Atlanta Industrial Market Second Quarter 2004

Atlanta Industrial Market Second Quarter 2004

The Atlanta Industrial MarketThe Atlanta Industrial Market

• PinPointPinPointsmsm TechnologyTechnology– 12 market areas12 market areas– 16,482 users16,482 users– 9,898 buildings9,898 buildings– 438 million sq. 438 million sq.

ft. ft. of distributionof distribution

• PinPointPinPointsmsm TechnologyTechnology– 12 market areas12 market areas– 16,482 users16,482 users– 9,898 buildings9,898 buildings– 438 million sq. 438 million sq.

ft. ft. of distributionof distribution

Behind KIR Team Behind KIR Team

• Twenty four years• PinPoint Database

– Custom designed– Inventory every quarter– Shared information by everyone

• Atlanta’s industrial experts – 3,428 transactions since 1995– 48.9 million sq. ft. of Leases and Sales – 3,601 acres of land

• Twenty four years• PinPoint Database

– Custom designed– Inventory every quarter– Shared information by everyone

• Atlanta’s industrial experts – 3,428 transactions since 1995– 48.9 million sq. ft. of Leases and Sales – 3,601 acres of land

Defining 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: 1995-2004Market Inventory: 1995-2004

1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-21995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-2

296296

438438

Total InventoryTotal Inventory

11.9%11.9%18.6%18.6%

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 Activity

1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-2

ActivityActivity

39.039.0

15.3

15.3 AbsorptionAbsorption 4.04.0

34.234.2

In M

illio

ns

1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-21995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-2

In M

illio

ns

26.626.6

69.869.8

Total Used Space

Total Used Space

8.88.8 11.711.7New SpaceNew Space

New/Used Space AvailabilityNew/Used Space Availability

Numbers total 4 quarters to end of current quarterNumbers total 4 quarters to end of current quarter

New Construction: 1995-2004New Construction: 1995-2004

1995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-21995-2 1996-2 1997-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-2

13.2

13.2 7.27.2

New Construction

New Construction

Build-to-SuitBuild-to-Suit3.43.4

4.0

4.0

In M

illio

ns

Deals CompletedDeals Completed

454598982082083737 2

020

1425

1425

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

1.81.8

5.75.74.74.7

2.42.4

12.812.8

9.69.6

Square 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 MarketsDistribution Hot Markets

AbsorptionAbsorption

17.1%17.1%17.1%17.1%

17.7%17.7%17.7%17.7%

42.2%42.2%42.2%42.2%

Percentage of the market's positive net absorption Numbers total 4 quarters to end of current quarter

Distribution Hot MarketsDistribution Hot Markets

AbsorptionAbsorption

42.2%42.2%42.2%42.2%

17.7%17.7%17.7%17.7%

17.1%17.1%17.1%17.1%ActivityActivity22.4%22.4%22.4%22.4%

13.1%13.1%13.1%13.1%

21.0%21.0%21.0%21.0%

Numbers total 4 quarters to end of current quarter

Distribution Hot MarketsDistribution Hot Markets

AbsorptionAbsorption

17.1%17.1%17.1%17.1%

42.2%42.2%42.2%42.2%

17.7%17.7%17.7%17.7%

ActivityActivity23.2%23.2%23.2%23.2%

13.1%13.1%13.1%13.1%

21.0%21.0%21.0%21.0%

Available UsedAvailable Used

18.8%18.8%18.8%18.8%

10.9%10.9%10.9%10.9%19.2%19.2%19.2%19.2%

Distribution Hot MarketsDistribution Hot Markets

AbsorptionAbsorption

42.2%42.2%42.2%42.2%

17.7%17.7%17.7%17.7%

17.1%17.1% 17.1%17.1%ActivityActivity 23.3% 23.3% 23.3% 23.3%

13.1%13.1%13.1%13.1%

21.0%21.0%21.0%21.0%

Available UsedAvailable Used

18.8%18.8%18.8%18.8%

19.2%19.2%19.2%19.2%10.9%10.9%10.9%10.9%

24.5%24.5%Available NewAvailable New

19.5%19.5%

19.6%19.6%

Transportation

• 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• Intellectual Capital

• 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• Intellectual Capital

Atlanta: Center of Distribution Atlanta: Center of 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 Centers Regional Distribution 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 Centers Regional Distribution 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 Centers Regional Distribution 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 Centers Regional Distribution 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

Developments Impacting Distribution Facilities

• Governmental Regulations - Trucking regulations

- Fire code issues

• Technological changes-RFID tracking device-Supply-chain management systems

• Governmental Regulations - Trucking regulations

- Fire code issues

• Technological changes-RFID tracking device-Supply-chain management systems

ConclusionConclusion

• Transportation infrastructure

• Largest industrial inventory in southeast

• Trends- Population Growth- Growth in Intermodal Hubs

- Governmental changes

- Technological advances

• Transportation infrastructure

• Largest industrial inventory in southeast

• Trends- Population Growth- Growth in Intermodal Hubs

- Governmental changes

- Technological advances

Q & A