INDUSTRIAL DEVELOPMENT OPPORTUNITY

Transcription

1 INDUSTRIAL DEVELOPMENT OPPORTUNITY 570± ACRES - I-85/NORTHEAST METRO ATLANTA COMMERCE / JACKSON COUNTY, GEORGIA NORFOLK SOUTHERN RAILROAD GA HIGHWAY 98 WHEELER CEMETERY ROAD 570± ACRE ZONED INDUSTRIAL TRACT 85 EXIT 147 3,610 ± ALONG I-85 LORDS MILL ROAD 1

2 OFFERING SUMMARY NORFOLK SOUTHERN RAILROAD GA HIGHWAY 98 WHEELER CEMETERY ROAD 85 EXIT 147 3,610 ± ALONG I-85 LORDS MILL ROAD MARKET ACCESS: 77 million people in 30 million households within a 1-day truck drive At the center of a mega-region stretching from Birmingham, AL to Raleigh-Durham, NC that is growing at twice the national average Adjacent to the Atlanta MSA, which has annual consumer expenditures of $90.6 billion and is projected to grow 23% by 2018 Atlanta MSA expects population growth of 65% by 2030 from the present 5.3MM LABOR ADVANTAGES: industrial workers in the Atlanta metro area over 70,000 which is twice the U.S. Index Rich in production and distribution center skills 30% to 240% greater than the typical U.S. location Commerce-area wage levels for manufacturing and distribution jobs are 8% to 10% below comparable U.S. averages, and 2% to 5% below competitive Atlanta submarkets Size: 570 Acres +/- City limits of Commerce, Jackson County; Location: GMD 465 & 255 Submarket: Northeast Industrial Market along I-85 Zoning: M-2, General Industrial District Road Frontages: 3, ± along I-85 Entrance Access GA Hwy. 98 Wheeler Cemetery ± paved (60 R/W) Wheeler Cemetery - 2,418 ± dirt (No R/W) Wheeler Lane - 2,300 ± paved (60 R/W) Highway ± paved (100 R/W) Hurricane Shoals Park Dr ± paved (60 R/W) Sewer: Hwy. 98 just east of I-85, 10 main Water: Hwy. 98, 10 main Supplied by City of Cummings can go to Gas: 6 if desired City of Commerce (MEAG), Jackson EMC or Electricity: GA Power (customer choice) Bana Industrial Blvd. (proposed) Norfolk Southern Railroad: Owner: 13,000± LF; Joint effort by future developer and Jackson County Runs along northern R/W boundary of Hwy.98 Commerce Land Holdings, LLC & Commerce Land Holdings II, LLC 2

3 SITE SURVEY 570± ACRES TOTAL C&W SIGNAGE INDUSTRIAL DEVELOPMENT OPPORTUNITY 570± ACRES TRACTS 7 & 8 (6± ACRES) AVAILABLE C&W SIGNAGE 3

4 ATLANTA INDUSTRIAL MARKET 4

5 INDUSTRIAL DEVELOPMENT OPPORTUNITY 570± ACRES The Atlanta MSA is home to a population of 5.3 million people, making it the 9th largest US city. The market is one of the six core distribution markets in the US, along with Los Angeles, Chicago, Dallas, New Jersey, and Eastern Pennsylvania. Ranked 4th in the nation for logistics-based employment, Atlanta offers long-term, growth-oriented fundamentals, including a centralized location, quality business climate, and access to a large, well-educated employment base. In addition, 23 of the top 25 US-based third-party logistics providers have locations in the Atlanta metro area, making it a distribution hub for all major overnight package delivery companies, including UPS (headquartered in Atlanta) and FedEx. Atlanta is also home to Georgia Tech s renowned Supply Chain & Logistics Institute, a key source of technology and engineering research for the modern logistics era. AN ABSORPTION LEADER Atlanta currently leads the nation in year-to-date net absorption As of 2014 mid-year, Atlanta s net absorption totalled 8.9 MSF Absorption up 213% compared to the 2013 pace currently in the market for space. The challenge will be the lack of availability of large blocks of space in existing buildings, which we believe will not only continue to translate into a pickup in build-to-suit activity, but will also lead to a pickup in speculative construction activity in the near future. STATS ON THE GO Overall Vacancy Direct Asking Rents (psf/yr) YTD Leasing Activity OVERALL RENTAL VS. VACANCY RATES $4.00 $3.90 Q Q Y-O-Y CHANGE 9.1% 8.4% -0.7pp $3.71 $ % 8,265,589 9,184, % 12 MONTH FORECAST 15.0% 12.0% VACANCY DECLINE Current vacancy at 8.4% Vacancy down 70 bps compared to 9.1% one year ago Vacancy down 330 bps from peak in 2011 RECOVERING RENTAL RATES Current net average asking rents at $3.90 PSF as of 2Q14 Rents up 3.8% from 2013 year-end and 6.1% year-over-year psf/yr $ % $ % $ % $ % Q2 14 OVERALL NET RENTAL RATE OVERALL VACANCY RATE HEALTHY LEASING ACTIVITY Leasing activity for 2Q14 totalled 4.0 MSF, adding to the year-to-date total of 9.2 MSF Leasing activity up 11.1% from the 2013 pace. OVERALL OCCUPIER ACTIVITY DEVELOPMENT PICKING UP 11 major projects (both build-to suit and speculative) currently under construction totalling 5.8 MSF OUTLOOK As the overall economy in the Atlanta metro area continues continues to grow, which includes several large users msf YTD LEASING ACTIVITY USER SALES ACTIVITY 5

6 NORTHEAST INDUSTRIAL MARKET STATS 6

7 INDUSTRIAL DEVELOPMENT OPPORTUNITY 570± ACRES With more than a quarter of Atlanta s total industrial inventory, the 120,000,000± SF I-85/Northeast industrial submarket is the largest in the metropolitan area. A perennial location along I-85 one of the strongest population growth corridors in the US and a major distribution route serving New England and the Northeast. With a diverse mix of industrial product and tenants, the I-85/Northeast submarket consistently posts some of the strongest leasing activity and highest warehouse rental rates in Atlanta. RECOVERING RENTAL RATES Current average warehouse/distribution quoted rental rate of $3.91 PSF Current rents +/- 7% below peak time since the downturn, rents are poised to increase in the foreseeable future DRAMATIC RECENT VACANCY DECLINE 8.5% current vacancy rate as of 2Q14 market statistics Lowest vacancy rate since 2001 ATLANTA S ABSORPTION LEADER 7.3 MSF of positive absorption over the past four and a half years, the largest percentage of absorption posted for the entire Atlanta market Submarket has fully re-absorbed all of the space given back in the downturn No existing options greater than 500,000 SF available in the submarket 7

8 ONE OF THE LAST KEY QUADRANTS Commerce 4 C Subject Property EXIT EXIT Jefferson EXIT EXIT Braselton 15 EXIT RECENTLY ANNOUNCED SPEC BUILDINGS ON MAP (next page) AREA # 3 8 BUILDING TENANT NAME IDI / Gazeley Unknown LOCATION E Jackson DATE LEASE LEASED TYPE 2Q 2015 Delivery New Spec. LEASED SF 840,000 to be leased

9 INDUSTRIAL DEVELOPMENT OPPORTUNITY 570± ACRES MAJOR SURROUNDING DISTRIBUTION BUILDINGS AREA # # ON MAP (next page) BUILDING LOCATION OWNER YEAR BUILT SF % LEASED AS OF JULY Commerce / I-85 Business Park E Jackson Hillwood , % Raco Parkway - Building E E Jackson Hillwood ,004, % Raco Parkway - Building F E Jackson Exeter , % 3 4 Aldi Distribution Center E Jackson Aldi Inc , % 2 5 Valentine Farms Distribution Center E Jackson First Industrial , % Hog Mountain Road - Building A E Jackson LaSalle , % 2 7 TigerDirect.com Distribution Center E Jackson LaSalle , % Braselton Parkway Braselton Duke ,061, % Braselton Parkway - Building J Braselton Duke , % 1 10 Haverty Furniture Distribution Center Braselton UBS , % 1 11 Bed, Bath & Beyond Braselton BB&B , % 1 12 Braselton Distribution Center Braselton Hardie RE Group , % 1 13 Braselton Business Park - Quad II Braselton Duke , % 1 14 Quad I Highway 124 Braselton USAA , % TOTAL/WTD AVG - 9,789,011 97% MAJOR RECENT LEASE TRANSACTIONS AREA # # ON MAP (next page) BUILDING TENANT NAME LOCATION DATE LEASED LEASE TYPE LEASED SF 1 A 625 Braselton Parkway Carter s Braselton 2Q 2012 New 1,061,663 4 B Commerce / I-85 Business Park Ollie s Bargain Outlet E Jackson 4Q 2013 New 962,280 3 C Jackson Distribution Center TJX Industries E Jackson 1Q 2014 New (BTS) 826,972 1 D Braselton Distribution Center Hitachi Koki USA Braselton 1Q 2014 New 544,838 3 E McClure Industrial Boulevard Kubota Tractor E Jackson 3Q 2013 New 486,000 1 F Braselton Business Park - Quad II Mizuno USA, Inc. Braselton 1Q 2014 New 420,570 9

10 EXISTING DEVELOPMENT SOUTH OF SUBJECT PROPERTY AREA 1 BRASELTON Braselton Pkwy Braselton Pkwy - Bldg J 10. Haverty Furniture Distribution Center «Downtown Braselton D 12 Highway EXIT Bed, Bath & Beyond 12. Braselton Distribution Center A Braselton Business Park Quad II Highway Quad I 85 EXIT 129 Highway 53 A. Carter s (1,061,663 sf) D. Hitachi Koki (544,838 sf) F. Mizuno USA (420,570 sf) «F AREA 2 JEFFERSON 5 5. Valentine Farms Distribution Center Hog Mountain Rd - Bldg A 7. TigerDirect.com EXIT Highway

11 INDUSTRIAL DEVELOPMENT OPPORTUNITY 570± ACRES AREA 3 JEFFERSON Raco Pkwy - Bldg. E Raco Pkwy - Bldg F 4. Aldi Distribution Center C. TJX Industries (826,972 sf) C 2 3 E. Kubota Tractor (486,000 sf) IDI Gazeley (840,000 sf) «E Highway 82 EXIT 140 Subject Property ««4 85 AREA 4 COMMERCE 1. Commerce 85 - Ollie s Distribution Center Highway 98 B 1 EXIT Subject Property B. Ollie s Outlet (962,280 sf) EXIT 149 Highway

12 SUPERIOR TRANSPORTATION ACCESS 12

13 INDUSTRIAL DEVELOPMENT OPPORTUNITY 570± ACRES STRATEGIC INTERSTATE SYSTEM Critical access provided by three major interstate highways (I-75, I-85, and I-20), Atlanta s perimeter highway (I-285), and three regional interstate roadways (I-675, I-575, and I-985) major interstate systems Trucks originating in Atlanta can reach 80% of the nation s largest consumer markets within two delivery days Area consistently ranked as a Five Star Logistics Quotient location - currently 12th out of 362 metro areas in the nation. 11% of the U.S. intermodal volume travels to or through the region - expected to grow to 13%. Access to two Class I railroads (Norfolk Southern and CSX) and four short-haul railroads. Four intermodal yards within 90 miles Atlanta is the 4th largest intermodal freight operation in the U.S. Well-positioned to provide inland distribution from two major east coast ports (Charleston and Savannah). Congestion free connection to the ports via the newly expanded four-lane Route 441, linking I-85, I-20, and I-16 east of Metro Atlanta. ESSENTIAL AIR SERVICE ranked as the world s busiest airport by passenger volume Ranked 11th in the US and 28th in the world for cargo volume Served by more than 50 passenger and cargo airlines new Maynard H. Jackson, Jr. International Terminal a $1.4 billion project completed in 2012 CRITICAL RAIL NETWORK CONNECTION Unsurpassed class I rail access with numerous CSX and Norfolk Southern rail lines and intermodal shipping yards throughout the metropolitan area Atlanta is an ideal central location for the growing volume Savannah and Port of Charleston FASTEST GROWING EAST COAST PORT Georgia s ports set a tonnage record during FY 2014 which just ended 6/30/14 with 29.4 million tons of freight moved, up 8% over the previous year The Port of Savannah handled a record 3.14 million TEUs in Atlanta is a three-hour drive to the Port of Savannah, one of the fastest growing deep-water ports on the US east coast The Port of Savannah is the third largest port by container volume behind only LA and NY/NJ First major east coast port of service outside of Florida for ships moving from Asia via the Panama Canal Daily CSX and Norfolk Southern rail services direct to Atlanta s intermodal network 13

14 DOWNTOWN COMMERCE 98 EXIT 147 Ollie s Southeast Distribution Center COMMERCE 85 BUSINESS PARK EXIT

15 85 LOCAL AMENITIES Subject Property 15

16 FOR MORE INFORMATION, CONTACT: RON WILLINGHAM Senior Director (404) MATT HAWKINS Senior Director (404) PIERCE OWINGS Director (404) Ivan Allen Jr. Boulevard, Suite 700 Atlanta, Georgia (404) All data, maps, descriptions, depictions and other information provided in this or any related materials for the property is provided for graphic illustration and general informational purposes, only, and is not to be relied upon by any prospective purchaser. The property is offered only as is, where is, without any representation or warranties whatsoever, express or implied, and is not based upon the accuracy of any information provided herein or otherwise on behalf of seller with respect to the property. All prospective buyers shall be required to conduct their own due diligence investigation and to verify any and all information and data deemed material to such buyer in connection with the potential purchase of the property, including, without limitation, any and all acreage, building size, or other calculations which are subject to the buyer s own inspection, survey, or other due diligence The seller also reserves all rights to withdraw all or any portion of the property from the listing at any time, without notice, and to