atlanta industrial market second quarter 2004 atlanta industrial market second quarter 2004
TRANSCRIPT
The Atlanta Industrial MarketThe Atlanta Industrial Market
• PinPointPinPointsmsm TechnologyTechnology– 12 market areas12 market areas– 16,482 users16,482 users– 9,898 buildings9,898 buildings– 438 million sq. 438 million sq.
ft. ft. of distributionof distribution
• PinPointPinPointsmsm TechnologyTechnology– 12 market areas12 market areas– 16,482 users16,482 users– 9,898 buildings9,898 buildings– 438 million sq. 438 million sq.
ft. ft. of distributionof distribution
Behind KIR Team Behind KIR Team
• Twenty four years• PinPoint Database
– Custom designed– Inventory every quarter– Shared information by everyone
• Atlanta’s industrial experts – 3,428 transactions since 1995– 48.9 million sq. ft. of Leases and Sales – 3,601 acres of land
• Twenty four years• PinPoint Database
– Custom designed– Inventory every quarter– Shared information by everyone
• Atlanta’s industrial experts – 3,428 transactions since 1995– 48.9 million sq. ft. of Leases and Sales – 3,601 acres of land
Defining TermsDefining Terms
• Availability – Vacant or available space
• Activity – Square feet of signed leases
• Net Absorption – Net results of activity (calculated
by spaces vacated and spaces leased)
• Deals – Actual number of transactions
• Availability – Vacant or available space
• Activity – Square feet of signed leases
• Net Absorption – Net results of activity (calculated
by spaces vacated and spaces leased)
• Deals – Actual number of transactions
Market Inventory: 1995-2004Market Inventory: 1995-2004
1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-21995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-2
296296
438438
Total InventoryTotal Inventory
11.9%11.9%18.6%18.6%
VacancyVacancy
In M
illio
ns
In M
illio
ns
Numbers total 4 quarters to end of current quarterNumbers total 4 quarters to end of current quarter
Absorption and ActivityAbsorption and Activity
1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-2
ActivityActivity
39.039.0
15.3
15.3 AbsorptionAbsorption 4.04.0
34.234.2
In M
illio
ns
1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-21995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-2
In M
illio
ns
26.626.6
69.869.8
Total Used Space
Total Used Space
8.88.8 11.711.7New SpaceNew Space
New/Used Space AvailabilityNew/Used Space Availability
Numbers total 4 quarters to end of current quarterNumbers total 4 quarters to end of current quarter
New Construction: 1995-2004New Construction: 1995-2004
1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-21995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-2
13.2
13.2 7.27.2
New Construction
New Construction
Build-to-SuitBuild-to-Suit3.43.4
4.0
4.0
In M
illio
ns
Deals CompletedDeals Completed
454598982082083737 2
020
1425
1425
Under 19,999 SF
Under 19,999 SF
20,000 - 39,999 SF20,000 - 39,999 SF
40,000 - 59,999 SF40,000 - 59,999 SF
60,000 - 79,999 SF60,000 - 79,999 SF
80,000 - 99,999 SF80,000 - 99,999 SF
100,000 & Up
100,000 & Up
Numbers total 4 quarters to end of current quarterNumbers total 4 quarters to end of current quarter
In M
illi
on
sIn
Mil
lio
ns
1.81.8
5.75.74.74.7
2.42.4
12.812.8
9.69.6
Square Feet LeasedSquare Feet Leased
Under 19,999 SF
Under 19,999 SF
20,000 - 39,999 SF20,000 - 39,999 SF
40,000 - 59,999 SF40,000 - 59,999 SF
60,000 - 79,999 SF60,000 - 79,999 SF
80,000 - 99,999 SF80,000 - 99,999 SF
100,000 & Up
100,000 & Up
Numbers total 4 quarters to end of current quarterNumbers total 4 quarters to end of current quarter
Distribution Hot MarketsDistribution Hot Markets
AbsorptionAbsorption
17.1%17.1%17.1%17.1%
17.7%17.7%17.7%17.7%
42.2%42.2%42.2%42.2%
Percentage of the market's positive net absorption Numbers total 4 quarters to end of current quarter
Distribution Hot MarketsDistribution Hot Markets
AbsorptionAbsorption
42.2%42.2%42.2%42.2%
17.7%17.7%17.7%17.7%
17.1%17.1%17.1%17.1%ActivityActivity22.4%22.4%22.4%22.4%
13.1%13.1%13.1%13.1%
21.0%21.0%21.0%21.0%
Numbers total 4 quarters to end of current quarter
Distribution Hot MarketsDistribution Hot Markets
AbsorptionAbsorption
17.1%17.1%17.1%17.1%
42.2%42.2%42.2%42.2%
17.7%17.7%17.7%17.7%
ActivityActivity23.2%23.2%23.2%23.2%
13.1%13.1%13.1%13.1%
21.0%21.0%21.0%21.0%
Available UsedAvailable Used
18.8%18.8%18.8%18.8%
10.9%10.9%10.9%10.9%19.2%19.2%19.2%19.2%
Distribution Hot MarketsDistribution Hot Markets
AbsorptionAbsorption
42.2%42.2%42.2%42.2%
17.7%17.7%17.7%17.7%
17.1%17.1% 17.1%17.1%ActivityActivity 23.3% 23.3% 23.3% 23.3%
13.1%13.1%13.1%13.1%
21.0%21.0%21.0%21.0%
Available UsedAvailable Used
18.8%18.8%18.8%18.8%
19.2%19.2%19.2%19.2%10.9%10.9%10.9%10.9%
24.5%24.5%Available NewAvailable New
19.5%19.5%
19.6%19.6%
Transportation
• By Sea: 50 carriers/160 companies• By Rail: 5,200 miles of rail• By Road:2,285 miles of interstate• By Air: 27 air cargo carriers• With Data: 14 fiber optic networks• Intellectual Capital
• By Sea: 50 carriers/160 companies• By Rail: 5,200 miles of rail• By Road:2,285 miles of interstate• By Air: 27 air cargo carriers• With Data: 14 fiber optic networks• Intellectual Capital
Atlanta: Center of Distribution Atlanta: Center of Distribution
Source: U. S. Census Source: U. S. Census
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
PopulationPopulation
AtlantaAtlanta
Regional Distribution Centers Regional Distribution Centers
Source: U. S. Census Source: U. S. Census
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
AtlantaAtlanta
E. Pennsylvania
E. Pennsylvania
PopulationPopulation
Regional Distribution Centers Regional Distribution Centers
Source: U. S. Census Source: U. S. Census
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
AtlantaAtlanta
ChicagoChicago
E. Pennsylvania
E. Pennsylvania
PopulationPopulation
Regional Distribution Centers Regional Distribution Centers
Source: U. S. Census Source: U. S. Census
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
AtlantaAtlanta
DallasDallas
ChicagoChicago
E. Pennsylvania
E. Pennsylvania
PopulationPopulation
Regional Distribution Centers Regional Distribution Centers
Source: U. S. Census Source: U. S. Census
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
AtlantaAtlanta
DallasDallasLos AngelesLos Angeles
ChicagoChicago
E. Pennsylvania
E. Pennsylvania
PopulationPopulation
Developments Impacting Distribution Facilities
• Governmental Regulations - Trucking regulations
- Fire code issues
• Technological changes-RFID tracking device-Supply-chain management systems
• Governmental Regulations - Trucking regulations
- Fire code issues
• Technological changes-RFID tracking device-Supply-chain management systems
ConclusionConclusion
• Transportation infrastructure
• Largest industrial inventory in southeast
• Trends- Population Growth- Growth in Intermodal Hubs
- Governmental changes
- Technological advances
• Transportation infrastructure
• Largest industrial inventory in southeast
• Trends- Population Growth- Growth in Intermodal Hubs
- Governmental changes
- Technological advances