The Atlanta industrial market continues to remain hot pushing its vacancy rate to an all-time low after the third quarter 2021. Leasing activity included two transactions greater than one million square feet (MSF). Companies Ace Hardware and CJ Logistics entered into the leases.
CJ Logistics signs 1 MSF Lease in Locust Grove
Companies signed two leases greater than one million square feet during the quarter. The first lease — for Ace Hardware — is a 1.1 MSF building under construction in Jefferson. The project will deliver in 2022.
Secondly, CJ Logistics signed a ten-year lease for 1 MSF in Locust Grove. The Illinois-based supply chain company will occupy the previously vacant building off Price Drive. The building, known locally as the ClayCo building, was built in 2017. Employment info for CJ Logistics, such as the number of positions created, was not available at press time.
Vacancy Rate Below 4%
The Atlanta market has a vacancy rate of 3.9%. This breaks the previous record set three months earlier. There has been 38.2 MSF of leasing activity year to date. By comparison, 41.3 MSF leased in all of 2020.
According to Cushman & Wakefield, the Atlanta market has 39.2 million square feet of industrial space concurrently under construction. The real estate company recently shared their third quarter 2021 market report.
There are ninety-one projects under construction across the region. Some of these sites within Henry County include Greenwood 75, Locust Grove Logistics Center and Gardner Logistics Park phase II.
Building Sales Greater than $100 Million
Atlanta Business Chronicle reported four sales greater than $100 million this year. It’s the first time four sales above this mark have occurred in one year in the Atlanta industrial market.
Sales include the following: KKR, a New York investment firm, paid $102 million for Palmetto Logistics Center and Goldman Sachs paid $134 million for Majestic Airport Center 3. Both properties house greater than 1 MSF buildings in the I-85 South corridor. The Goldman Sachs purchase is the second sale this year of the airport center building for more than $100 million.
In addition, KKR purchased Lambert Farms Building B for $103 million in September. Pattillo Construction completed the 1.1 MSF building in 2019. The McDonough location is fully leased to Purple Mattress and Incora.
Featured image shows Lambert Farms Building B. Photo credit Pattillo Construction.
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