We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Metro Atlanta continues industrial roll as developer bets on 2.6-million-square-foot project
newsworthy

Metro Atlanta continues industrial roll as developer bets on 2.6-million-square-foot project

April 27, 2017
DC Velocity Staff
No Comments

Chalk up another one for the nation's hottest industrial property market.

Developer and investment firm Port Logistics Realty (PLR) has broken ground in Atlanta on a 1.1-million-square-foot industrial park, the first part of a two-phase project that will result in as much as a 2.6-million-square footprint for Dallas-based PLR, which is making its first foray in Atlanta.

The project, "Palmetto Logistics Park," is located about 12 miles southwest of Hartsfield-Jackson Atlanta International Airport, which is south of the city's downtown area. The park is based near Interstate 85 and an intermodal facility occupied by railroads CSX Transportation and BNSF Railway Co. The first phase, which will consist of a 1.1-million-square-foot build-out that is expandable to 1.3 million square feet, is set to be completed this winter, PLR said.

There is no timeline as of yet for work on the second phase, which will include another 1.3-million-square-foot facility. Chicago-based Colliers International will market the property, PLR said. The announcement was made earlier this month.

With a population approaching 6.5 million people, the Atlanta metro area is a huge consumption market. It is also the commerce hub of the southeast U.S. "Strong market fundamentals combined with increasing demand for Class A space makes Atlanta one of the most sought-after industrial markets in the country," said Rob Huthnance, president of PLR Development, a PLR unit.

The new project sustains the momentum for metro Atlanta, which is already coming off the best quarter of industrial activity in its history. The market experienced a record 6.4 million square feet of positive net absorption in the quarter, breaking the previous record set in the fourth quarter of 2014, according to data published this week by New York-based real estate firm Cushman & Wakefield (C&W). Net absorption is calculated by taking the occupied square footage at the end of a period, subtracting the occupied amount at the start of that period, and factoring in levels of vacated and newly constructed space.

About 15.5 million square feet of industrial capacity was under construction at the end of the quarter, up from 10.4 million square feet at the end of the 2016 first quarter. The additional supply might explain why, despite the demand surge, Atlanta's vacancy rate in the first quarter hovered around 8.7 percent, compared to a severely space-constrained industrial market like Los Angeles, whose first-quarter vacancy rate was slightly more than 1 percent.

The project is a so-called speculative development, which is the real estate industry's version of "build it, and they will come." Industrial developers shied away from excessive "spec" development during the years leading up to the financial crisis and recession. This helped the market avoid most of the hammering which would subsequently befall the residential and commercial office segments. Even after the recession ended and the industrial market began what has been a historic, multi-year recovery, spec development lagged.

Propelled by a surge in e-commerce demand, however, spec development has begun to rise. In the first quarter, speculative projects under construction totaled 145.5 million square feet, comprising two-thirds of the square footage currently under construction, C&W said. According to the firm, one-third of spec projects now underway are in Atlanta, Dallas, and southern California's Inland Empire, where many of the Los Angeles area's warehouses and distribution centers are clustered.

Logistics Network Design
KEYWORDS Cushman & Wakefield Colliers International Port Logistics Realty
  • Related Articles

    CapRock Partners Breaks Ground on 2 Million-Square-Foot Industrial Masterplan in Inland Empire West

    CapRock Partners Begins Construction on 3.4-Million-Square-Foot Infill Industrial Complex in Central

    CBRE Capital Markets Closes $70.6M Sale of 1.2 Million Square Foot Twin Cities Industrial Portfolio

Recent Articles by DC Velocity Staff

Companies to grow investments in energy-transition solutions, emissions reduction

Cargo imports forecast to sink near three-year low in February

Air cargo demand slumped in 2022 after “extraordinary” levels in 2021

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Schneider welcomes first battery-electric truck

  • Fred Smith is not worried about Amazon

  • RJW LOGISTICS GROUP EXPANDS RETAIL LOGISTICS OPERATION TO DALLAS

  • Researchers: Ships can look to Mother Nature for energy-saving ideas

  • Maersk deploys indoor drones for warehouse inventory counts

Now Playing on DCV-TV

C8c3bc6b a91d 4181 a18f 35f288257630

ACPaQ: Fast and reliable automated mixed case palletizer

DCV-TV 4: Viewer Contributed
Fully Automated Mixed Case Palletizing ACPaQ is a universally applicable solution for fully automated order picking of mixed case pallets based on customers‘ requirements. Its software allows you to customize the palletizing order to increase efficiency during in-store replenishment. The mixed case palletizer...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing