Two Great SBA Loan Programs

"If you are looking for a loan to purchase a warehouse and you plan to occupy it, you should take a look at the SBA program. They have very attractive rates and a low down payment. You have a choice of two different programs and Jennifer Hall provided me with an overview of the program. If you have any questions give Jennifer a call as she is a wonderful resource."

- Charlie King

See the details and then call...

Jennifer Hall
First Vice President, Commercial Banking
SunTrust Banks, Inc.
Tel: 678-526-6831 Mobile: 404-308-7658

Action Accelerates Activity - 1st Quarter 2011

As we embark on a new year, King Industrial Realty introduces a new format for our Point of View. In 1988, when we began tracking the industrial market, our records held an inventory of 200 million square feet in the metro Atlanta area. As time progressed, not only did the square footage of that inventory grow, but the geographic area holding that inventory continued to stretch beyond the boundaries of our original 12 counties.

Beginning with this issue of the Point of View, our reporting has expanded to include 20 counties and over 600 million square feet. With this expansion, new regions have been created which are detailed on the map on page four. We feel confi dent that the addition of these outlying counties will provide you a broader and more accurate picture of the Atlanta industrial market.

This quarter, in particular, shows the effect the addition of these geographic areas has on the overall picture for the industrial market. The sublease offering of the 1.3 million square foot Solo Cupspace in Walton County accounts for the large majority of the negative net absorption recorded in this first quarter of 2011. While it would be nice to take this factor out of the equation, the broader picture is more complete when all aspects are brought into play.

With net absorption still in negative territory at -1,484,869 square feet, it’s hard to say we are climbing out of the trench dug over the past four years. However, there are a few positive indicators we want to keep our eyes on. The first quarter 2011 activity of 12,082,742 square feet represents a 46 percent increase over the previous quarter and is the highest level seen since the third quarter of 2008. We are interpreting this as a sign tenants are moving off the fence and making decisions that they may have been postponing in the past.

We have also noticed that lease terms are beginning to increase. In the first quarter of 2011, 25 percent of new leases executed in the King Industrial Realty offices were for a term of five years and longer. This percentage is up from 11 percent during the first quarter of 2009 and up from 12 percent in the first quarter of 2010. Additionally, we saw a 25 percent increase in the number of new leases executed in the first quarter of 2011 as compared to the same period last year.

Again, an indication that tenants are taking action and locking in on favorable market conditions. Although we did not expect to see positive net absorption in the first quarter of 2011, we are optimistic that within the next quarter or two we will begin to see a shift to positive net absorption.

Submarket trends and summaries can be downloaded instantly here.

Sim F. Doughtie, CCIM, SIOR, MCR
President

Owner Occupied Bank Rates

"If you are looking to purchase a warehouse for your use, you need to consider acting before the rates go up. Below is the most recent rate sheet for owner occupied properties from IronStone Bank." - Charlie King

Owner Occupied Commercial Real Estate

We distinguish ourselves in the market by being relationship driven, competitively priced, and firmly committed to exceptional service.

*** Rates as of February 15, 2011 (subject to change) ***


Take advantage of any of these great features for new construction:

· Single loan and single closing for both construction and permanent phases.
· Interest only during construction phase
· Option to lock rate at the front end for both the construction and permanent loan.
· SBA loans available

* Normal credit approval applies. Loan rates are effective as of 2-15-11 and are subject to change. Actual APR may be impacted by fees, rates, loan amounts, and terms.
* For loan requests less than $500,000 add 25 bps

For more information, please call:



Joe Bennett
Vice President
Business Banking
678.494.8652 Office
404.374.7374 Cell
678.494.8667 Fax
joseph.bennett@ironstone.com

Atlanta Industrial Real Estate Market Trends - 4th Quarter 2010

Less Is More

Activity in the Metro Atlanta area tumbled in the fourth quarter of 2010. Down
30 percent (almost three million square feet) from the third quarter 2010 total,
activity of 7,000,261 square feet is the lowest seen in the 12 county metro area since
the second quarter of 2009. That being said, seven of the 12 sub-markets examined
for this report actually saw an increase in activity. The decrease in activity for the
remaining five sub-markets, however, was overwhelming.

Activity in both the I-85 North and the Airport/Clayton & Henry County sub-markets
dropped more than a million square feet each. Yet, amazingly, these two sub-markets
still recorded positive net absorption. Two other sub-markets, Gwinnett/North Fulton
County and City of Atlanta South of I-20, also recorded positive net absorption. Again,
Gwinnett/North Fulton County accomplished this feat despite a 50 percent reduction in
activity.

The flip side of this coin is the Fayette/Coweta County sub-market. This sub-market
saw a 130 percent increase in activity; nevertheless, it fell to negative net absorption.
Furthermore, the -50,341 square feet recorded was far deeper than that seen in the third
quarter number of -142 square feet.

While a decrease in activity is always disappointing, this quarter’s results prove that
success depends on more than just deals consummated. Net absorption for the fourth
quarter of 2010 came in at -294,602 square feet . . . the best Metro Atlanta has seen in
over two years.

Of course, the offset to activity in the net absorption equation is the amount of space
returned to the market and that was the distribution sector’s saving grace. Those same
sub-markets that dropped so significantly in activity were successful in keeping more of
their tenants in place. In the fourth quarter, Gwinnett/North Fulton County returned half
the amount of space given back to the market during the third quarter.

Although the Atlanta distribution sector has certainly seen fluctuations in activity over
the past three years, those deviations alone are not responsible for the lows in the net
absorption suffered. With any luck, the increase in tenant stability we experienced at
the close of 2010 will continue as we begin a new year and, hopefully, will usher in
a return to positive net absorption.

Submarket trends and summaries can be downloaded instantly here

Wilson S. Covington
Senior Vice President

Get your company's associates to help with cash, even though they DON'T have direct cash responsibilty! My great mentor and former boss, Red Scott, very cogently observed that "cash ain't cash unless it's cash." What he always meant is that a promise to be paid or a check or a banker's promise or any other substitute is not really cash. You can run out of cash too easily by relying on those assumed, supposed, or "promised" cash sources.

As a result, we need to get EVERYONE around us to turn their actions, activities and thoughts toward real cash! Get your operations, marketing, sales, support, and service people to re-evaluate what they do and it's impact on cash. Get them to understand whether what they do and spend really contributes, or doesn't, to cash; are those things really necessary? Do they contribute more cash than they use? Talk frequently to your associates about this.

Do let them know we're okay, but need to focus on cash due to the long-delayed recovery. Get them to FORECAST where they're going, and how it impacts cash. Get your people to forecast more accurately, and to begin forecasting if they haven't in the past. This alone can change your cash situation. Get them to look at the "Forecaster" and "Cash Manager" tools at www.ceotools.com (scroll down through New Tools Catalog to those tools).

By simply creating cash awareness, your cash will improve! Pretty simple concept: just get your people and associates (including employees, suppliers and supporters) to think a bit more about how what they do affects cash!

It's now clear we're facing a very long, cash-crunching delay in the world economic recovery, so please prepare now for cash improvement through your associates' actions.

With very best regards,
Kraig Kramers
President & CEO -- CEO Tools, Inc. www.ceotools.com
info@ceotools.com www.ceotools.com/blog
Copyright © 2010 Corporate Partners Inc.

Industrial Real Estate Market News 2nd Qtr 2010 - Tick Tock

Atlanta Industrial Real Estate Market Trends 2nd Quarter 2010 The Atlanta distribution market now sits with 21 percent of its 512 million square foot inventory available for lease or for sale. Since the official onset of this latest recession in December of 2007, 30 million square feet have been added to the availability column. The current 107 million square feet available represents a 38% increase over the available square footage before the recession began.

Take into consideration that spec construction accounts for a mere three million square feet of that shift in availability and we’re looking at 27 million square feet returned to the market in the 10 quarter period since the recession began. The slow down in spec construction has reduced the percentage of new space to only eight percent – significantly down from the 19.4 percent seen at the end of 2007.

It’s also interesting to note that approximately 10 percent of all available space is on the market as a sublease opportunity. We are likely to see rates being held artificially low as long as this level of sublease space remains on the market.

Although, in a statement released in April, the National Bureau of Economic Research agreed that most economic indicators had turned up, they thought it premature to announce an end to the recession. Our analysis of the Atlanta industrial market also shows signs of hope as the downward trend appears to be slowing.

In looking at the 10 quarters endured during this recession, net absorption has averaged –2,833,792 square feet. Second quarter 2010 net absorption came in at –1,829,349 square feet; negative, but better than the average we have seen. Activity held steady at 8,575,662 square feet this quarter; right in line with the 8,892,958 square foot average during this recession. With activity holding and net absorption improving, it is a sign that the upheaval in tenant stability may be subsiding.

The trends appear to show a beginning of the end of this difficult cycle. Historically, the industrial real estate market recovers 18 months after the end of a recession. The bottom line is that tenants and buyers continue to have many opportunities . . . but the clock is ticking.

Submarket trends and summaries can be downloaded instantly here