atlanta industrial outlook | q3 2012 | jll

on point Atlanta . Industrial Outlook . Q3 2012

Modest market activity for

Atlanta’s third quarter

This quarter’s consistent warehouse fundamentals work together to offer

investors and landlords a foundation to build on. Positive net absorption

and declining vacancy rates have been the norm since mid 2010.

Atlanta’s industrial real estate is gaining increasing attention from the

investment community as an affordable and viable second-tier alternative

to overheated gateway markets.

Jones Lang LaSalle • On Point • Atlanta Industrial Outlook • Q3 2012 3

Demand for warehouse space, the industrial classification which makes up 86.4 percent of Atlanta’s

inventory by square feet, showed its tenth quarter of positive net absorption. Likewise, and due

primarily to historically low levels of new deliveries, vacancy rates have decreased for nine

consecutive quarters since their mid-2010 high. This further solidifies the market’s transition

through the nascent phases of recovery. Although below historic averages, the reliability of these

figures lends confidence to landlords and investors alike.

Tenants in the market for metro-wide space are finding fewer options to choose from. Limited

opportunities are available for occupiers requiring both modern building design and more than

250,000 square feet. Availabilities in the Northeast submarket could disappear quickly if many of

the known requirements are executed. These currently total 4.6 million square feet.

In contrast to these gains seen for warehouse space, manufacturing and flex-oriented property

trends remain challenged. Vacancy rates are increasing and significant net absorption has not been

seen year-to-date. Manufacturing, representing 13.6 percent of the total industrial market by square

feet, has seen much of its space become functionally obsolete relative to today’s operations. In

many cases, investments in redevelopment and remediation cannot be justified over build-to-suit

options. Companies have chosen to construct their own facilities, including Mitsubishi Electric’s

559,407-square-foot building on Satellite Boulevard.

Atlanta industrial overview

Total industrial market (owner occupied included)

Supply Construction Vacancy Availability Demand Pricing

Total stock (s.f.) Under construction (s.f.) Rate Trend Rate Trend Q3 2012 net absorption (s.f.) Average rental rate (nnn)

Total industrial market 499,961,756 4,426,799 12.7% 18.5% 2,376,913 $3.02

Warehouse/distribution 431,748,014 2,268,592 13.5% 19.5% 2,207,518 $3.04

Manufacturing 68,213,742 2,158,207 8.08% 11.8% 169,395 $2.55

Total flex market 34,947,789 0 20.0% 24.2% -3,831 $7.81

Trend spotlight… • Big box vacancy, 250,000 square feet and greater, has dropped below seven-year historic

averages metro-wide. The Northeast, Airport/South I-85, and South I-75 submarkets are most

ripe for future supply.

Economy

Third quarter economic activity offers a positive outlook going into the final months of 2012. Metro

Atlanta’s unemployment rates continue their decline to 8.8 percent in August which is down from

9.7 percent a year prior. The state’s drop in unemployment mirrors this progress, currently at 9.0

percent and down from 9.8 percent the same time last year, although greater than the nation’s

average of 7.8 percent. Atlanta saw a modest increase in average home sale prices since June,

moving up by 2.6 percent over the four-month period. This is stronger than the average increases of

many other major U.S. cities. Stability of this particular sector is an important factor in Atlanta’s

progress through the recovery and is key to the success of metro industrial activity.

Movement of goods through the city also has an impact on local real estate market performance.

Port related imports have been increasing. The Georgia Ports Authority recently logged 779,901

twenty-foot equivalent units (TEUs) year-to-date, the standard measurement of a port’s

containerized cargo volume. This represents a 2.1 percent gain over 2011’s volume over the same

period. Georgia’s ports, which feed directly into Atlanta, ranked fourth overall when compared

against all other U.S. ports in Jones Lang LaSalle’s annual Seaport Index Score. Taking into

consideration both terminal statistics and the port-centric industrial real estate market, Georgia’s

ports scored higher than neighboring Port of Charleston (10th) and Port of Jacksonville (12th).

Atlanta’s Hartsfield-Jackson International Airport also contributes significantly to metro cargo flow,

heavily influencing demand for warehouse space in adjacent submarkets. Plans to add another

Atlanta-owned100,000-square-foot cargo transfer facility have been approved, cementing the city’s

investment in expanding the capacity.

Market conditions

As with metro economic indicators, modest gains in Atlanta’s industrial real estate fundamentals

were tracked. What stands out as significant is the consistency of these figures and where they

suggest the market could be headed.


Atlanta industrial overview, cont.

Outlook

Overall, Atlanta’s industrial market position will likely progress along the real estate cycle

throughout the remainder of the year and into 2013. Velocity of that improvement, however,

depends heavily upon consumer’s perception of our post-election economic and political

environment. We expect the market will continue to tighten if positive demand for warehouse space

continues on its current trajectory, offering occupiers fewer options and less influence at the

negotiating table. The Northeast and Airport/South I-85 submarkets especially will continue to

tighten due to their disproportionately large volume of core big box warehouse and distribution

space, which typically outperform the market as a whole.

As the market for warehouse space solidifies, affordable debt and low cost of materials are factors

that combine to lay the groundwork for future speculative construction. Build-to-suit development is

already active metro-wide with 5.3 million total square feet in planning or under construction. This

includes Home Depot’s 1.1 million-square-foot rapid deployment center in McDonough.

The distribution facility will be designed to fulfill e-commerce operations, another of several recent

highly-customized projects in Atlanta. Retrofitting the company’s Braselton facility proved cost

prohibitive. As retailers focus on minimizing supply chain outlay they are electing to upgrade and

consolidate, driving demand for modern space. The next wave of speculative construction is likely to

accommodate unique design elements such as expanded employee parking, sort mezzanine space,

larger office areas, full HVAC, and greater clear heights. Another speculative industrial

announcement in the final quarter this year is probable. What is more likely, however, is that 2013

will reveal several spec projects designed to capture the next generation of occupiers.

The automotive industry in particular is expected to continue activity in the state, representing 2.2

million total square feet of known requirements for space. Georgia’s pro-business climate,

transportation infrastructure, energy prices and educated workforce are expected to earn new

opportunities from elsewhere in the U.S. and overseas. Recent investments by Subaru, Mobis and

Toyota offer momentum for future successes.

Atlanta property clock

Land

lord

leve

rage

Tenant leverage

Peaking

market

Falling

market

Rising

market

Bottoming

market

Chattahoochee, Central Atlanta

North Central, Northwest, I-20 West

I-20 East, South I-75

Airport/South I-85, Northeast


Pricing trends

• Overall average asking rates remain relatively flat

• Effective rental rates are slowly rising in the more active submarkets

• Warehouse/distribution rates dropped overall since the previous quarter

• Submarkets that noticed a drop in warehouse/distribution rates include Airport/South I-85, Central Atlanta, I-20 East, North Central and the Northeast

• Metro-wide manufacturing asking rents fell by $0.15 since Q3 2011

• Quarter-over-quarter flex pricing increased again, this time by $0.18

Atlanta industrial overview, cont.

YTD net absorption

Demand trends

• Absorption figures were positive again this quarter in response to previous quarter’s leasing volume. Current activity does not seem to be quite as vibrant.

• Demand in the Northeast was driven by ‘mid box’ users rather than smaller ‘bread and butter’ tenants

• The Northeast has had 10 straight quarters of positive net absorption totaling about 5.0 million square feet

• Manufacturing demand trailed off considerably this quarter, although there are several build-to-suits in various construction phases

• South I-75 put up its fifth quarter’s worth of positive net absorption

Average rental rate


Methodology…

The leased industrial sector excludes owner occupied

product from the market’s data set, and provides a rental

equivalent perspective for industrial buildings that are

leased by tenants. Buildings can move into and out of this

data set based upon being purchased or sold by a

particular user.

Recent lease transactions

Tenant name Location Submarket Deal type Size (s.f.)

Home Depot Greenwood Industrial Pkwy South I-75 BTS 1,118,508

International Paper 300 Horizon Drive Northeast New 356,000

Subaru 9000 Riverside Parkway I-20 West New 306,000

Tenants in the market

Tenant name Submarket concentration Size requirement (s.f.)

ConAgra Foods Metro-wide 1,000,000+/-

Restoration Hardware Metro-wide 800,000 – 1,000,000

Hwashin Airport/South I-85 400,000

Total leased industrial market (excluding owner occupied facilities)

Supply total

stock (s.f.)

Vacancy

rate

Availability

rate

Demand

Q3 2012 net

absorption (s.f.)

Pricing

Average rental

rate (nnn)

Total leased industrial market 340,298,184 17.4% 24.8% 2,202,199 $3.03

Warehouse/distribution 315,369,955 17.3% 24.6% 2,167,029 $3.07

Manufacturing 24,928,229 18.9% 26.9% 35,170 $2.59

Total leased flex market 26,302,576 24.2% 28.7% 8,153 $7.67

Sector trends… • The automotive industry has recently been active in the Southeast and Georgia in

particular. Drawn by economic incentives and a favorable business climate the future is

bright for more regional activity from this sector.

• The next wave of speculative construction is likely to accommodate design elements

unique to e-commerce facilities. Expanded employee parking, sort mezzanine space,

larger office/break rooms, full HVAC, and greater clear heights will be common.

• Occupiers representing the food industry make up a significant amount of known

requirements in the state, currently representing over 1.6 million square feet.

Atlanta leased industrial market [excluding owner occupied facilities]


Buyers making up the majority of these investments include corporate users, investment

management firms, and high net worth individuals. Publically traded real estate investment trusts

have emerged as net sellers. These organizations could possibly be seeking capital to sure up

balance sheets to either acquire in primary markets or fuel the next wave of speculative

construction. The chart below illustrates Atlanta’s average price per square foot rates decreasing

steadily since 2007. This is as a result of an increasingly large contingent of lower quality and

lower priced assets as a percentage of overall sales.

Atlanta’s success as a city in which to invest, open offices, or reside is entrenched in its ability to

keep and create jobs. Compared to other metros in the United States, Atlanta has faired relatively

poorly. A reigniting of the financial, manufacturing and single-family housing markets would be a

welcome sight and would likely propel the region through the recovery.

Atlanta industrial capital markets overview

Northeast 6485 Crescent Drive

RBA 360,460 s.f.

Buyer Ole Mexican Foods

Seller Weingarten Realty

Price (p.s.f.) / Cap rate $27.00 / unknown

Date sold July 2012

Northeast 2905 Pacific Drive

RBA 155,396 s.f.

Buyer SPP Pumps

Seller Nordson Corporation

Price (p.s.f.) / Cap rate $32.18 / unknown

Date sold August 2012

Atlanta select sales

Average sales price (p.s.f.) and cap rates by year (warehouse, distribution & manufacturing only)

7.0%

7.2%

7.4%

7.6%

7.8%

8.0%

8.2%

$0

$5

$10

$15

$20

$25

$30

$35

$40

2007 2008 2009 2010 2011 2012

Avg. price (p.s.f.) Cap rate

Chattahoochee Industrial 3755 Atlanta Industrial Parkway North

RBA 407,981 s.f.

Buyer STAG Atlanta

Seller Macfarlan Capital Partners

Price (p.s.f.) / Cap rate $27.70 / 8.90%

Date sold August 2012

As our trading partners around the world wrestle with increasing inflation, economic uncertainty and

political conflict, their demand for U.S. goods and services has declined. The silver lining is that our

nation’s economy is seen as relatively secure and has been drawing additional foreign investment

seeking less risk. With loose monetary policy in place, interest rates remain low, driving investment

toward higher returns found in core real estate assets. Primary industrial markets have offered

opportunities to place that capital.

Over recent periods, however, those gateway markets have experienced bidding wars that

compress cap rates and allow second-tier markets like Atlanta to become viable alternatives.

Responding to this attention, local transaction volume is elevated over previous years. Year-to-date

activity has already exceeded 2011 levels and eclipsed volumes seen in 2010 and 2009.


Statistics

Large block availabilities

Construction map

Contacts

Appendix


Atlanta industrial market statistics

Vacancy: Physically vacant space. Total Vacancy includes both direct and sublease space.

Availability: Space being marketed for lease by owner or sublessor, regardless of occupancy. Total Availability includes both direct and sublease space.

Net Absorption: The net change in occupancy over a measured period of time.

Average Asking Rent: Direct monthly values presented on a NNN basis, then weighted by the amount of direct available space in a building.

Statistics reflect the total industrial market, including owner occupied facilities, 30,000 s.f. and greater.

Submarket

Total

inventory

(s.f.)

Direct

vacancy

(%)

Total

vacancy

(%)

Direct

availability

(%)

Total

availability

(%)

Direct net

absorption

(s.f.)

YTD 2012 direct

net absorption

(s.f.)

Total net

absorption

(s.f.)

YTD 2012 total

net absorption

(s.f.)

Average direct

asking rent

($ p.s.f.)

Average total

asking rent

($ p.s.f.)

Under

construction

(s.f.)

YTD

completions

(s.f.)

Airport/South I-85

Warehouse / Distribution 80,210,624 13.33% 14.45% 16.63% 18.43% -168,294 -632,552 -168,294 -601,645 $2.81 $2.76 1,615,108 0

Manufacturing 14,300,095 6.10% 6.10% 11.98% 11.98% 25,000 43,640 25,000 43,640 $1.58 $1.58 0 0

Total industrial 94,510,719 12.24% 13.19% 15.92% 17.45% -143,294 -588,912 -143,294 -558,005 $2.65 $2.62 1,615,108 0

Flex / R&D 1,501,121 11.08% 12.13% 20.28% 21.33% 1,122 -18,416 1,122 -18,416 $8.44 $8.44 0 0

Central Atlanta

Warehouse / Distribution 7,545,446 9.92% 9.92% 17.71% 18.41% -46,885 -61,365 -46,885 -61,365 $3.45 $3.31 0 0

Manufacturing 2,249,536 16.71% 16.71% 34.58% 34.58% 0 0 0 0 $3.00 $3.00 0 0

Total industrial 9,794,982 11.48% 11.48% 21.58% 22.12% -46,885 -122,730 -46,885 -61,365 $3.28 $3.20 0 0

Flex / R&D 1,623,041 9.15% 9.15% 13.56% 13.56% 671 14,815 671 14,815 $14.48 $14.48 0 0

Chattahoochee

Warehouse / Distribution 11,277,132 9.83% 9.83% 14.77% 14.77% 17,077 -73,220 17,077 -73,220 $4.20 $4.20 0 0

Manufacturing 3,719,964 3.33% 3.33% 3.33% 3.33% 0 0 0 0 - - 0 0

Total industrial 14,997,096 8.22% 8.22% 11.10% 11.10% 17,077 -146,440 17,077 -73,220 $4.20 $4.20 0 0

Flex / R&D 1,328,925 11.79% 11.79% 12.41% 12.41% -20,422 -24,909 -20,422 -24,909 $10.46 $10.46 0 0

I-20 East

Warehouse / Distribution 41,168,007 13.04% 13.04% 16.81% 17.13% 238,880 728,114 238,880 742,514 $2.83 $2.83 0 0

Manufacturing 8,953,416 10.62% 10.62% 11.93% 11.93% -15,350 -182,460 -15,350 -182,460 $3.12 $3.12 1,000,000 0

Total industrial 50,121,423 12.61% 12.61% 15.94% 16.21% 223,530 545,654 223,530 560,054 $2.86 $2.86 1,000,000 0

Flex / R&D 3,123,485 21.17% 21.79% 23.48% 24.10% -25,145 3,865 -25,145 -15,559 $4.63 $4.63 0 0


Atlanta industrial market statistics, cont.

Submarket

Total

inventory

(s.f.)

Direct

vacancy

(%)

Total

vacancy

(%)

Direct

availability

(%)

Total

availability

(%)

Direct net

absorption

(s.f.)

YTD 2012 direct

net absorption

(s.f.)

Total net

absorption

(s.f.)

YTD 2012 total

net absorption

(s.f.)

Average direct

asking rent

($ p.s.f.)

Average total

asking rent

($ p.s.f.)

Under

construction

(s.f.)

YTD

completions

(s.f.)

I-20 West

Warehouse / Distribution 76,702,545 14.50% 14.82% 22.28% 23.71% -85,414 1,280,355 -102,614 1,264,184 $2.85 $2.83 653,484 0

Manufacturing 5,665,341 8.80% 8.80% 17.83% 17.83% -7,333 -7,333 -7,333 -7,333 $1.88 $1.88 0 0

Total industrial 82,367,886 14.11% 14.41% 21.97% 23.30% -92,747 1,273,022 -109,947 1,256,851 $2.80 $2.80 653,484 0

Flex / R&D 1,933,467 14.04% 14.04% 14.25% 14.25% 30,358 10,502 30,358 10,502 $7.06 $7.06 0 0

North Central

Warehouse / Distribution 12,714,485 10.72% 11.04% 13.54% 13.86% 75,892 -10,405 75,892 -37,977 $4.91 $4.88 0 0

Manufacturing 1,745,554 2.62% 2.62% 6.06% 6.06% 72,680 99,570 72,680 99,570 $2.50 $2.50 0 0

Total industrial 14,460,039 9.74% 10.02% 12.64% 12.92% 148,572 89,165 148,572 61,593 $4.77 $4.15 0 0

Flex / R&D 5,901,410 26.64% 26.68% 30.00% 30.04% 33,218 -80,298 40,269 -70,030 $9.71 $9.71 0 0

Northeast

Warehouse / Distribution 127,350,950 12.08% 12.27% 16.27% 17.80% 1,244,677 2,888,969 1,244,677 2,987,025 $3.36 $3.37 0 636,376

Manufacturing 19,626,620 6.27% 6.27% 7.83% 7.83% -24,827 -243,262 -24,827 -243,262 $2.85 $2.85 1,158,207 0

Total industrial 146,977,570 11.30% 11.47% 15.14% 16.47% 1,219,850 2,645,707 1,219,850 2,743,763 $3.32 $3.34 1,158,207 636,376

Flex / R&D 11,585,630 22.87% 23.81% 26.48% 27.60% -26,079 -128,549 -26,079 -127,213 $6.90 $6.99 0 0

Northwest

Warehouse / Distribution 39,332,832 12.16% 12.26% 15.96% 16.16% 513,592 844,841 538,592 888,675 $3.77 $3.76 0 0

Manufacturing 5,697,096 8.44% 9.41% 11.62% 12.59% 119,225 162,148 119,225 162,148 $2.36 $2.36 0 0

Total industrial 45,029,928 11.69% 11.90% 15.41% 15.71% 632,817 1,006,989 657,817 1,050,823 $3.64 $3.72 0 0

Flex / R&D 7,092,883 14.67% 16.08% 18.90% 21.04% -13,605 -83,213 -4,605 -70,463 $7.95 $7.89 0 0







Atlanta industrial market statistics, cont.

Submarket

Total

inventory

(s.f.)

Direct

vacancy

(%)

Total

vacancy

(%)

Direct

availability

(%)

Total

availability

(%)

Direct net

absorption

(s.f.)

YTD 2012 direct

net absorption

(s.f.)

Total net

absorption

(s.f.)

YTD 2012 total

net absorption

(s.f.)

Average direct

asking rent

($ p.s.f.)

Average total

asking rent

($ p.s.f.)

Under

construction

(s.f.)

YTD

completions

(s.f.)

South I-75

Warehouse / Distribution 35,445,993 13.73% 17.30% 21.08% 29.26% 398,993 870,771 410,193 719,896 $2.76 $2.67 0 1,060,640

Manufacturing 6,256,120 13.96% 13.96% 15.44% 15.44% 0 146,250 0 146,250 $3.19 $3.19 0 0

Total industrial 41,702,113 13.77% 16.80% 20.24% 27.19% 398,993 1,017,021 410,193 866,146 $2.81 $2.82 0 1,060,640

Flex / R&D 857,827 9.82% 9.82% 28.67% 28.67% 0 0 0 0 - - 0 0

Metro

Warehouse / Distribution 431,748,014 12.84% 13.47% 17.73% 19.51% 2,188,518 5,835,508 2,207,518 5,828,087 $3.11 $3.04 2,268,592 1,697,016

Manufacturing 68,213,742 8.00% 8.08% 11.68% 11.76% 169,395 18,553 169,395 18,553 $2.55 $2.55 2,158,207 0

Total industrial 499,961,756 12.18% 12.74% 16.90% 18.45% 2,357,913 5,854,061 2,376,913 5,846,640 $3.05 $3.02 4,426,799 1,697,016

Flex / R&D 34,947,789 19.32% 20.02% 23.25% 24.16% -19,882 -306,203 -3,831 -301,273 $7.81 $7.80 0 0







Atlanta industrial buildings with large block availabilities

Airport/South I-85

13 Blocks

5,222,707 SF

2110 Lawrence Street-(D)-550,000

6855 Shannon Parkway-(D)-517,080

4300 S Fulton Parkway-(W)-471,000

185 Southside Industrial Parkway-(W)-453,587

4575 Lake Mirror Place-(D)-432,500

3700 Southside Industrial Way-(D)-402,554

1000 W Main Street-(M)-351,500

4475 S Fulton Parkway-(W)-315,000

4200 N Commerce Drive-(W)-301,200

7135 Southlake Parkway-(W)-289,343

Distribution

Distribution

Warehouse

Warehouse

Distribution

Distribution

Manufacturing

Warehouse

Warehouse

Warehouse

Contiguous blocks greater than 250,000 square feet; (M): Manufacturing; (D): Distribution; (F): Flex; (W): Warehouse

Manufacturing

Warehouse

Distribution

Distribution

I-20 East

4 Blocks

1,503,527 SF

1335 Industrial Boulevard NW-(M)-531,644

2001 Deere Drive-(W)-378,883

16126 Alcovy Road-(D)-300,000

4650 Hugh Howell Road-(D)-293,000

Warehouse

Warehouse

Warehouse

7795 A Spence Road-(W)-285,600

5025 Fayetteville Road-(W)-279,776

5010 Terminus Drive-(W)-268,567

Chattahoochee

North Central

Northwest

Submarkets with no large block availabilities


Atlanta industrial buildings with large block availabilities, cont.

Distribution

Distribution

Distribution

Warehouse

Warehouse

Warehouse

Warehouse

Warehouse

Warehouse

Warehouse


I-20 West

14 Blocks

6,078,324 SF

600 Riverside Parkway-(D)-653,484

7705 Staples Drive-(D)-585,000

420 Lee Industrial-(D)-561,600

1265 Terminus Drive-(W)-527,000

3710 Atlanta Industrial Parkway N-(W)-446,664

4975 Powder Springs Dallas Road-(W)-350,000

6150 Xavier Drive SW-(W)-310,000

6355 Boat Rock Boulevard SW-(W)-296,260

757 Douglas Hill Road-(W)-295,768

6300 Boat Rock Boulevard SW-(W)-292,310

1600 Distribution Court-(W)-258,034

7905 Troon Circle-(W)-254,000

5305 Tulane Drive SW-(D)-253,738

125 Pequanoc Drive-(M)-250,000

Warehouse

Warehouse

Distribution

Manufacturing

Distribution

Distribution

Warehouse

Distribution

Warehouse

Warehouse

Distribution

Manufacturing

Warehouse

Manufacturing

Northeast

12 Blocks

6,726,930 SF

1187 E Hightower Trail-(D)-1,370,000

1523 Steve Reynolds Parkway–(D)–962,280

6205 Best Friend Road–(W)–735,233

596 Bonnie Valentine Way–(D)–583,525

1111 Broadway Avenue-(W)-544,838

2500 W Park Drive-(W)-500,488

350 Raco Parkway–(D)–486,000

150 W Vine Street-(M)-411,412

2800 Sawnee Avenue-(W)-302,600

1215 Palmour Drive-(M)-296,000

Warehouse

Distribution

3312 N Berkeley Lake Road NW-(W)-276,554

2500 W Park Drive-(D)-258,000


Atlanta industrial buildings with large block availabilities, cont.

Warehouse

Warehouse

Distribution

Manufacturing

Warehouse

Warehouse

Warehouse

Warehouse

Warehouse

Warehouse


South I-75

15 Blocks

7,506,971 SF

201 Greenwood Court–(W)–800,000

150 Greenwood Industrial Court–(W)–612,070

201 King Mill Court–(D)–570,000

375 Airport Road–(M)–509,000

220-230 Greenwood Court–(W)–504,000

237 Greenwood Industrial Court–(W)–455,000

3100 SouthPark boulevard-(W)-451,200

250 Declaration Drive–(W)–429,600

210 Interstate South Drive–(W)–428,160

3060 SouthPark Boulevard-(W)–411,000

Warehouse

Warehouse

Warehouse

Distribution

Warehouse

197 King Mill Road–(W)–400,000

200 Eagles Landing Parkway–(W)–400,000

100 Interstate South Drive-(W)-275,000

100 Constitution Drive–(D)–273,400

3000 SouthPark Boulevard-(W)-273,200

Central Atlanta

1 Block

287,000 SF

1200 White Street SW-(M)-287,000

Manufacturing


Construction completed – year to date

FedEx Distribution Center – Atlantic Boulevard,

delivered Q2 2012

Marten Transportation – Stone Mountain Industrial Park,

delivered Q1 2012

Georgia Pacific Build-to-Suit – Westridge Parkway,

delivered Q3 2012

Construction in progress

IDI Speculative Building – Riverside Parkway,

est. delivery Q4 2012

Mitsubishi Build-to-Suit – Satellite Boulevard,


Toyota Industries Plant – Bonnie Valentine Parkway


Kuehne + Nagel Building – Camp Creek Business Center,


Baxter – Stanton Springs Industrial Park

est. delivery 2015/2018

Home Depot RDC – Greenwood Industrial Parkway


PPG – 7795 Spence Road


1

1

2

Atlanta construction map

2

3

4

4

3

5

5

6

6

3

3

7

7

8

8

9

9


Atlanta contacts

Research

Ryan Harchar

Research Analyst

Americas Industrial

+1 404 995 6509

[email protected]

Sarah Dasher

Research Manager

+1 404 995 6531

[email protected]

Brokerage

Steve Grable

Senior Vice President, SIOR

+1 404 995 2455

[email protected]

Bill Kee

Senior Vice President

+1 404 995 2244

[email protected]

Chris Tomasulo

Senior Vice President

+1 404 995 2462

[email protected]

Scott Quesinberry

Vice President

+1 404 995 6590

[email protected]

Ryan Wood

Senior Associate

+1 404 995 2280

[email protected]

PDS

Ethan Milley

Managing Director

+1 404 995 2188

[email protected]

Brian Terrell

Managing Director

+1 404 995 2413

[email protected]

Tripp Eskridge

Senior Vice President, LEED GA

+1 404 995 2466

[email protected]

Alan Clayton

Vice President

+1 404 995 2460

[email protected]

Ray Dankberg

Vice President

+1 404 995 2415

[email protected]

Rodney Davidson

Vice President

+1 404 995 6410

[email protected]

Reed Davis

Associate

+1 404 995 2227

[email protected]

Bob Robers

Vice President

+1 404 995 2445

[email protected]

Paul Roeser

Vice President

+1 404 995 2456

[email protected]

Tom Simpson

Vice President, LEED AP

+1 404 995 6349

[email protected]

Property Management

Linda Bolan

Managing Director

+1 404 585 4506

[email protected]

BEI

Amy Gerber

Executive Vice President

+1 404 995 2447

[email protected]

©2012 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.

Jones Lang LaSalle

3344 Peachtree Road NE

Suite 1200

Atlanta, GA 30326

tel +1 404 995 2100

fax +1 404 995 2184

www.us.joneslanglasalle.com/industrial

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased

value by owning, occupying or investing in real estate. With 2011 global revenue of more than $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide,

including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment

Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $47.2 billion of assets under management. For further

information, please visit our website, www.joneslanglasalle.com.

Jones Lang LaSalle Research

Jones Lang LaSalle’s research team delivers intelligence, analysis, and insight through market-leading reports and services that illuminate today’s commercial real estate dynamics and identify tomorrow’s

challenges and opportunities. Our 347 professional researchers track and analyze economic and property trends and forecast future conditions in over 60 countries, producing unrivalled local and global

perspectives. Our research and expertise, fueled by real-time information and innovative thinking around the world, creates a competitive advantage for our clients and drives successful strategies and

optimal real estate decisions.

Jones Lang LaSalle

1125 Sanctuary Parkway

Suite 170

Alpharetta, GA 30009

tel +1 678 226 5420

fax +1 678 226 5235

atlanta industrial outlook | q3 2012 | jll

Documents

square feet

total flex market

industrial classification

percent of atlantas

warehouse space

declining vacancy rates

rate trend rate trend

significant net absorption