Lee & Associates Atlanta is one of the 49 Lee & Associates Offices.

www.leeatlanta.com

Absorption 4,928,562 SF

Vacancy - 80 basis points to 10.8%

Average Rent$3.94/SF, up from $3.92

Under Construction3,352,746 SF

New Supply Delivered165,000 SF

Sales Transaction Totals198 transactions|$1.3B

Average Sales PSF$42 PSF

Lease Activity3,330,270 SF

Unemployment Rate ATL MSA: 6.9% Georgia: 7.2% U.S.: 6.7%

Q1 TRENDS AT A GLANCE

ATLANTA INDUSTRIALMARKET REPORT Q12014

The Atlanta Industrial Market posted a record positive net absorption, ending the quarter at nearly 5m square feet (SF). Largest lease signings in the first quar-ter include: Exel Logistics renewed their 339,362 SF lease at 4795 Coates Drive, Millennium Mat Company’s 256,700 SF lease at 3200 Shawnee Industrial Way, and AVNET signed a new lease for 182,000 SF at 2100 Evergeen Boulevard.

There is a shortage of available existing product in the marketplace. Con-sequently, we expect more build-to-suit projects to occur. Followed by new speculative construction as demand continues to increase.

Development activity is increasing with over 3.3 million SF of projects currently under construction. Notable build-to-suit projects include Procter & Gamble’s 1m SF expansion in the South Atlanta market, Baxter’s 1 million SF manufactur-ing project in the Northeast market, and McMaster-Carr Supply Company’s 700,000 SF warehouse/distribution building in the I-20 West/Douglasville market. One speculative project is currently under construction, Majestic Realty Com-pany’s Majestic Airport III, a 560,625 SF warehouse/distribution building located in the South Atlanta market.

Rental Rates (PSF)

Overall Net Absorption (SF in Millions)

Vacancy Rates (%) 1Q 08

1Q 091Q 10

1Q111Q12 1Q13

1Q14

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Flex Shallow‐bay Warehouse Overall

1Q 08

1Q 09

1Q10

1Q11

1Q12

1Q13

1Q14

‐3.0

‐2.0

‐1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

$2.00

$4.00

$6.00

$8.00

$10.00

1Q 08 1Q 09 1Q 10 1Q11 1Q12 1Q13 1Q14

Overall Flex Warehouse

Dynamic Market: Record AbsorptionVersus Last Quarter

We provide the most com-prehensive market knowl-edge and expertise in the business, specializing in:

Landlord RepTenant prospecting & retention, negotiation, finan-cial modeling, asset position-ing and market reporting are standard components of our representation.

Tenant RepWe optimize clients’ real estate goals by identifying market conditions that mini-mize occupancy costs and maximize the bottom line.

Land Acquisition / DispositionWe thoroughly evaluate each market for best use to net highest profits for owners & developers.

Investment AdvisoryConstant monitoring of mar-ketplace trends plus applied analytical data helps us identify opportunity when it first strikes.

Management ServicesOur team tailors a suite of services for each client’s varying needs, literally from the ground up.

Capital Markets GroupOur relationships with insti-tutional & private funding sources is a natural fit for developers & owners seek-ing joint venture opportuni-ties.

Advisory & ResearchPinpointing market trends through our complex, tai-lored research tactics gives us the leading edge when advising clients on critical real estate decisions.

LOOK TO LEE & ASSOCIATES ATLANTA FOR SOLUTIONS

ATLANTA INDUSTRIALMARKET REPORT Q12014

SIGNIFICANT LEASES

Building Address Submarket Tenant Square Feet Transaction Type6720 Oakley Industrial South Atlanta Proctor and Gamble 1,001,790 Expansion BTS4795 Coates Drive South Atlanta Exel Logistics 339,362 Renewal3200 Shawnee Ind Way Northeast Millenium Mat Company 256,700 New2100 Evergreen Blvd Northeast AVNET 182,000 New

SIGNIFICANT SALES

Building Address Submarket Building Class Square Feet Price / SF1111 Broadway Ave Northeast B 544,838 $39.001001 Cherry Drive Northeast B 455,602 $28.093781 Southside Industrial Ct South Atlanta A 406,989 $43.126600 Governors Lake Pky Northeast A 388,481 $54.70

Proctor and Gamble signed a lease to expand their current premises at 6720 Oakley Indus-trial Boulevard, building 7, at Majestic Airport Center III in Union City, GA. The estimated move -in date is September 1, 2014, when the building is delivered. They will occupy a total of 2,003,580 SF.

6600 Governors Lake Parkway in Atlanta, Georgia sold on January 22nd, 2014, for $21 million. This 338,481 square-foot industrial building was fully occupied by a single tenant at the time of sale. The seller originally built the property to suit for them and the parties had agreed to a 10-year lease renewal in the year leading-up to the sale. It was reported that the tenant was paying annual rent of $1.7 million, in addition to all operating and capital expenses, suggesting the property sold at a cap rate of 8%.

Available Space (SF in Millions)

The Atlanta Industrial Market is com-prised of 585,831,606 SF housed in

7,564 buildings.

6600 Governors Lake Pky

1Q09 1Q10 1Q11 1Q12 1Q13 1Q140.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

Flex Total Shallow Bay Total Warehouse Total

3500 Lenox Road, Suite 200Atlanta, GA 30326

Office: 404.442.2810 | Fax: 404.442.2811

www.leeatlanta.com