 Flex Product 31,267,523 1,862,094 6.0% 23,709 - 38,000 $13.78 Northern Totals 351,912,205 19,921,835 5.7% 304,121 2,643,323 18,616,870 $9.19 Southern Submarkets Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Ware/Dist >1995 235,717,130 13,031,991 5.5% 297,417 1,918,497 19,474,808 $8.90 Ware/Dist <1995 169,081,242 8,415,170 5.0% (918,253) - - $6.46 Flex Product 11,305,550 508,654 4.5% (134,546) - - $12.53 Southern Totals 416,103,922 21,955,815 5.3% (755,382) 1,918,497 19,474,808 $8.06 50M (6.5%) (5.2%) (5.0%) (9.9%) (6.2%) 150M OCCUPIED SF VACANT SF 100M 200M 250M CENTRALATL& CHATTAHOOCHEE GA400N I-985&N I-85 I-75N I-85DEKALD&GWINNETTI-75&I-85S I-20E (2.9%) (5.1%)