Top Southeastern Markets for Industrial Transactions

The U.S. industrial sector continued to show signs of deceleration during the first half of the year. Despite this overall slowdown, the Sun Belt is still generating growth, as markets in the region have maintained strong momentum. Case in point, our emerging industrial markets list featured a number metros from the Sun Belt.

Below, we’ve listed the top five Southeastern markets that led the way in industrial sales during the first four months of the year. Together, these metros generated a total of about $1.1 billion in sales—closely matching the volume recorded during the same period last year—and underscoring the region’s continued appeal to investors, according to Yardi research data.

1. Savannah, Ga.-Hilton Head, S.C.

The Savannah, Ga.-Hilton Head, S.C., metro ranked first in terms of industrial investment volume among the top five Southeastern markets, with $397 million in assets traded. Despite registering the highest volume of sales, only three assets changed hands, with the average price per square foot clocking in at $99.9.

During the same period of last year, two properties had changed hands for $108.3 million. The average price per square foot during that time was $85.3.

Earlier this year, Burlington Stores paid $205.5 million for 447 Logistics Drive, a 2.1 million-square-foot warehouse in Ellabell, Ga. VanTrust Real Estate sold the asset sitting on more than 251 acres.

2. Charlotte, N.C.

Charlotte, N.C. had $251.9 million in assets trading year-to-date through April. A total of 24 properties were sold for an average of $103.4 per square foot. During the same period of last year, 40 facilities traded for $300.9 million, with the average price per square foot clocking in at $66.9. The market also ranked in the top 10 metros nationally for industrial deliveries.

In April, Lightstone acquired a five-building, 652,647-square-foot industrial portfolio in Charlotte, and Raleigh-Durham, N.C. LM Real Estate Partners sold the assets that were 82.1 percent leased at the time.

At the beginning of the year, Reign Capital also purchased 208 North Caldwell St., a 377,678-square-foot facility. The property completed in 1927 traded for $28.1 million, about $74.5 per square foot.

3. Atlanta

Metro Atlanta’s investment sales volume year-to-date as of April clocked in at $240 million from the 18 properties that traded, Yardi research data shows. Following national trends, this marks an almost 60 percent drop from the $582.2 million registered during the same time frame last year, when 45 assets changed hands—the largest decrease from this list.

However, the metro’s silver lining is the price per square foot increase. Logistic facilities were sold for $139.2 year-to-date through April, compared to just $102.3 a year ago. One of the priciest deals in the first quarter was NTT Data’s acquisition of 1865 McFarland Parkway, a 170,400-square-foot asset in Alpharetta, Ga., for $50 million. That translates to about $293.4 per square foot.

Deals continued in the metro during the second quarter as well. Last month, Dossche Holdings sold two industrial buildings spanning almost 1.2 million square feet for $116.5 million. LX Pantos and Korea Ocean Business Corp. acquired the Dalton, Ga., facilities.

4. Winston-Salem, N.C.-Greensboro, N.C.

The Winston-Salem-Greensboro metro registered $130.3 million in sales transactions activity in the first four months of the year. A total of 17 warehouses traded for an average price per square foot of $83.1.

Compared to last year’s same period, sales volume rose by 20 percent. Between January and April 2024, the market had $66.2 million in investment volume, from the 15 properties that changed hands for $56.2 per square foot on average.

5. Raleigh, N.C.-Durham, N.C.

Rounding up the top five Southeastern markets is the Raleigh-Durham area, where 17 properties traded in the first four months of the year for $119.1 million. Despite registering the lowest sales volume among this list, the market had the highest price per square foot average, which clocked in at $151.1.

Compared to the same time frame of last year, the price per square foot rose almost $20. The total investment volume during that period was $110.4 million, with 40 assets changing hands.

One of the assets with the highest price per square foot was 1219 Shiloh Glenn Drive, a 62,355-square-foot property in Durham, N.C. Lightstone Group acquired it for $40.1 million, about $643.3 per square foot.