The Atlanta industrial market has been hot and setting records for quite some time now, and the third-quarter numbers for 2021 show that this trend is continuing as we are once again setting all-time record highs for activity, positive net absorption and new construction. Activity for the Atlanta industrial market for the third quarter alone was over 24.6 million square feet, which beat the previous record for a single quarter by over 4.1 million square feet. Adding the third-quarter numbers for activity to the previous three quarters, Atlanta has posted a new record high for a four-quarter period with over 82.2 million square feet of activity. This breaks the previous four-quarter record for activity by over 6.4 million square feet. It would certainly be logical to conclude that the net absorption numbers would be robust and positive as well for the same time periods, and you would be right. Atlanta set another record for positive net absorption with over 12.1 million square feet, which was over 2.8 million square feet higher than the previous record. When you add the third quarter numbers to the previous three quarters, you will see again a new record high for a four-quarter period with …
By Zack Taylor, senior vice president, Colliers Houston’s industrial market continued to see strong leasing activity in the third quarter. Overall net absorption for 2021 should easily pass 20 million square feet, making it the best year on record by a long shot. For context, Houston’s industrial market has, on average, absorbed between 8 million and 11 million square feet of space per year since 2014. Houston’s North and Southwest submarkets absorbed the most space in the third quarter of this year, led by Lowe’s Home Improvement taking down 1.5 million square feet and Amazon taking 1.9 million square feet in each of those respective submarkets. Total marketwide leasing volume for the year is well over 30 million square feet and does not show any signs of stopping as we hit the midpoint of the fourth quarter. Direct vacancy is continuing its downward trend, but rental rates have largely remained the same on new product. Second-generation infill warehouses are experiencing the greatest increase in rents, especially for tenants with requirements between 20,000 and 50,000 square feet. Many of these tenants are faced with a dilemma: They can either accept higher rents for their infill locations or relocate to more expensive …
FORNEY, TEXAS — A partnership between Atlanta-based Seefried Industrial Properties and San Antonio-based USAA Real Estate will develop East Gate Logistics Center, an approximately 1.3 million-square-foot industrial project that will be located in the eastern Dallas suburb of Forney. Building features will include 40-foot clear heights, abundant car and trailer parking and an ESFR sprinkler system. Construction is slated to begin in the first quarter of next year and to be complete in mid-2023. The new facility will be the largest of its kind in the history of the Dallas-Fort Worth metroplex, according to the development team. KBC Advisors is marketing the property for lease.
MORTON GROVE, ILL. — Dayton Street Partners has sold a 208,000-square-foot distribution center in Morton Grove, about 16 miles northwest of Chicago. The sales price was undisclosed. The property, located at 6123 Monroe Court, features a clear height of 28 feet, 17 loading docks, three drive-in doors, parking for 150 cars and 1.5 acres of trailer parking. The facility was fully leased at the time of sale to five tenants. Dayton Street acquired the asset in 2016 and updated its façade, repaved the parking lots, installed a new roof and added new signage. Michael Caprile, Zach Graham and Ryan Bain of CBRE represented Dayton Street in the sale. Brookfield Property Group was the buyer.
JANESVILLE, WIS. — Coldwell Banker Commercial has arranged the $12.1 million sale of a 150,000-square-foot industrial building in Janesville, about 75 miles southwest of Milwaukee. Built in 2016 and located at 4260 Capital Circle, the property features a clear height of 30 feet, 12 exterior docks and two drive-in doors. The tenant, IPM Foods, completed a lease renewal and expansion earlier this year. Following the expansion of warehouse space and a freezer, the building will measure 170,000 square feet. Bill Mears and Adam Schultz of Coldwell Banker Commercial McGuire Mears & Associates represented the seller, Badger Property Investments. The buyer was not provided.
PLAINFIELD, IND. — Omada Worldwide Expedite Inc., an independent family-owned transportation company, has expanded its industrial lease to 42,497 square feet at Gateway Business Park in Plainfield near Indianapolis. Omada previously occupied 12,000 square feet at the property, which is owned by Chicago-based HSA Commercial Real Estate. Ryan Kelly of Colliers represented the tenant, while Terry Busch and Jared Scaringe of CBRE represented ownership.
SOUTH HACKENSACK, N.J. — Metro Philadelphia-based investment firm Seagis Property Group has acquired a 63,000-square-foot warehouse in South Hackensack, located outside of New York City in the Meadowlands submarket. The property was fully leased at the time of sale. The seller and sales price were not disclosed. The deal increases the size of Seagis Property Group’s New Jersey portfolio to 33 buildings totaling 5.2 million square feet.
WINSTON-SALEM, N.C. — Dalfen Industrial has acquired Union Cross Distribution Center, a 304,200-square-foot industrial property in Winston-Salem. The sales price and seller were not disclosed. The building was fully leased at the time of sale. Built in 2006, Union Cross Distribution Center is located one mile off Interstate 74 with convenient access to Interstates 40 and 85. This location provides a last-mile distribution opportunity within North Carolina’s Triad region to reach Winston-Salem, Greensboro and High Point’s population base. Other tenants nearby include FedEx, Amazon, Caterpillar, Proctor & Gamble and PepsiCo.
LAKELAND, FLA. — Cushman & Wakefield has arranged the sale of McLane Distribution Center, a 211,113-square-foot distribution center located in Lakeland. The property is fully leased to the McLane Co. Inc., a supply chain services company. Mike Davis, Rick Brugge, Rick Colon, Zachary Eicholtz, Chloe Strada and Dominic Montazemi of Cushman & Wakefield represented the seller, Morris Realty Co., in the transaction. New York-based Brookfield Properties acquired the building for $27.3 million. Located at 2929 Old Tampa Highway, the McLane Distribution Center is situated 30.6 miles east of Tampa and 58.3 miles west of Orlando. The property is also 3.4 miles from downtown Lakeland, and is situated near retailers such as Lakeland-based Publix, Silver Moon Swap Shop Flea Market and a Shell gas station. Built in 1973, the building includes clear heights up to 28 feet, 35-foot x 40-foot column spacing and ample dock-high loading.
GOODYEAR, ARIZ. — CIM Group has purchased Goodyear Airport 85, a recently completed industrial building adjacent to the Phoenix Goodyear Airport in Goodyear. Terms of the transaction were not released. Located at 1685 S. Litchfield Road, the 276,183-square-foot Goodyear Airport 85 is a rear-load industrial facility with 36-foot clear heights, 48 exterior dock doors and ample car, trailer and bicycle parking.