Car makers add jobs and spend more on expansion

According to this article, the auto industry is picking up.  Do you think expansion in the industry will lead to a notable amount of absorption in the industrial real estate market or will most of the expansion be accounted for by build-to-suits?

A link to the full article is here.

Allison Evans
Associate
King Industrial Realty

Manufacturing Is Going (to New) Places: And What That Means About Jobs

This is a good article about changes we are seeing in the manufacturing industry.  It brings up the point that because of innovations, success and growth in the manufacturing industry can no longer be measured or indicated by a growing number of manufacturing jobs.  A question the author poses is whether we should be unhappy that we are losing assembly line-type jobs or be happy with companies being able to keep higher-skilled jobs on our soil and have products that read "Made in America."  What do you think?

A link to the full article is here.

 

Allison Evans
Associate
King Industrial Realty

New plants in NW Georgia to bring a total of 2,600 jobs

Mattex, a carpet backing and textile company, has announced they will be building a new plant in northwest Georgia that will employ 200 people.  This came about a week after Engineered Floors announced plans to open two new carpet plants that are expected to employ 2,400 people in the same area.  This is all great news for northwest Georgia and it looks like the flooring industry there will continue on it's path of revitalization.  A link to the AJC's article regarding the Mattex plant is here.

Incentives offered by the Department of Economic Development are discussed in a related article.  It is said that Engineered Floors could receive over $100 million in state incentives with the opening of it's two new plants. A link to that article is here.  

Both of these projects will be build-to-suit constructions, which can make activity appear to be improving.  As we have seen in the recent past, this does not usually translate to a notable impact in net absorption.  However, these projects are likely to create a need for additional suppliers and distributors.  Then, maybe we will make a dent in our high availability rates.  How big of an impact do you think these two projects will have on the Metro Atlanta industrial real estate market?

Allison Evans

Associate

King Industrial Realty

Availability rate in Atlanta’s industrial market still high, but continues to decline

The Metro Atlanta industrial real estate market still has a long way to go on the road to recovery, but availability rates do seem to be making a slow and steady improvement.  In the first quarter of 2011 we recorded an availability rate of 21.2%, which was a record high for Atlanta’s industrial market.  The first quarter of 2013 showed an availability rate of 18.6%.  As Sim Doughtie says in our latest Point of View, “This marks the eight consecutive quarter of reduced availability – further testimony that we are moving in the right direction.”

Total amount of square feet available for new and used space at the end of the first quarter this year came to a little over 110,000,000.  This is still a long way from the lower figures we were seeing in 2008 and earlier, which were around only 80,000,000 square feet.  Hopefully we continue to see declining rates of availability in months to come.

Allison Evans

Associate
King Industrial Realty

Net Absorption in the 1st Quarter of 2013 Continues Positive Trend!

It’s been great to hear that the Metro Atlanta industrial real estate market has continued it’s slow but steady recovery into the first quarter of 2013.  I think most people were fairly pleased with absorption and activity figures for the end of 2012, however, it seemed like there was still a great deal of skepticism as to whether or not the positive trend would continue into 2013.  Now it’s looking like we can let our hopes get a little higher and be more optimistic about seeing a full recovery! 

Total net absorption in the Atlanta industrial real estate market was 672,123 square feet in the first quarter.  The three hottest markets for absorption and their share of the total market figure for absorption are as follows:

 I-20 West/Fulton Industrial = 40.7%

I-85/985/316 = 16.7%
Northwest = 14.1%
*Also worth noting was the I-85 Northeast market with 13.2% of total absorption.

Sim Doughtie states in our latest quarterly Point of View, “We have turned the corner on the worst market we have ever experienced in the Atlanta industrial arena.”  How confident do you feel that the positive trend we are seeing now will continue?

Allison Evans
Associate
King Industrial Realty