NEW SUPPLY, ABSORPTION AND VACANCY RATES SUBMARKET REPORT ATLANTA www.colliers.com/atlanta MARKET INDICATORS Q4 2010 NEXT QTR VACANCY NET ABSORPTION CONSTRUCTION — — RENTAL RATE Q4 2010 | I-20W/FULTON INDUSTRIAL I-20 West/ Fulton Ind TRENDS & HIGHLIGHTS (1,000,000) (500,000) 0 500,000 1,000,000 1,500,000 4Q09 1Q10 2Q10 3Q10 4Q10 8% 10% 12% 14% 16% 18% Absorption Deliveries Vacancy Total SF 91,256,922 Vacancy Rate 15% YTD Net Absorption 704,766 YTD Deliveries 0 Under Construction 0 Avg. Warehouse Rate $2.81 NNN Source: CoStar Property UPDATE Recent Transactions in the Market SALES ACTIVITY PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER 6047,6049 Fulton Ind. Blvd. $7,810,000 410,806 $19.01 KTR Capital Partners 6355 Boat Rock Blvd. $4,485,100 296,260 $15.14 CalSTRS/Panattoni JV 3451 Atlanta Ind. Hwy. $4,425,000 118,439 $37.36 MDH Partners 6057,6073 Boat Rock Blvd. $2,627,700 154,821 $16.97 Blackstone Real Estate LEASING ACTIVITY TENANT PROPERTY ADDRESS SIZE SF TYPE New Breed Logistics 1700 Westgate Pky. 231,885 Warehouse Renewal Scott Distribution 4175 Boulder Ridge Dr. 142,352 Warehouse Lease Decoma International 100 Performance Way 104,171 Warehouse Lease Robina Floors 825 Great SW Pkwy. 71,542 Warehouse Lease • I-20 West/Fulton Industrial led the Atlanta industrial market in positive absorption for fourth quarter. Over 1 million square feet was absorbed in the three month period. The largest contributor to this positive occupancy was MedLine Industries which moved into 593,404 SF. • Though industrial absorption in I-20 West/Fulton Industrial finished the year positive, demand for space in the submarket remains tepid. The industrial market as a whole is expected to begin recovering in 2011, however, the I-20 West/Fulton Industrial market will see only a handful of the largest deals in the year. • The overall average rental rate for industrial space in the submarket is second lowest in Atlanta. Shallow-bay product in I-20 West/Fulton Industrial is the most affordable in the city at $2.70/sf. Square Feet
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4Q 2010 | Atlanta I-20 W Fulton Industrial | Market Report
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NEW SUPPLY, ABSORPTION AND VACANCY RATES
SUBMARKET REPORTATLANTA
www.colliers.com/atlanta
MARKET INDICATORS
Q42010
NEXTQTR
VACANCY
NET ABSORPTION
CONSTRUCTION — —
RENTAL RATE
Q4 2010 | I-20W/FULTON INDUSTRIAL
I-20
West/
Fulton Ind
TRENDS & HIGHLIGHTS
(1,000,000)
(500,000)
0
500,000
1,000,000
1,500,000
4Q09 1Q10 2Q10 3Q10 4Q10
8%
10%
12%
14%
16%
18%
Absorption Deliveries Vacancy
Total SF 91,256,922
Vacancy Rate 15%
YTD Net Absorption 704,766
YTD Deliveries 0
Under Construction 0
Avg. Warehouse Rate $2.81 NNN
Source: CoStar Property
UPDATE Recent Transactions in the Market
SALES ACTIVITY
PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER
6047,6049 Fulton Ind. Blvd. $7,810,000 410,806 $19.01 KTR Capital Partners6355 Boat Rock Blvd. $4,485,100 296,260 $15.14 CalSTRS/Panattoni JV3451 Atlanta Ind. Hwy. $4,425,000 118,439 $37.36 MDH Partners6057,6073 Boat Rock Blvd. $2,627,700 154,821 $16.97 Blackstone Real Estate
LEASING ACTIVITY
TENANT PROPERTY ADDRESS SIZE SF TYPE
New Breed Logistics 1700 Westgate Pky. 231,885 Warehouse Renewal
Scott Distribution 4175 Boulder Ridge Dr. 142,352 Warehouse Lease
Decoma International 100 Performance Way 104,171 Warehouse Lease
Robina Floors 825 Great SW Pkwy. 71,542 Warehouse Lease
• I-20 West/Fulton Industrial led the Atlanta industrial market in positive absorption for fourth quarter. Over 1 million square feet was absorbed in the three month period. The largest contributor to this positive occupancy was MedLine Industries which moved into 593,404 SF.
• Though industrial absorption in I-20 West/Fulton Industrial fi nished the year positive, demand for space in the submarket remains tepid. The industrial market as a whole is expected to begin recovering in 2011, however, the I-20 West/Fulton Industrial market will see only a handful of the largest deals in the year.
• The overall average rental rate for industrial space in the submarket is second lowest in Atlanta. Shallow-bay product in I-20 West/Fulton Industrial is the most aff ordable in the city at $2.70/sf.
Squa
re F
eet
UNITED STATES:
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This market report is a research document of Colliers International. Information herein has been deemed reliable and no representation is made as to the accuracy thereof. Colliers International-Atlanta, Inc., and certain of its subsidiaries, is an independently owned and operated business and a member fi rm of Colliers International Property Consultants, an affi liation of independent companies with over 480 offi ces throughout more than 61 countries worldwide.
www.colliers.com/atlanta
Accelerating success.Accelerating success.
Marty Arnold Ben Logue
Douglas Biggs Elizabeth McSweeney
Sean Boswell Henry Sawyer
Bill Buist Ryan Sawyer
Lee Cardwell Mike Spears
Chris Cummings Rick Vaughn
Chris Irby Price Weaver
COLLIERS INTERNATIONAL I-20 WEST/FULTON INDUSTRIAL LISTINGS
FOR LEASE
# PROPERTY SF AVAIL. BROKER(S)
1 120 Interstate West Pkwy. 14,400 Sean Boswell / Chris Cummings
2 4300 Westpark Dr. 216,074 Douglas Biggs / Lee Cardwell
3 780 Douglas Hill Rd. 107,000 Sean Boswell / Lee Cardwell
4 6255 Fulton Industrial Blvd. 120,960 Lee Cardwell / Douglas Biggs
FOR SALE
# PROPERTY SF AVAIL. BROKER(S)
5 3376 Highway 5 14,725 Douglas Biggs / Price Weaver