Trammell Crow and partner CBRE Global Investors, on behalf of one of its investment funds, have acquired a 287-acre development site in metro Atlanta, where they will soon begin construction on a 2.3 million-square-foot Class A logistics center.
Known as the Jackson 85 North Business Park, the development is in the northeast Atlanta submarket along I-85 in Jackson County, about 60 miles from Atlanta.
It will be developed in two phases, with construction on the first phase expected to start in December and completion scheduled for the second half of 2022. Phase one will comprise two cross-dock facilities, one of 538,450 square feet and the other of approximately 1 million square feet.
Phase two will consist of a single 713,050-square-foot cross-dock facility. A Trammell Crow spokesperson told Commercial Property Executive that there’s currently no set timeline for phase two.
All three buildings will feature 185- to 190-foot-deep concrete exterior truck courts, 40-foot clear heights, ESFR fire sprinklers and R-19 insulation.
Leasing for the project will be handled by Wilson Hull & Neal Real Estate.
Demand for high-end logistics space continues to grow in the Atlanta suburbs, especially in the dynamic northeast submarket where Jackson 85 will be located, according to a prepared statement by Mark Dishaw, managing director of Trammell Crow’s Atlanta office.
He noted that Trammell Crow has already been capitalizing on this demand with nearby developments such as Jefferson Mill Business Park and Innovation Business Center.
The first building at Jefferson Mill, in Jefferson, Ga., was completed in 2018, and the latest building, of 1.1 million square feet, is currently under construction as a build-to-suit for Ace Hardware, the Trammell Crow spokesperson told Commercial Property Executive.
Last summer, Trammell Crow and joint venture partner Diamond Realty Investments sold the two-building, 403,600-square-foot Innovation Business Center, in Newnan, Ga., substantially completed last December, to Bixby Land Co.
The metro Atlanta industrial real estate market had a record first half, with 18.6 million square feet of absorption, which is only 4 million shy of 2020’s total absorption, according to a second-quarter report from JLL. Further, overall vacancy is 5.0 percent and spec developments are leasing an average of just five months after delivery.
Warehouse and distribution space in the Northeast submarket has a total vacancy of 5.8 percent and a total availability of 9.7 percent, on an inventory of 155.8 million square feet, while the average asking rent is $4.45, again according to JLL.