• 1920 Monroe Drive NE Atlanta, GA 30324

Vaccine Expectations Create Cold Storage Boom

Source: Globe Street

Right now, there are nearly 400 vaccines for Covid-19 in development. When some of those are approved for widespread use, they’ll need to be stored and distributed from temperature-controlled spaces.

Companies are already lining up giant cold storage facilities, also known as freezer farms, to securely store millions of vials of a vaccine, according to a new report from JLL.

For instance in August, UPS announced it was building a freezer farm in Louisville, Ken., and another in the Netherlands to rapidly distribute the vaccine across the globe. 

But that is only the beginning. Peter Kroner, investor research, Industrial, JLL, expects to see an increase of hundreds of thousands of square feet of cold storage worldwide to meet demand. 

To store vaccines, the freezer farms would require “specific, ultra-low temperatures, and spaces large enough for hundreds of custom, wheeled freezer boxes capable of maintaining -180 degrees Fahrenheit,” according to JLL.

Since vials of COVID vaccines will initially be transported by air freight, cold-storage space will need to have proximity to airports, according to Kroner. While these facilities near airports are more expensive, he says the product’s high value will offset the higher cost.

To monitor and ensure constant temperatures in these cold-storage facilities, warehouse operators will rely on automation.

“Time is of the essence here, and the right automation equipment, in the right cold storage environment, can literally save lives,” said Mehtab Randhawa, director, Industrial Research, JLL Americas.

Read the full article

Read More

Core5 Breaks Ground on Spec Distribution Center in Buford, Georgia

Source: CoStar

Core5 Industrial Partners has broken ground on a speculative distribution center in Buford, Georgia, it said will be ideally positioned to serve the Atlanta area and greater Southeast region once it’s completed next year.

The Atlanta-based industrial owner and developer is now underway on the Buford Business Centre, a 273,190-square-foot project Core5 is developing on a 22-acre site less than two miles from Interstate 985 and less than five miles from Interstate 85 at 4375 S. Lee St. It is being developed on a speculative basis with all rentable space available for lease, and is being marketed without an asking rental rate.

Adam Richards, Alex McArthur and Tyler Fann of Reliant Real Estate Partners’ Atlanta office are handling the leasing assignment.

Core5, which is also set to soon break ground on a 772,000-square-foot logistics complex outside Cincinnati, expects to complete the Buford Business Centre in mid-2021. Building plans for the rear-load complex include build-to-suit office space, an ESFR sprinkler system, 54 by 52-foot column spacing, 54 loading docks and two drive-ins.

Read the article

Read More

Atlanta-based cold-storage giant Americold announces $1.7B acquisition

Source: Atlanta Business Chronicle

Atlanta-based cold storage giant Americold Realty Trust said Tuesday it will buy privately held Agro Merchants Group, the fourth largest temperature-controlled warehouse company globally, for $1.74 billion.

Americold (NYSE: COLD) is the world’s largest publicly traded real estate investment trust focused on the ownership, operation, acquisition and development of temperature-controlled warehouses.

Agro is the third largest in Europe, and the fourth largest in the United States, and serves over 2,900 customers across a diverse spectrum of commodities. Agro’s portfolio consists of 46 facilities, totaling 236 million refrigerated cubic feet, located in 10 countries and will be a strong complement to Americold’s existing global network, Americold said.

Upon closing, Americold’s portfolio, including owned and managed sites, will consist of 229 facilities totaling approximately 1.35 billion refrigerated cubic feet, with a global network spanning four continents.

Agro is now owned by an investor group led by funds managed by Oaktree Capital Management L.P.

The deal is part of a wave of acquisitions in the consolidating cold-storage industry as the largest cold warehouse giants gobble up other companies in a bid to build end-to-end logistics networks that reach globally.

Read the full article

Read More

Amazon opens its first Georgia ‘robotics fulfillment center’ and two other facilities

Source: Atlanta Business Journal

Amazon has taken the next step of its Peach State expansion, opening three new facilities across Georgia, including its first robotics fulfillment center in the state.

Amazon said operations have begun at a new 640,000-square-foot robotics fulfillment center in Gwinnett County, as well as a 1 million-square-foot Coweta County facility that will process apparel and accessories, and a 600,000-square-foot last-mile delivery station in Fairburn. The three operations will create more than 1,700 new jobs, according to Amazon.

The Gwinnett County facility, first reported by Atlanta Business Chronicle in May 2018, will employ more than 1,000 and over 500 will work in Coweta County, according to the Seattle-based e-commerce giant. More than 130 people work at the Fairburn location that serves South Fulton County, and Amazon said an additional 100 full-time associates will be added this month.

Amazon offers $15 minimum wage and full benefits, as well as a 401K with a 50% company match.

“The Amazon robotics fulfillment center is the first of its kind in Georgia, and we are excited to see them open and ship their first packages,” said Gwinnett County Commission Chair Charlotte Nash in a news release. “This project has created a number of jobs, and will continue to be a catalyst for future development in this region.”

Read the full article

Read More

Warehouse employment is at an all-time high

Source: Supply Chain Dive

Warehouse employment has surpassed its pre-pandemic level to reach the highest level ever recorded with 1.25 million workers in the warehouse and storage sector in September, according to preliminary numbers from the Bureau of Labor Statistics.

This bounce-back comes as employment remains below what it was in early Q1 of this year. Overall unemployment dropped to 7.9% in September, which is much lower than the 14.7% seen in April but higher than the 3.5% seen in February.

Warehouse employment has reached a new peak as e-commerce sales are higher than any previous point in time, according to the latest Census data. E-commerce sales jumped almost 32% from Q1 to Q2 to reach nearly $212 billion.

In this sense, the pandemic has simply sped up trends surrounding e-commerce that were already taking place, according to Zachary Rogers, an assistant professor of supply chain management at Colorado State University. Companies that were struggling continued to struggle, while businesses that were improving have gotten better more quickly. E-commerce is the epitome of this trend, Rogers said.

Read the full article

Read More

E-Commerce Tenants Continue to Lease Industrial Space as the Holiday Season Approaches

Source: National Real Estate Investor

Anticipating a surge in online shopping during the holidays, e-commerce tenants are already prepared to handle the swell in orders, having locked in additional industrial space during the second and third quarters, according to Steve Schnur, executive vice president/COO at Indiana-based industrial REIT Duke Realty.

Online retail sales increased a whopping 30.1 percent during the first six months of the year, compared to the same period in 2019, from $266.84 billion to $347.84 billion, according to Digital Commerce 360 analysis by the U.S. Department of Commerce data.

Online shopping is expected to jump even more during the holidays, with software company Salesforce predicting that as much as 30 percent of all global retail sales will conducted online during the 2020 holiday season. A Statista survey found that nearly half of U.S. consumers plan to shop online during the period, reports Finch. What happens in the November election and whether there will be a new government stimulus package before the end of the year will also have an impact on online holiday sales, according to Pete Quinn, national director for industrial with real estate services firm Colliers International.

Read the full article

Read More

Industrial Net Absorption Has Risen 51% So Far This Year

Source: Globe Street

While the US economy has dangerously slumped for much of the year, demand for industrial space has only continued to increase.

Net absorption for bulk industrial space was up 51% to 79.8 million square feet in the first half of the year, according to Colliers. At mid-year 2019, 52.8 million square feet had transacted.

The pandemic drove these gains as e-commerce surged in the first half of the year. E-commerce accounted for 16.1% of retail sales in Q2 2020, which was an increase over the 11.8% in the previous quarter, according to the US Department of Commerce. That was a record for online shopping.

Overall, the industrial market posted 104.5 million square feet of occupancy gains at mid year 2020. The Big box segment claimed 79.8 million square feet, which was 76.3% of all net absorption in 2020.

As other commercial real sectors struggled in the first half of the year, vacancy, transaction volume and product under construction remained relatively flat across the country for bulk industrial space. According to Colliers, asking rents and net occupancy surged in the sector during the first half of 2020.

Cap rates were at a steady 5.6% midyear, while the industrial sector was the only CRE asset class to positive year-over-year growth at midyear, according to Real Capital Analytics. New development is also flourishing in the sector, with 170.7 million square feet under construction at the end of the second quarter of 2020.

Read the full article

Read More

Metro Atlanta Industrial Park Trades for $12M

Source: Connect Media

JLL has arranged the $11.6 million sale of Plaza 85 Business Park, a nine-building industrial, office and flex park totaling 191,526 square feet within a Qualified Opportunity Zone in the Metro Atlanta community of Norcross.

Located on nearly 14 acres at 5970-6040 Unity Drive in the Northeast Atlanta Industrial submarket, the industrial park is home to 31 tenants and features clear heights ranging from 12 to 18 feet, both dock-high and drive-in doors and a combination of rear- and front-loading configurations.

Dennis Mitchell, Matt Wirth, Britton Burdette and Crosby Taylor of JLL represented the seller, Sperry Equities, in the transaction. The buyer was Atlanta-based WePartner.

Read the article

Read More

Atlanta-area flex park sells for $11.65M to local buyer

JLL Capital Markets closed the sale of the 9-building office and industrial park in Norcross to WePartner 

Source: JLL

 JLL Capital Markets announced today that it has closed the $11.65 million sale of Plaza 85 Business Park, a nine-building industrial, office and flex park totaling 191,526 square feet within a Qualified Opportunity Zone in the Atlanta-area community of Norcross, Georgia.

JLL worked on behalf of the seller, Sperry Equities. Atlanta-based WePartner purchased the asset.

Plaza 85 Business Park is home to 31 tenants and features clear heights ranging from 12 to 18 feet, both dock-high and drive-in doors and a combination of rear- and front-loading configurations. The park is situated on 13.8 acres at 5970-6040 Unity Drive in the Northeast Atlanta Industrial submarket, Atlanta’s most infill industrial submarket. Additionally, the park is directly on and has immediate access to Interstate 85, the industrial backbone of the Southeast. This last-mile location allows tenants to access more than 3.8 million people within a 30-minute drive.

The JLL Capital Markets team representing the seller was led by Dennis Mitchell, Matt Wirth, Britton Burdette and Crosby Taylor.

“As companies compete on the e-commerce battlefield, proximity to the customer base has become one of the most effective ways to cut down on shipping costs and delivery times,” Mitchell said. “The convergence of last-mile connectivity, highly affluent suburbs and interstate access makes this a highly desirable location.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

Read the full article

Read More