1 the bad a tlanta i ndustrial m arket. 2 3 4 5
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THE BAD
ATLANTA INDUSTRIAL MARKET
ATLANTA INDUSTRIAL MARKET
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ATLANTA INDUSTRIAL MARKET
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2001 2002 2003 2004 2005 2006 2007 2008 2009 20100
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BIG BOX AVAILABILITY
Available Square Feet
Mil
lion
s S
FATLANTA INDUSTRIAL MARKET
250,000 SF and Greater, at least 24’ ClearSource: Todd Barton CBRE
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ATLANTA INDUSTRIAL MARKET
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ATLANTA INDUSTRIAL MARKET
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THE UGLY
ATLANTA INDUSTRIAL MARKET
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ATLANTA INDUSTRIAL MARKET
ATLANTA INDUSTRIAL MARKET
NORTHEAST ATLANTA MARKET
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ATLANTA INDUSTRIAL MARKET
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ATLANTA INDUSTRIAL MARKET
ATLANTA INDUSTRIAL MARKET
SOUTH ATLANTA MARKET
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ATLANTA INDUSTRIAL MARKET
ATLANTA INDUSTRIAL MARKET
1 - 20 W / FULTON MARKET
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ATLANTA INDUSTRIAL MARKET
NORTHWEST ATLANTA MARKET
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ATLANTA INDUSTRIAL MARKET
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THE GOOD
ATLANTA INDUSTRIAL MARKET
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NATIONAL CLASS A INDUSTRIAL CAP RATES
Atlanta 7.25 - 7.75% Milwaukee 8.25 – 8.75%
Austin 7.50 – 8.00% Minneapolis 7.50 – 8.00%
Baltimore 7.25 – 7.75% Nashville 8.00 – 8.50%
Charlotte 7.75 – 8.25% New Jersey 7.00 – 7.50%
Chicago 6.25 – 6.75% No. California
6.90 – 7.50%
Columbus 7.75 – 8.25% Orlando 7.75 – 8.25%
Dallas 7.00 – 7.50% Philadelphia 7.25 – 7.75%
Denver 8.50 – 8.75% San Diego 7.00 – 7.50%
Harrisburg 7.50 – 8.00% Seattle 6.50 – 7.25%
Houston 7.00 – 7.50% South Florida
6.75 – 7.25%
Indianapolis
7.75 – 8.25% So. California
6.25 – 7.50%
Kansas City 8.00 – 8.50% St. Louis 8.00 – 8.50%
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10 industrial sales have closed through mid-year 2010 totaling 3.6 M SF vs. 6M SF thru mid 2009
$134M total volume down slightly year over year and 80% off 2007 peak
Avg. deal size fell to $13.4M from $23M in 2009
75% of deals completed in 2010 were completed in 2nd Quarter
91% of acquisitions in 2010 have been completed by either Advisors or REITS
Atlanta Industrial MarketInvestment Market
Property Product Type Sq. FtNo. of Bldgs. Seller
Sold Date Price Price PSF Comments
7030 Buford Highway
Bulk Distribution 96,160 1 American Realty
Advisors
05/10 $4,050,000 $42.12 Sold to Cabot Properties. One single tenant front loading bulk distribution building located in the Doraville Industrial submarket 100% leased to Beltmann thru 12/13. Sold on a 9.3% cap.
Hartman II Bulk Distribution 261,799 1 Opus Corp. 04/10 $10,800,000 $41.25 Sold to KBS Realty Advisors. One single tenant rear load distribution building located in the I-20 West submarket in Hartman Business Center. The building was 100% leased to Nexen Tire through June 2015. Constructed in 2007, 28' clear height, ESFR. Sold on a 7.75% cap rate.
ADC III Bulk Distribution 406,989 1 Principal 02/10 $11,750,000 $28.87 Sold to KTR Property Trust. One single tenant cross-dock bulk distribution building located east of Hartsfield-Jackson Atlanta International Airport. Built in 2002, 30’ clear, 402’ deep, ESFR, 175’ deep truck court. 100% leased to UPS Supply Chain Solutions thru 8/12, sold on a 9.32% going-in cap.
300 Terminus Bulk Distribution 330,000 1 First Industrial
U/C $14,520,000 $44.00 Under Contract - multi tenant front load 30' clear bulk distribution building located off I-20 West in Douglas Co., 185' truck court leased through 2019, under contract at 7.45% cap.
Suwanee Pointe
Light Distribution 231,696 2 Taylor & Mathis
U/C Low $60's PSF
Under Contract - two building multi tenant project located in Suwanee. Front load and rear load building with state of the art design, clear heights, ESFR and trailer storage. Under contract at 8% cap.
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Atlanta Industrial MarketInvestment Market