Atlanta Industrial Market Second Quarter 2004 Atlanta Industrial Market Second Quarter 2004.

Atlanta Industrial Market Second Quarter 2004

Atlanta Industrial Market Second Quarter 2004

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

Q & A