X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA-In a highly competitive market, First Industrial Realty Trust Inc. of Chicago has locked up a tenant for 12 years at its 13-year-old, 131,320-sf light distribution facility at 4051 Southmeadow Parkway in South Atlanta. PrimeSource Building Products of Indianapolis is taking the entire building at an aggregate rent of $5 million. Average asking rent for light industrial space in the Fulton County submarket is $2.50 per sf.

Brian Netzky and Michael Morgan of Julien J. Studley handled the transaction. Mark Dishaw, First Industrial’s senior regional director, estimates the vacancy level in metro Atlanta’s 450-million-sf industrial real estate sector at 15% to 17%. Average occupancy in the submarket is 81%.

“Like most metropolitan areas, net aborption has been weak” in Atlanta’s industrial market, Dishaw tells GlobeSt.com. “The silver lining is that there is little or no new spec construction,” which will help the market use up its inventory.

In past years, about 15 million sf of new space surfaced annually, the Chicago executive says. “Of course, net absorption was also strong in those periods and the market absorbed most of the new product.”

But Dishaw says there is still a large volume of sublease space in the metro Atlanta market as companies consolidate their operations and use less space to run their businesses. “We might have another year to go” before a good portion of the inventory is absorbed, he adds.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.