Post on 17-Dec-2015
King Industrial King Industrial RealtyRealty
Atlanta Industrial Market Second Quarter
2003
Atlanta Industrial Market Second Quarter
2003
The Atlanta Industrial The Atlanta Industrial MarketMarketThe Atlanta Industrial The Atlanta Industrial MarketMarket
• PinPointPinPointsmsm TechnologyTechnology– 12 market areas12 market areas– 13,064 users13,064 users– 8,094 buildings8,094 buildings– 427 million sq. 427 million sq.
ft. ft. of distributionof distribution
• PinPointPinPointsmsm TechnologyTechnology– 12 market areas12 market areas– 13,064 users13,064 users– 8,094 buildings8,094 buildings– 427 million sq. 427 million sq.
ft. ft. of distributionof distribution
Behind KIR Team Behind KIR Team Behind KIR Team Behind KIR Team • Twenty three years• PinPoint Database
– Custom designed– Inventory every quarter– Shared information by everyone
• Atlanta’s industrial experts – 2,852 deals since 1995– 41.1 million sq. ft. of Lease and Sales – 3,200 acres of land
• Twenty three years• PinPoint Database
– Custom designed– Inventory every quarter– Shared information by everyone
• Atlanta’s industrial experts – 2,852 deals since 1995– 41.1 million sq. ft. of Lease and Sales – 3,200 acres of land
Defining TermsDefining TermsDefining TermsDefining Terms
• Availability – Vacant or available space
• Activity – Square feet of signed leases
• Net Absorption – Net results of activity (calculated by
spaces vacated and spaces leased)• Deals
– Actual number of transactions
• Availability – Vacant or available space
• Activity – Square feet of signed leases
• Net Absorption – Net results of activity (calculated by
spaces vacated and spaces leased)• Deals
– Actual number of transactions
Market Inventory: 1994-Market Inventory: 1994-20032003Market Inventory: 1994-Market Inventory: 1994-20032003
1994-2 1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-21994-2 1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2
275275
427427
Total InventoryTotal Inventory
13.0%13.0%18.9%18.9%VacancyVacancy
In M
illio
ns
In M
illio
ns
Numbers total 4 quarters to end of current quarterNumbers total 4 quarters to end of current quarter
Absorption and ActivityAbsorption and ActivityAbsorption and ActivityAbsorption and Activity
1994-2 1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2
ActivityActivity33.833.8
7.97.9AbsorptionAbsorption
-4.0-4.0
32.732.7
In M
illio
ns
1994-2 1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-21994-2 1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2
In M
illio
ns
33.033.0
68.368.3
Total Used Space
Total Used Space
2.62.612.612.6
New SpaceNew Space
New/Used Space New/Used Space AvailabilityAvailabilityNew/Used Space New/Used Space AvailabilityAvailability
Numbers total 4 quarters to end of current quarterNumbers total 4 quarters to end of current quarter
New Construction: 1994-New Construction: 1994-20032003New Construction: 1994-New Construction: 1994-20032003
1994-2 1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-21994-2 1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2
6.9
6.9 3.73.7
New Construction
New Construction
Build-to-SuitBuild-to-Suit 1.71.74.3
4.3
In M
illio
ns
164
237269 264247
1998-2 1999-2 2000-2 2001-2 2002-2 2003-2
164
237269 264247
1998-2 1999-2 2000-2 2001-2 2002-2 2003-2
Buildings with New Buildings with New SpaceSpaceBuildings with New Buildings with New SpaceSpace
35.4
35.4 29.629.6 27.327.3 25.925.9 20.720.7 15.515.5
248248
Deals CompletedDeals CompletedDeals CompletedDeals Completed
40407070201201
2828 1616
1387
1387
Under 19,999 SF
Under 19,999 SF
20,000 - 39,999 SF20,000 - 39,999 SF
40,000 - 59,999 SF40,000 - 59,999 SF
60,000 - 79,999 SF60,000 - 79,999 SF
80,000 - 99,999 SF80,000 - 99,999 SF
100,000 & Up
100,000 & Up
Numbers total 4 quarters to end of current quarterNumbers total 4 quarters to end of current quarter
In M
illi
on
sIn
Mil
lio
ns
1.41.4
5.55.5
3.33.3
1.91.9
8.98.99.09.0
Square Feet LeasedSquare Feet LeasedSquare Feet LeasedSquare Feet Leased
Under 19,999 SF
Under 19,999 SF
20,000 - 39,999 SF20,000 - 39,999 SF
40,000 - 59,999 SF40,000 - 59,999 SF
60,000 - 79,999 SF60,000 - 79,999 SF
80,000 - 99,999 SF80,000 - 99,999 SF
100,000 & Up
100,000 & Up
Numbers total 4 quarters to end of current quarterNumbers total 4 quarters to end of current quarter
Distribution Hot Distribution Hot MarketsMarketsDistribution Hot Distribution Hot MarketsMarkets
AbsorptionAbsorption
66.7%66.7%66.7%66.7%
3.7%3.7%3.7%3.7%
26.5%26.5%26.5%26.5%
Percentage of the market's positive net absorption Numbers total 4 quarters to end of current quarter
Distribution Hot Distribution Hot MarketsMarketsDistribution Hot Distribution Hot MarketsMarkets
AbsorptionAbsorption
26.5%26.5%26.5%26.5%
3.7%3.7%3.7%3.7%
66.7%66.7%66.7%66.7%ActivityActivity19.6%19.6%19.6%19.6%
14.1%14.1%14.1%14.1%
14.6%14.6%14.6%14.6%
Numbers total 4 quarters to end of current quarter
Distribution Hot Distribution Hot MarketsMarketsDistribution Hot Distribution Hot MarketsMarkets
AbsorptionAbsorption
66.7%66.7%66.7%66.7%
26.5%26.5%26.5%26.5%
3.7%3.7%3.7%3.7%
ActivityActivity19.6%19.6%19.6%19.6%
14.1%14.1%14.1%14.1%
14.6%14.6%14.6%14.6%
Available UsedAvailable Used
19.0%19.0%19.0%19.0%
11.7%11.7%11.7%11.7%19.1%19.1%19.1%19.1%
Distribution Hot Distribution Hot MarketsMarketsDistribution Hot Distribution Hot MarketsMarkets
AbsorptionAbsorption
26.5%26.5%26.5%26.5%
3.7%3.7%3.7%3.7%
66.7%66.7% 66.7%66.7%ActivityActivity 19.6% 19.6% 19.6% 19.6%
14.1%14.1%14.1%14.1%
14.6%14.6%14.6%14.6%
Available UsedAvailable Used
19.0%19.0%19.0%19.0%
19.1%19.1%19.1%19.1%11.7%11.7%11.7%11.7%
17.9%17.9%Available NewAvailable New
27.2%27.2%
19.5%19.5%
Future - Industrial Real Future - Industrial Real EstateEstate
• Infrastructure• Trends to keep
us on top:- Trucking deregulation- Railroad consolidation- Population
• Infrastructure• Trends to keep
us on top:- Trucking deregulation- Railroad consolidation- Population
S.E. Distribution S.E. Distribution Centers Centers
• AtlantaAtlanta• BirminghamBirmingham• CharlotteCharlotte• MiamiMiami• MemphisMemphis• NashvilleNashville• JacksonvilleJacksonville• TampaTampa
• AtlantaAtlanta• BirminghamBirmingham• CharlotteCharlotte• MiamiMiami• MemphisMemphis• NashvilleNashville• JacksonvilleJacksonville• TampaTampa
(million sq. ft.)(million sq. ft.)(million sq. ft.)(million sq. ft.)
427 427 88 88
110 110 186186158158170170
7474112112
427 427 88 88
110 110 186186158158170170
7474112112
Source: SIOR Comparative Statistics, Source: SIOR Comparative Statistics, 2001/20022001/2002Source: SIOR Comparative Statistics, Source: SIOR Comparative Statistics, 2001/20022001/2002
TransportationTransportation
• By Sea: 50 carriers/160 companies• By Rail: 5,200 miles of rail• By Road: 2,285 miles of interstate• By Air: 27 air cargo carriers• With Data: 14 fiber optic networks
• By Sea: 50 carriers/160 companies• By Rail: 5,200 miles of rail• By Road: 2,285 miles of interstate• By Air: 27 air cargo carriers• With Data: 14 fiber optic networks
Trucking DeregulationTrucking DeregulationTrucking DeregulationTrucking Deregulation
• Number of Trucking Companies - from 10,000 to 450,000
• Driver Shortage• Maximum Distance
= 400 miles• 3rd Party Logistics
Fulfillment Centers
• Number of Trucking Companies - from 10,000 to 450,000
• Driver Shortage• Maximum Distance
= 400 miles• 3rd Party Logistics
Fulfillment Centers
Railroad ConsolidationRailroad ConsolidationRailroad ConsolidationRailroad Consolidation• # Class 1 Railroads
– 36 in 1980– 4 in 2000 (2 in
Canada)
• Intermodal yards:– Austell, GA– Harrisburg, PA– Chicago, IL
• Selling Time Not Cost
• # Class 1 Railroads– 36 in 1980– 4 in 2000 (2 in
Canada)
• Intermodal yards:– Austell, GA– Harrisburg, PA– Chicago, IL
• Selling Time Not Cost
Atlanta: Center of Atlanta: Center of Distribution Distribution Atlanta: Center of Atlanta: Center of Distribution Distribution
Source: U. S. Census Source: U. S. Census
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
PopulationPopulation
AtlantaAtlanta
Regional Distribution Regional Distribution Centers Centers Regional Distribution Regional Distribution Centers Centers
Source: U. S. Census Source: U. S. Census
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
AtlantaAtlanta
E. Pennsylvania
E. Pennsylvania
PopulationPopulation
Regional Distribution Regional Distribution Centers Centers Regional Distribution Regional Distribution Centers Centers
Source: U. S. Census Source: U. S. Census
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
AtlantaAtlanta
ChicagoChicago
E. Pennsylvania
E. Pennsylvania
PopulationPopulation
Regional Distribution Regional Distribution Centers Centers Regional Distribution Regional Distribution Centers Centers
Source: U. S. Census Source: U. S. Census
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
AtlantaAtlanta
DallasDallas
ChicagoChicago
E. Pennsylvania
E. Pennsylvania
PopulationPopulation
Regional Distribution Regional Distribution Centers Centers Regional Distribution Regional Distribution Centers Centers
Source: U. S. Census Source: U. S. Census
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
Under 1 Million
1- 5 Million
5-10 Million
10-20 Million
21 Million & Up
AtlantaAtlanta
DallasDallasLos AngelesLos Angeles
ChicagoChicago
E. Pennsylvania
E. Pennsylvania
PopulationPopulation
ConclusionConclusionConclusionConclusion• Transportation infrastructure
• Largest industrial inventory in southeast
– 427,000,000 sq. ft.
• Trends- Trucking deregulation- Railroad consolidation
- Population
• Transportation infrastructure
• Largest industrial inventory in southeast
– 427,000,000 sq. ft.
• Trends- Trucking deregulation- Railroad consolidation
- Population