(Save the date: RealShare Industrial 2012 comes to The Bankers Club, Miami, December 5 – 6.)
ATLANTA—Lee & Associates just picked up another 300,000-square-foot industrial assignment in Atlanta. After winning Prologis as a client earlier this year, the firm is expanding its relationship with the industry real estate developer.
Craig Viergever, Tommy Hiles, Rick Tumlin, Michael Sutter, Tyler Flemming, and Billy Snowden handle the Prologis account for Lee in Atlanta. The new assignments include a 93,600-square-foot distribution center in Doraville, a 60,168-square-foot building at 3645 Oakcliff Road, and a 151,644-square-foot building at 6344 Best Friend Road.
Viergever, executive vice president and principal of Lee & Associates Atlanta, tells GlobeSt.com his team plans to leverage its market knowledge to give Prologis as many tenant options as possible. The goal is to help the industrial developer increase the occupancy of its portfolio with credit worthy tenants.
“One of the projects, Carter Pacific, has already been taken from 77% occupancy to 95% occupancy,” Viergever says. “Some of the other buildings have 50% or greater vacancy, but we are generating significant interest and actively negotiating for several new tenants.”
The Prologis portfolio in Gwinnett and DeKalb counties includes two three-building portfolios in Atlanta’s Northeast submarket: Prologis Carter Pacific, with 20,000 square feet available, and Prologis Atlanta Northeast. The Lee team also represents 20,000 square feet available within Prologis Olympic Industrial in Smyrna.
Viergever is bullish on Prologis’ prospects, noting that Atlanta’s industrial market continues to improve, albeit a very slow pace. His market research shows Atlanta industrial hovering around a 12% vacancy.
“With the exception of a few pockets, there has been little to no rental growth, but we are seeing a decrease in both concessions and landlord TI,” Viergever says. “Interstate access and building functionality remain the top concerns for tenants. Opportunities are on the horizon for rental growth and increase occupancy. Challenges are that we are a long away from current market rates meriting speculative construction with the exception of large box distribution, which can be developed for much less per square foot due to economies of scale.”