Bill Randolph leased:
10,000 square foot warehouse /office located at 733 Glendale Road, Suite E, Atlanta, GA
Friday, November 20, 2009
Industrial Real Estate Market News 3rd Qtr 2009 - When will the recovery begin?
This month, I gave a presentation to the Appraisal Institute and the first slide was "don't shoot the messenger". We have hit a lot of milestones...
- Availability over 20%
- Entire city has negative absorption for the last 4 quarters
- Negative absorption hit 19 Million-- in 2001 it hit a negative 6 million.
In spite of all of the bad news we are seeing some increase in activity. I hope it lasts! Our quarterly review is below. Have a great day!
Charles B. King, Jr., SIOR, Chairman
Direct: 404.942.2005
Quarterly Review -- When Will the Recovery Begin?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
It has been a record-breaking year for the Atlanta Industrial market; however, no awards will be given out to celebrate these milestones. On the heels of a disastrous second quarter, the Atlanta Industrial market continued its freefall in the third quarter posting net absorption of -5,220,155 square feet. As a result, Atlanta now has over 100 million square feet of available space and an availability rate of 20.2 percent. Consequently, with the exception of a couple of build-to-suit projects totaling 213,548 square feet, new construction has ground to a halt. So, how did we get here? When you delve into the numbers this quarter, one of the most staggering points is that, of the 766 spaces put back on the market, less than five percent was in excess of 75,000 square feet. Thus, Atlanta's downfall can be attributed to an overwhelming number of small to midsize companies continuing to downsize or turn out the lights. The most notable exception to this fact fell in Area 70. The South Fulton county submarket took second place in activity by closing 1,488,241 square feet of deals, but ended dead last with net absorption of -1,742,641 square feet. A large part of this swing was due to Unilever offering in excess of 1 million square feet of space back to the market this quarter. We did, however, spot a few silver linings during the third quarter. Activity increased by 28 percent compared to last quarter - still below the historical average, but an increase nonetheless. Additionally, three submarkets landed in positive net absorption as compared to all submarkets in negative territory last quarter. Southside Atlanta, the Stone Mountain corridor and the Clayton/Henry counties submarkets posted positive net absorption of 365,598 square feet, 297,113 square feet and 50,757 square feet respectively. The Stone Mountain Industrial market converted 47 percent of its activity into positive net absorption and Area 60 upped the ante by converting 65 percent of its output into positive net absorption. Statistically, it is difficult to find a great deal to be optimistic about in the third quarter. Moderate activity, coupled with downsizing and/or closings, has resulted in four consecutive quarters of negative net absorption. Yet deals are still being signed. Atlanta inked 563 contracts in the third quarter of 2009. Virtually the same number of deals (543) done in the second quarter 2006 resulted in 2,235,431 square feet of positive net absorption. Proof that, if Atlanta can rein in tenant turnover and continue to generate moderate activity, the recovery process can begin.
William D. Johnston, SIOR
Senior Vice President, 404-942-2012
Submarket overviews can be downloaded from our King website.
Commercial RE Not as Bad as Predicted, Zell Says
Predictions of commercial crash ‘greatly exaggerated’ "Everyone is waiting for the grave dancer to come and exercise his magic potion," Sam Zell said, drawing laughter from a crowd at "Invest for Kids" a Chicago fund raising event yesterday. The moniker is one he took for himself as a buyer of distressed real estate. "But you need two to tango," he added. Read more... http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=36105
Thursday, November 19, 2009
Welcome & Congratulations...
Team news! Join us in welcoming Scott Thompson to our King family. Our King Suwanee office will be his home office and his area of specialization will be the Northeast submarket.
Congratulations to Jeremy Watkins and Robb Draughon in obtaining their Broker's license and for their dedication to professional development.
Congratulations to Jeremy Watkins and Robb Draughon in obtaining their Broker's license and for their dedication to professional development.
Wednesday, November 18, 2009
33,100 Sq. Ft. Sold in Armour Industrial Park
Bill Johnston, SIOR, Senior Vice President
sold 33,100 square foot warehouse / office located at 205 Armour Drive, Atlanta GA 30324 in Armour Industrial park to Magnum Companies
sold 33,100 square foot warehouse / office located at 205 Armour Drive, Atlanta GA 30324 in Armour Industrial park to Magnum Companies
Tuesday, November 17, 2009
Available: 46,00 Sq. Ft. - Northeast Submarket
46,000 +/- Sq. ft. Located At:
3625 Buford Highway, Duluth, GA 30096 a/k/a 3625 Old Peachtree Road, Duluth, GA 30096
Tel: 404-942-2040
Bill Johnston, SIOR
King Industrial Realty, Inc. / CORFAC International
Tel: 404-942-2012
3625 Buford Highway, Duluth, GA 30096 a/k/a 3625 Old Peachtree Road, Duluth, GA 30096
- On 6.99+/- Acres
- Rail Available
- 5,100 Sq. Ft. Office
- Zoned M1 Industrial
- 20' Ceiling Height
Agents:
David Richardson
King Industrial Realty, Inc. / CORFAC International
Tel: 404.942.2029
Greg M. Dickerson, SIOR
Tel: 404-942-2040
Bill Johnston, SIOR
King Industrial Realty, Inc. / CORFAC International
Tel: 404-942-2012
Wednesday, October 28, 2009
8,400 Sq. Ft. Leased - Union Hill Industrial Park
Steve Ratchford & Mike Boone leased 8,400 square foot warehouse/ office for 3 years!
Friday, October 2, 2009
1031 Tax Update (IRS disaster relief)
From our friends at Atlanta Deferred Exchange, Inc. (ADE):
The following counties in Georgia qualify for IRS disaster relief following the recent floods: Bartow, Catoosa, DeKalb, Fulton, Gwinnett, Heard, Newton, Rockdale and Walker counties. If a taxpayer who is living in one of these counties is doing a tax deferred exchange with a relinquished sale that took place before September 18, 2009 and their 45-day identification period falls between September 18th and December 17th, they should be entitled to a 120-day extension. For example, if the taxpayer closed on their relinquished sale on September 12, 2009, their 45-day identification deadline would be October 27, 2009 (which is between September 18th and December 17th). Therefore, they would be entitled to a 120-day extension which falls on February 24, 2010. It is also our understanding that the taxpayer would then get their pre-requisite additional 135 days (45 days plus 135 days equals 180 days) to complete the transaction. Of course, they would have to file an extension because you get 180 days or the date your tax return is due, whichever comes first, and April 15th would have come sooner. But if they do file an extension, it is possible they would have up until July 9, 2010 to complete the exchange. If the taxpayer's 180-day deadline falls between September 18th and December 17th, they would also get a 120-day extension from their original 180-day deadline. What is somewhat unclear is if the 45-day identification period has ended before September 18th and the 180-day acquisition period falls after December 17th as to whether or not the taxpayer would get an extension of 120 days from their original 180-day deadline. To view a copy of the IRS Notice visit: http://www.irs.gov/newsroom/article/0,,id=213657,00.html
To view Revenue Procedure 2007-56 (see Section 17) which addresses time sensitive acts, visit http://www.irs.gov/irb/2007-34_IRB/ar13.htmlA strict interpretation of this guidance would lead one to believe that you would also get a 120- day extension in this circumstance. If the taxpayer's 180-day deadline falls between September 18th and December 17th and they have decided not to complete the exchange, it might be beneficial to consider taking the 120-day extension. Under this approach, the taxpayer would not receive their proceeds from the qualified intermediary until after the beginning of the new tax year and based on the installment sale reporting approach, the tax recognized on this disbursement would not have to be reported until the 2010 tax year - just something to consider. As always, our goal is to bring you accurate and timely information that will help you make better decisions.
All the best,Ron Raitz
For more information please contact Ron Raitz, President of ADE. Email: rraitz@ade1031.com
The following counties in Georgia qualify for IRS disaster relief following the recent floods: Bartow, Catoosa, DeKalb, Fulton, Gwinnett, Heard, Newton, Rockdale and Walker counties. If a taxpayer who is living in one of these counties is doing a tax deferred exchange with a relinquished sale that took place before September 18, 2009 and their 45-day identification period falls between September 18th and December 17th, they should be entitled to a 120-day extension. For example, if the taxpayer closed on their relinquished sale on September 12, 2009, their 45-day identification deadline would be October 27, 2009 (which is between September 18th and December 17th). Therefore, they would be entitled to a 120-day extension which falls on February 24, 2010. It is also our understanding that the taxpayer would then get their pre-requisite additional 135 days (45 days plus 135 days equals 180 days) to complete the transaction. Of course, they would have to file an extension because you get 180 days or the date your tax return is due, whichever comes first, and April 15th would have come sooner. But if they do file an extension, it is possible they would have up until July 9, 2010 to complete the exchange. If the taxpayer's 180-day deadline falls between September 18th and December 17th, they would also get a 120-day extension from their original 180-day deadline. What is somewhat unclear is if the 45-day identification period has ended before September 18th and the 180-day acquisition period falls after December 17th as to whether or not the taxpayer would get an extension of 120 days from their original 180-day deadline. To view a copy of the IRS Notice visit: http://www.irs.gov/newsroom/article/0,,id=213657,00.html
To view Revenue Procedure 2007-56 (see Section 17) which addresses time sensitive acts, visit http://www.irs.gov/irb/2007-34_IRB/ar13.htmlA strict interpretation of this guidance would lead one to believe that you would also get a 120- day extension in this circumstance. If the taxpayer's 180-day deadline falls between September 18th and December 17th and they have decided not to complete the exchange, it might be beneficial to consider taking the 120-day extension. Under this approach, the taxpayer would not receive their proceeds from the qualified intermediary until after the beginning of the new tax year and based on the installment sale reporting approach, the tax recognized on this disbursement would not have to be reported until the 2010 tax year - just something to consider. As always, our goal is to bring you accurate and timely information that will help you make better decisions.
All the best,Ron Raitz
For more information please contact Ron Raitz, President of ADE. Email: rraitz@ade1031.com
Forbes magazine says Georgia is the No. 6
Forbes magazine says Georgia is the No. 6 state for doing business.
The magazine ranks all 50 states based on costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Business costs, which include labor, energy and taxes are weighted the most heavily.
Source: Atlanta Business Cronicle http://atlanta.bizjournals.com/atlanta/stories/2009/09/21/daily86.html
The magazine ranks all 50 states based on costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Business costs, which include labor, energy and taxes are weighted the most heavily.
Source: Atlanta Business Cronicle http://atlanta.bizjournals.com/atlanta/stories/2009/09/21/daily86.html
Thursday, September 3, 2009
For sale: 9,842 SF in Chattahoochee Industrial District
For Sale
9,842 Sq. Ft. Located At:
1919 Hills Avenue
Atlanta, GA 30318
Fulton County
1,600+/- Sq. Ft. Office
14' Clear Ceiling Height
3 Dock High Doors
Freestanding Building
Brick On Block
.52 Acres
Flyer
Contact: Greg M. Dickerson, SIOR, 404-942-2040
or Bill Johnston, SIOR, Tel: 404-942-2012
9,842 Sq. Ft. Located At:
1919 Hills Avenue
Atlanta, GA 30318
Fulton County
1,600+/- Sq. Ft. Office
14' Clear Ceiling Height
3 Dock High Doors
Freestanding Building
Brick On Block
.52 Acres
Flyer
Contact: Greg M. Dickerson, SIOR, 404-942-2040
or Bill Johnston, SIOR, Tel: 404-942-2012
Subscribe to:
Posts (Atom)
Posts
