Industrial Snapshot Quarter Three 2019

Drone photo of Southern Gateway at Lambert Farms (real estate photo)
New industrial space is available in McDonough. (real estate photo)

The I-75 south corridor leads the Atlanta region in new industrial space under construction, according to this quarter’s Industrial Snapshot published by Cushman & Wakefield. The company defines the I-75 South submarket as Butts County, Clayton County (excluding the area surrounding Hartsfield-Jackson International Airport), Henry County, and Spalding County.

Within this area, 4.4 million square feet (MSF) of new industrial space is under construction representing 27.5% of the overall space under construction in metro Atlanta. Projects under construction include Gardner 42 in Locust Grove, building 900 at Gillem Logistics Center in Forest Park, and site 500 in Greenwood Industrial Park.

The vacancy rate within the I-75 South submarket is 13.6%. The high rate is driven by seven buildings with at least 500,000 square feet of space available. Despite this, leasing activity remains healthy with FedEx Ground and Kroger leasing space off Anvil Block Road in Clayton County during the past quarter.

Projects completed this year include Building B at Southern Gateway at Lambert Farms (pictured above) and McDonough Commerce Center II. An additional 2.3 MSF is planned within Lambert Farms at full build-out.

Projects on the Horizon

The Locust Grove city council will consider amending the city’s future land use map and rezoning property next Monday, December 2, to support additional industrial development off Colvin Drive. The proposed Gardner Commerce Center would build a 1,251,250 square foot warehouse if approved.

The city council will also consider architectural renderings for the second building at Gardner 42. The second building is proposed to consist of 657,600 sq ft with office space located on the southeastern corner, or that corner closest to SR 42 at Marketplace Blvd.

Locust Grove started 2019 by approving the second phase of the ClayCo development off Price Drive. That project totals 343 acres parallel to I-75. Last week, Henry County abandoned a portion of Fortson Road in Hampton. The board rezoned the surrounding property in 2018 for the future construction of 6.1 million square feet of industrial space.

Further south, a rezoning request off Georgia 16 / I-75 exit 205 in Butts County proposes over 16.1 MSF across twelve-hundred acres. The Butts County BOC tabled the request in October to draft a development agreement between the county and applicant.