Low vacancy rates encourage new industrial construction

Low vacancy rates in the industrial market are encouraging new projects to advance to construction. Some of these projects include Greenwood 75, Gardner Logistics Park and the first building at River Park.

The Atlanta industrial market is experiencing historically low vacancy rates. According to quarterly reports published by Cushman & Wakefield, the region’s vacancy rate was 4.4% at the end of June. The region is also experiencing record high new construction. More than 21.6 million square feet is presently under construction.

Buildings are often under lease before their completion, such as Greenwood Site 500. The new 485,000 sq ft building was recently leased by Big Lots for a distribution center. Elsewhere in McDonough, Georgia-Pacific leased 250k sq ft off highway 42. The company is expanding its manufacturing footprint for curbside recyclable paper padded mailers. The move will support growing demand for more sustainable shipping envelopes.

Greenwood 75

Greenwood 75 is a new project under construction off Greenwood Place. When complete, the building will measure 1,001,700 square feet. At the time of publication, work crews are close to finishing the exterior walls.

The building features a 40’ interior clear height. The site will include 300 auto parking spaces and 255 trailer spaces. Colliers International is handling leasing info.

Gardner Logistics Park

Scannell Properties of Indianapolis continues to move forward with construction at Gardner Logistics Park. Phase I of the development is complete off highway 42 in Locust Grove. Tenants such as Home Depot and Radial occupy the space.

Love’s Truck Stops recently opened the first building in phase II. Now, construction is in progress on the remaining two buildings. They measure 234,200 square feet and 678,000 sq ft, respectively. Cushman & Wakefield is leasing the project.

In addition, the company gained zoning approval for phase III in May. They plan to break ground later this fall on the 1.2 million square feet building.

Cubes at River Park

Finally, the first building at River Park will soon start construction. River Park is a master-planned 1,200-acre development off I-75 and Georgia 16. Butts and Spalding County officials rezoned the property in 2019. Site prep work has been underway since shortly thereafter.

CRG, the real estate development and investment arm of Chicago-based Clayco, will build a 1 million square foot building at the site. They expect to start construction in November then finish the project in the third quarter 2022. The building is known as the Cubes at River Park.

The building will be the first of many within River Park. The master plan calls for up to 18 MSF of industrial space. There’s also space for 800,000 square feet of commercial development.

Featured image shows concept rendering for Gardner Logistics Park. Photo credit Scannell Properties.