8/3/2019 Atlanta Industrial Highlights Q3 2011 Final

1/2

Industrial Highlights

Big deals from earlier in theyear take a bite out of vacancy

From an occupancy standpoint, the market had its best quarter since2007. On net, over 3.2 million square feet was absorbed. While this isdefinitely a big positive development for investors and landlords,economic uncertainty is still holding the market in check. The quarters

strength came from a pipeline that included Lowes 1.3 million-square-foot purchase in Palmetto, SANYs build-to-suit in Peachtree City andCorrugated Supplies new operations in Rockdale. Short term leases byGeorgia Pacific and Owens Corning also added another 1.0 millionsquare feet of absorption.

Unfortunately, the pipeline has been greatly diminished, as leasingactivity was unusually slow through the summer months. However, thehottest submarket in the metro, Airport/South I-85, maintained itspositive momentum in leasing and absorption. Now that most of the bigblocks in that submarket are off the market, developers should beevaluating their plans and even beginning some preliminary work. Softersections of the market like Douglas County, McDonough and JacksonCounty may start noticing an increase in demand for distribution space.

IDI has seized on the relatively robust demand for class A logisticsspace by purchasing over 200 acres from Crescent Resources in LithiaSprings. The developer plans to erect a 600,000-square-foot cross-dock-configured building in the near future.

Also noteworthy, The Northeast continued its string of net positivequarters and I-20 East finally showed signs of life with two largemanufacturing deals and improving demand for warehouse space. Andin sales activity, investors showed an appetite for only one kind of deal:fully leased with a single tenant. No significant value-add type deals

were closed over the last quarter.

I-20 East continued

Pratt Industries expanded its Atlanta footprint with an additional125,000 square feet at Twin Creeks Business Center, bringing thatdevelopment to 100.0 percent occupancy.

Pattillo signed Tool Source Warehouse to a 10 year deal in its101,767 square foot facility at 200 Mountain Industrial Boulevard.

I-20 West

Boxercraft, an apparel company, leased 148,300 square feet fromRooker at 7131 Discovery Boulevard in a net-new deal.

Atlanta Office Liquidators took 41,089 at 4530 Patton Drive, justdown the street from its existing location on Commerce Circle.

The Formica Corporation leased almost 19,000 square feet at 8080Troon Circle, a ProLogis building.

North Central

Zip Wireless renewed its 25,000 square foot space at BluegrassValley.

Northeast

Therapak signed on for 40,187 square feet at the Hamilton MillBusiness Center.

Best Buy took about 40,000 square feet 1000 Northbrook Parkwayhandle any overflow from the holiday season. Xtreme Air locked up the remaining 32,000 square feet at 560 Old

Peachtree Road in Northbrook Business Park.Northwest

C.F.F. Stainless Steel grabbed 19,000 square feet in a buildingowned by Brentwood Realty at 2197 Canton Road in Marietta.

South I-75

Georgia Pacific signed a short term deal for 429,600 square feet inDuke Realtys facility at 250 Declaration Drive.

Home Depot enlarged its footprint in the submarket, leasing 363,00square feet for a rapid deployment center at 180 WestridgeParkway.

VisualPak renewed its 102,300-square-foot lease at 4005 HaworthDrive. Becknell Properties installed T-5 lights to sweeten the deal.

Atlanta . Q3 2011

Leasing activity

Airport/South I-85

Owens Corning leased 569,000 square feet near its insulation factorythrough January 2012 in Southpark.

Kmart leased an additional 98,600 square feet in its facility at 5290Old Dixie Highway, consolidating its South Atlanta footprint.

Electronics recycling firm, Round2, leased over 258,000 square feetin Majestic Airport Center II in a net-new deal for the metro.

I-20 East

Corrugated Supplies Company expanded into the Atlanta marketwith a 444,000-square-foot lease at the Rockdale Logistics Center.

That building is now fully leased.

Tour activity

Leasing volume

Rents

Concessions

Sales volume

Construction

deliveries

Construction

starts

Arrows represent change from prior quarter

8/3/2019 Atlanta Industrial Highlights Q3 2011 Final

2/2

Jones Lang LaSalle Atlanta Industrial Highlights Q3 2011

2011 Jones Lang LaSalle IP, Inc. All rights reserved. No part of this publication may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including

without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of Jones Lang LaSalle. The information

contained in this document has been compiled from sources believed to be reliable. Jones Lang LaSalle or any of their affiliates accept no liability or responsibility for the accuracy or completeness of the

information contained herein and no reliance should be placed on the information contained in this document.

Tenants in the market

Metro

Home Depot is evaluating the market with a possible need of 1.0million square feet. They currently occupy multiple warehouses and

distribution centers across the metro. Atlas/Versacold is evaluating its options for 500,000 - 700,000 square

feet of climate-controlled space.Airport/South I-85

Toto USA has a 400,000 - 500,000-square-foot requirement and isevaluating its options.

South I-75

International Paper is in the market with a 350,000 - 400,000-square-foot requirement.

Georgia Pacific is rumored to be considering a realignment of itsdistribution network and is looking for space of around 1.0 millionsquare feet.

Sales activityI-20 East

STAG Industrial REIT of Boston purchased a 226,000 square footwarehouse from Cohen Financial of Chicago in September for $6.7million ($30.00 per square foot). The property is 100.0 percent leasedto Diversitech through December 2016. The address is 2200 CedarsRoad.

I-20 West/Northeast

Rooker sold a five-property portfolio totaling 715,704 square feet toWelsh Companies of Minneapolis for $37.5 million at a cap ratebetween 6.5 and 7.0 percent. Each of the properties is completelyleased. The properties were 8 Mount Moriah Road, 1685 BoggsRoad, 2940 Old Norcross Road, 1370 Discovery Industrial Court and6751 Discovery Boulevard. The deal closed in July.

I-20 West

Welsh Companies also purchased a two property, 639,375 squarefoot, portfolio from The Opus Group for $27.5 million ($43.01 persquare foot) in July. The two buildings, Hartman III and IV, are eachfully leased to a single tenant.

Northeast/South I-75

Exeter Property Group acquired a 10.0-property, 2.1 million-square-foot portfolio from KBS REIT I. The portfolio included properties fromfive states and three distribution centers occupied by Ozburn-HesseyLogistics near 197 King Mill Road and one warehouse occupied byMeggitt Defense Systems at 296 Brogdon Road. The total price of the

portfolio was $91.3 million ($77.65 per square foot) and the dealclosed in September.

Northeast

ProLogis traded a 201,600 square foot fully leased warehouse toClarion Partners for an allocated $5.6 million ($28.00 per square foot)The property, at 220 Cedars Road, its occupied by the InnotracCorporation. The sale closed in August as part of a broader 13-

property 2.8 million-square-foot portfolio.Northwest

Cabot Industrial Value Fund of Boston bought 1169 Canton Road fromClarion Partners for about $17.0 million ($63.85 per square foot). FirsData has the entire 266,250 square foot building leased through 2020The deal, with a cap rate of about 7.8 percent, closed in July.

Pensyn Investment acquired 100 All Metals Drive from AIC Venturesfor an allocated $6.2 million ($44.00 per square foot). The 142,696square foot warehouse/manufacturing facility is home to the All MetaCorporation. The building was part of a broader 4.8 million-square-foot, 27-property portfolio sale that closed in August.

Construction activity

Airport/South I-85 Duke Realty just completed a 61,000 square foot build-to-suit project

for All American Containers at 4400 North Commerce Drive. SANY finally took occupancy at its 409,006-square-foot. assembly

plant at 318 Cooper Circle in Peachtree City.Central Atlanta

Sweetwater Brewery is putting the finishing touches on its 49,000-square-foot expansion on Ottley Drive; construction is scheduled to bwrapped up during the fourth quarter.

I-20 West

IDI is close to closing over 200 acres from Crescent Resources andhas plans to erect a 600,000 square foot speculative building. Thatwould make IDI first to go vertical with speculative space in this cycle

Northeast

Construction is ongoing at FedExs 204,000-square-foot facility inNorcross. Estimated completion for the facility is during the thirdquarter of 2012.