Category: Real Estate Investment

Aug30
2021
Posted by
Marketing Staff

Braselton Crossroads industrial park provides direct access to I-85, a corridor connecting Atlanta submarkets & Southeast economic hubs.

Some of the highest performing industrial submarkets in metro Atlanta straddle Interstate 85, one of the busiest transportation corridors in the U.S. The ability to conveniently access fast-growing consumer markets in Atlanta and beyond has made the I-85 corridor an increasingly important location for distribution and logistics.

Ackerman & Co. has long recognized the strategic advantages of this corridor and has extensive experience developing and acquiring distribution centers along I-85 in Northeast Atlanta. The company constructed a 1 MSF speculative distribution center leased to and later purchased by Uline Inc., one of the country’s top business supply companies. Located in Braselton, Ga., the facility has become the consolidated hub for the company’s Southeast distribution operations and benefits from convenient access to two nearby I-85 interchanges.

As Ackerman & Co. strives to meet the growing demand for industrial space along the corridor, the company continues to pursue development of new Class A facilities.

Ackerman & Co.’s latest project in this area is Braselton Crossroads, positioned on a 65-acre site providing direct access to I-85. Ackerman plans to begin construction later this year on three facilities totaling nearly 500,000 SF: 161,000-SF Building 200, 150,000 SF Building 300 and 150,000-SF Building 400.

The Class A facilities will feature clear heights up to 32 feet, six-inch ProSlab concrete floors, white TPO roofing, abundant auto parking and truck loading bays.

“The I-85 corridor is a much sought-after location for retailers, distributors and manufacturers thanks to its strong population and economic growth,” said Brett Buckner, Senior Vice President in Ackerman & Co.’s Industrial Services Group. He’s teaming with VP Chris Miller to lease the space. “Braselton Crossroads provides a strategic location and will offer the most modern design features for today’s high-efficiency distribution operations.”

The neighboring Duluth/Suwanee/Buford industrial submarket has a lengthy stretch of I-85 access. Ackerman’s new project is located in the far northwest corner of the South Bartow submarket in the only section offering direct I-85 access, making it a highly desirable distribution location.

Demand for industrial space along I-85 in metro Atlanta is only expected to rise in the future. In fact, the portion of the I-85 corridor stretching from Atlanta to the North Carolina-Virginia border is increasingly recognized as an economic powerhouse.

“With strong demographic growth, locational and infrastructure advantages and pro-growth government entities, the corridor is primed to emerge as a ‘megaregion’ over the next several years,” according to a recent CoStar analysis. This stretch of I-85 already has a nickname – “Charlanta” for its two biggest cities, Atlanta and Charlotte. I-95.

Economic activity in Georgia, North Carolina and South Carolina is largely concentrated along I-85, with the 33 counties in this corridor accounting for $543.5 billion in gross regional product (GRP), or 43% of the GRP in the three states, according to CoStar.

Along I-85 and across metro Atlanta, demand is booming for well-located distribution, e-commerce and manufacturing space. The 29.1 million square feet of space absorbed in the past year in Atlanta is second- highest in the nation, behind only Dallas-Fort Worth.

The Class A facilities at Braselton Crossroads are expected to be completed by the end of 2022. In addition to leasing space at Braselton Crossroads, Brett Buckner and Chris Miller are also leading leasing efforts at two sites Ackerman & Co. has retained at the Class A Rockdale Technology Center in the I-20 East industrial submarket. Build-to-suit and pre-lease opportunities are now available.

Seeking industrial space? Contact Brett at bbuckner@ackermanco.net or Chris at cmiller@ackermanco.net

CRE Experts Agree Enhanced Amenities Will Be Crucial for Attracting Office Tenants In Post-Covid Landscape

Jul2
2021
Posted by
Marketing Staff

 

Atlanta’s appeal as a destination for corporate relocations is helping to boost its economy and fill office space in locations ranging from Midtown Atlanta to the suburbs. Despite these large corporate move-ins, the office market in metro Atlanta has been showing signs of demand softening – with vacancies up by 2.7% over the past 12 months – as the market continues to grapple with the lingering impacts of the COVID-19 pandemic.

What will it take to keep and attract new tenants in today’s evolving office market?

This challenge was a big topic of discussion at Atlanta Bisnow’s “What’s Driving Atlanta CRE?” event held at the new 712 West Peachtree tower in Midtown Atlanta. Representatives from four Atlanta commercial real estate firms offered their perspectives on the latest CRE trends, with an in-depth discussion on the office sector.

Taylor Smith, Southeast Regional Director for Rubenstein Partners, said COVID-19 impacts have accentuated trends that were already taking shape.

“You can look at COVID as an accelerant,” he said. At a time when more space users are experimenting with hybrid in-office and remote working options for their employees, his team has arrived at a clear conclusion.

“I think the one thing that will stick is a concentration on amenities,” he said.

Cousins Properties EVP Kennedy Hicks agreed. “I’m not convinced that the new normal looks much different than where we were heading pre-Covid. This has given everybody time to reflect on the office space needs for their company.”

She added: “You’ve got to make the environment something where people want to come to work. Companies will continue to focus on using their office space to provide the amenities, the lifestyle and the conveniences employees want.”

These conveniences and amenities can increasingly be found at mixed-use developments offering a variety of both indoor and outdoor amenities.

Ackerman & Co. SVP Steve Langford told the audience about two Atlanta projects that are representative of this trend.

Lee + White, a 433,000-square-foot adaptive re-use development in the West End of Atlanta co-owned by Ackerman and MDH Partners, is home to popular breweries, distilleries, food manufacturers and retailers. In the next phase of the redevelopment now underway, the investment partners are adding 150,000 square feet of creative loft office space that has already attracted a new HQ location for an innovative nanotechnology company.

A major draw for office tenants is the project’s diverse mix amenities, including ½ mile of direct Atlanta BeltLine access and an abundance of outdoor patio and green spaces. The current phase of the development will add more amenities, including a food hall and a great lawn for events and community gatherings.

There is also Six West, a planned $1-billion mixed-use project in the shadow of Hartsfield-Jackson Atlanta International Airport. Steve Langford is the exclusive land broker for the project, designed to be a 24/7 work-live-play destination incorporating Class A office, stores and boutiques, hotels, restaurants, and single-family and multifamily residential.

Langford said the project’s location at the doorstep of the world’s busiest airport combined with the varied amenities – which also include the nearby College Park MARTA rail station and a recreational trail circling the project – should help Six West stand out in its efforts to attract national and international HQ operations.

Taylor Smith pointed to Alpharetta’s Sanctuary Park office complex as another development that has added an array of amenities. A multimillion-dollar capital improvement initiative went into opening the Clubhouse, which offers tenants a food hall, athletic club and training facility. A newly added perk is a micro-mobility program offering tenants e-scooters, e-bikes and traditional bikes to navigate throughout the campus. The property also offers two miles of walking and jogging trails.

‘Firing On All Cylinders’
Since the ‘What’s Driving CRE?” event was held in Midtown in the fast-growing Tech Square corridor, it was only natural that the panelists discussed the emergence of Midtown Atlanta as an increasingly important tech hub benefitting from the resources and talent of Georgia Tech.

High-profile space commitments in Midtown include Google leasing 500,000 square feet at 1105 West Peachtree Street and Microsoft occupying 523,000 square feet at Atlantic Yards, with future plans also calling for the software and technology giant to establish an East Coast headquarters campus at Quarry Yards on the West Side.

While these and other relocations to Midtown including MailChimp’s 300,000 square foot expanded headquarters in the nearby Old Fourth Ward neighborhood are impressive, the Atlanta metro area as a whole is benefitting from high-profile corporate relocations.

“Atlanta is firing on all cylinders,” said Kennedy Hicks. “It’s not just Midtown. Companies will gravitate toward amenities and mixed-use development, and you can find those in Alpharetta at Avalon, in Buckhead [among other submarkets].”

Steve Langford said the influx of corporate relocations is influenced in part by the COVID-19 crisis, which spurred organizations to investigate lower-cost locations for their business operations. “When Covid hit, a number of businesses, particularly in the Northeast, started looking at the Sunbelt markets, especially Atlanta,” Langford said.

He added: “Atlanta really stood out. We’re fortunate that Atlanta has an increasingly diversified economy. This will really bode well for Atlanta going forward.”

While Atlanta’s CRE sector faces similar challenges to other markets across the country, the panel agreed that the metro area’s advantages, including its lower business costs compared to gateway markets, place it in a healthy position to continue thriving.

Ackerman Retail’s Dynamic Investment Sales Duo

May25
2021
Posted by
Marketing Staff

Investment Sales Experts Sean Patrick and KB Yabuku Produce Impressive Results for Clients  

As high-producing brokers for Ackerman Retail who team up to develop prospects and complete investment sales transactions, Sean Patrick and KB Yabuku share quite a bit in common.

They both have extensive commercial real estate expertise ranging from net-lease sales, project development and asset management to site selection and property leasing.

Traveling is a hobby both enjoy – recent visits for Sean include Athens and Santorini in Greece, while one of KB’s favorite trips was to Barcelona and Ibiza, Spain.

They also both have similar approaches to their work. When KB lists some of the traits that he considers crucial for success as broker – “tenacious, analytical, sociable, driven” – Sean agrees with him.

Oh, and then there’s the way they describe themselves.

“Two of the best bald brokers in the business,” says KB.

“Two of the best AND good-looking bald brokers, I might add,” says Sean, laughing.

So, with these similarities, it’s not surprising that they make an effective Investment Sales team for Ackerman Retail. Sean and KB advise investors on dispositions and acquisitions, with both single-tenant and multi-tenant retail properties and portfolios representing key areas of focus.

Roots in ATL
KB and Sean share another thing in common – Atlanta roots. Sean is an Atlanta native born at Piedmont Hospital, and KB grew up in College Park after his family moved to metro Atlanta when he was three years old.

When he was an undergraduate student at Georgia State University, KB said professor David Haddow was a big reason he became interested in real estate.

“I took David’s Real Estate Market Analysis course as an elective and I was hooked. That semester, I switched my major from marketing to real estate, picked up an internship with Cushman and Wakefield and never looked back,” says KB. He credits Haddow and Ron Whitley (former Chief Diversity Officer at Cushman & Wakefield) for setting him on the path of a successful career in commercial real estate.

Sean, who received a Civil Engineering degree from Auburn University, started his real estate career working in the development side of the business, first at the civil engineering firm Post Buckley Schuh & Jernigan in Florida and then as a project manager focusing on power center civil engineering design at Wolverton & Associates. Next, at Bullock Mannelly Partners, he established himself in development and brokerage, focusing on sales of residential, retail and multifamily land. He did so after meeting two successful brokers who would eventually move over to Ackerman & Co. with him – John Speros and Larry Wood.

“They were closing big deals and I thought, ‘I want to do what they do,’” Sean said. Around the Great Recession of 2008, Sean completed his CCIM certification and now focuses on private client retail investment sales with KB.

KB brings an equally wide range of experience. He received a Bachelor’s degree in Real Estate from Georgia State University’s J. Mack Robinson College of Business and an MBA in Finance from the University of Georgia’s Terry College of Business.

KB gained experience in office leasing as a tenant rep at the Staubach Company and Jones Lang LaSalle. He then became a commercial real estate underwriter at BB&T and later focused on investment sales with a specialty in net-lease retail and industrial properties at the Stan Johnson Company. He also spent two years in commercial real estate development, managing retail and industrial build-to-suit and redevelopment projects at Hart Lyman Companies.

“KB and I are able to combine our strategies and experience to gain new clients. Our experiences and backgrounds complement each other’s,” said Sean.

Between the two of them, Sean and KB have over 42 years of experience.

Thinking Outside The Box

Sean and KB are committed to providing solutions that help buyers and sellers maximize the value of their investments. While they’re proud of their deal-making track records, they view themselves as much more than transaction brokers. With their wide-ranging commercial real estate expertise, they’re able to provide additional services to help clients achieve their long-term business goals.

“We’re not just like every other broker. Our approach is all about thinking outside the box and adding real value for our clients,” said KB.

Added Sean, “Our approach to serving our clients is tied to the Ackerman approach to commercial real estate. A lot of us are investors and own real estate, so we understand what it’s like to be in the client’s shoes and how to bring extra expertise and services to the table to meet their needs.”

Customizing services to match the objectives of their clients is a big part of what they do.

“We try to serve as the back office for our clients. For instance, if our clients need help raising capital or with site selection or other assistance, we can do that ourselves or utilize Ackerman’s full-services platform and the expertise of our Ackerman Retail colleagues,” said KB.

One of their recent deals is representative of the value they bring to their clients.

In marketing and selling the Childtime Learning Center of Kennesaw on behalf of the owner, they attracted six offers and succeeded in selling the property at 100 percent of the listing price at a cap rate of 8.75 percent. This was definitely a great result for a value-add property with a short-term lease.

Sean and KB are also currently in the process of creating strategic business plans for several clients interested in selling portfolio assets across the Southeast.

“We’ve been successful completing deals despite the challenging environment during the pandemic and we expect transactions to pick up steam now that the retail sector is slowly improving,” Sean said. “The Southeast has diversified its economy. This is a great place to do what we do and add value.”

Are you a buyer or seller seeking expertise to maximize your investments? Contact Sean at spatrick@ackermanco.net or KB at kyabuku@ackermanco.net

Six West Developers Gear Up for Summer 2021 Construction Start

Mar12
2021
Posted by
Marketing Staff

The project’s development team gives Atlanta’s CRE community an update on the exciting mixed-use project.

For many of the Atlanta commercial real estate professionals who attended the sold out Construction Coffee Club breakfast at the Buckhead Club on Thursday, it was their first large in-person event since virtual Zoom meetings became the norm during the pandemic.

The event provided an opportunity for the Six West development team to update the CRE community on the $1.5-billion mixed-use development in College Park, which will offer a dynamic mix of offices, restaurants, shopping, entertainment venues, hotels and single-family and multifamily residential.

On a beautiful spring-like day coinciding with a sense of optimism that the country just might be turning the corner on the COVID-19 pandemic, it’s fitting that the mood was upbeat about the project.

“Things are moving fast. There are a lot of development sites that are already closed, so we need to get going,” said Jesse Frasier, Partner at BDR Partners, serving as project manager for Six West. “We’re starting construction in 2021.”

College Park held a ceremonial groundbreaking for the 320-acre project last October. Like many other real estate developments, Six West has experienced some delays due to the COVID-19 pandemic’s impacts on the economy.

“The good news is that during this time we still had activity and we still had interest from developers,” said Ackerman & Co. Senior Vice President Steve Langford, the exclusive broker for the project.

Langford noted that construction will begin as early as this summer on several components of the multiphase project, including residential, office and hotel developments. He said he expects there to be announcements soon on development commitments for specific parcels.

About 87 acres has been spoken for, roughly 27% of the 320-acre site.

“Let me put that into perspective for you. The first phase of Avalon encompassed 80 acres. So right now with what we have under contract and are currently in discussions with, we’re pretty much at the size of phase 1 of the Avalon development,” said Langford, referring to the hugely successful mixed-use development in Alpharetta.

The Six West Difference

Six West is designed to be a 24/7 work-live-play destination. The development team discussed key features that will set Six West apart from existing and planned mixed-use projects in metro Atlanta.

“The Six West development has a lot of really nice infrastructure all around it,” said Artie Jones, Director of Economic Development for College Park.

Of course, its strategic location next to Hartsfield-Jackson Atlanta International Airport is a huge benefit. In addition to creating a built-in customer base for the project’s many attractions, developers also hope the airport will be a draw for national and international HQ operations.

Six West is also walkable from the College Park MARTA rail station and conveniently accessible via I-75, I-85 and I-285.

“The most important things about Six West are affordability, connectivity and accessibility,” said Steve Langford.

The construction of a pedestrian bridge connecting the Georgia International Convention Center and the Gateway Center Arena to Six West will boost accessibility. The pedestrian experience within the development will be enhanced by the walkable streetscape extending from downtown College Park’s street grid, and a pedestrian trail will circle the development.

Investors will be able to purchase and develop sites at a lower cost than in Midtown, Buckhead and many other prominent Atlanta districts.

“Relative to other major projects around the city, this project is hands down more affordable for a business to relocate to,” Langford said.

The project’s Incremental District near the entrance will feature smaller-scale developments designed to attract local businesses.

“This [College Park] is a big area where people were moved out of,” said Bill de St. Aubin, CEO of the Sizemore Group, referring to the residential properties vacated as part of the FAA’s noise abatement program beginning in the 1980s. The Incremental District provides an opportunity for local residents to participate in the project.

The Incremental District is designed to bring the ambiance of downtown College Park into Six West. The district’s walkable streets and alleys will be lined with restaurants, shops and offices. Strategies will be implemented to support local business owners and help them purchase parcels and implement their visions.

“How can local residents benefit? One of the ways they can benefit is by becoming small developers, by owning a piece of it,” said de St. Aubin, whose company created the Six West masterplan with community input. “This district is for small, local owners.”

About the Construction Coffee Club
The Construction Coffee Club, created by Chris Maier of Cooper & Company General Contractors, schedules breakfast meetings and other events for Atlanta’s construction and real estate community.

Sep14
2020
Posted by
Marketing Staff

With a history of more than 50 years as one of Atlanta’s leading commercial real estate firms, Ackerman & Co. has built its success on the strength of its full-services platform.

Expanding its staff with experienced brokers who have deep and specialized commercial real estate expertise has been crucial to the firm’s growth over the years. Ackerman & Co. continues to make strategic additions to its staff even during the unprecedented impacts of the COVID-19 pandemic.

The firm has bolstered its Investment Sales services with the recent addition of three experienced brokers – KB Yabuku, Daniel Yi and Jude Sullivan (left to right below). They’ll help strengthen the firm’s services to buyers and sellers of commercial real estate properties, particularly investors in retail and office assets.

“We’re always looking for opportunities to strengthen our Brokerage group,” said F. Keene Miller, President of Brokerage for Ackerman & Co. “Today’s economic environment presents unique challenges and opportunities. These new additions to our Brokerage group will expand our relationships in the investment community. They’ll also provide crucial market and transaction expertise to help our clients make the best investments to achieve their long-term business goals.”

KB Yabuku is a proven high-producing Investment Sales broker who has experience working with programmatic developers, institutional owners and high-net-worth investors. He comes to Ackerman from Hart Lyman Companies, where he was Southeast managing Director with a focus on retail development and site selection for Fortune 500 companies nationwide.

Daniel Yi provides more than 12 years of commercial real estate expertise and deep relationships with a wide range of investors, including international clients. Most recently, Daniel was a Director at Newmark Knight Frank.

“The combination of skills and experience that KB and Daniel provide will be a great asset to our Investment Sales services and the entire Ackerman Retail platform,” said Leo Wiener, President of Ackerman Retail.

Jude Sullivan brings specialized expertise in the office sector and has represented a wide range of investors in the sale and purchase of single and multi-tenant properties. During his time at Bull Realty, Jude was recognized as a Top 10 Broker for annual production.

“Jude brings us outstanding market knowledge and a dedication to helping buyers and sellers implement strategic investments,” said F. Keene Miller. “We’re excited to strengthen our Investment Sales services with these key additions to our Brokerage group.”

 

With Parcel Sale Complete, Leasing Efforts for Porter on Peachtree Pick Up Steam

Jun16
2020
Posted by
Marketing Staff

When Ackerman & Co.’s John Speros brokered the third-party sale of a prime 4.6-acre parcel on Peachtree Road in the city of Brookhaven, it didn’t mark the end of Ackerman’s involvement in the property.

Ackerman Retail Senior Vice President Kelly Wilson has been selected to lease up the retail portion of the mixed-use Porter on Peachtree project now taking shape on the site. Located at 920 Peachtree Road just north of Buckhead, the city of Atlanta’s premier shopping district, the project will feature approximately 291 apartments and approximately 17,600 square feet of ground-level retail.

Kelly is leasing the space on behalf of the parcel’s former owner, SDS Real Property Holdings. As part of the original sale, SDS will buy the retail portion of the project from new owner Wood Partners upon completion of construction.

Kelly said there is a great deal of interest among a variety of retailers for the space.

What makes Porter on Peachtree such a desirable retail location?

“This area has great demographics, is a highly sought-after retail node and has very little vacancy,” said Kelly. “It’s very difficult to find retail space with frontage along Peachtree anywhere from North Buckhead, through Brookhaven and heading into Chamblee.”

The tenant lineup at Porter on Peachtree will include up to two restaurants, with a retail mix likely to feature service-oriented retailers, boutiques and possibly a coffee shop, Kelly said.

Porter on Peachtree is in the Buckhead/Lenox submarket of Atlanta, which commands the highest rental rates in the metro area. The submarket has a total inventory of 12.5 million square feet and boasts Atlanta’s most prestigious shopping destinations, including Lenox Square, Phipps Plaza and the The Shops Buckhead Atlanta.

The impressive demographics of the project’s Brookhaven address include an average household income of more than $130,000 and a population within three miles of more than 133,000. The Capital City Country Club is located behind the property, and the Brookhaven MARTA station is only 1,000 feet away.

John Speros along with David Branch of SSG Realty Partners brokered the sale of the parcel for $15.8 million. “Because the seller is purchasing the retail portion of the development at completion, this was a very complex transaction that was years in the making,” John noted at the time of the sale.

Construction is under way and completion is targeted for late 2021.

New Renderings Showcase the Next Phase of Development at Lee + White

May22
2020
Posted by
Marketing Staff

The transformation of Lee + White is entering an exciting new phase.

Renderings have just been unveiled showing what’s next for the adaptive reuse development just southwest of downtown Atlanta in the West End neighborhood. The next phase of development will add striking design features to existing buildings and produce a new two-story glace-façade building that will become a new centerpiece for the West End.

The renderings are a vivid representation of the diversification of the project Ackerman & Co. and MDH Partners envisioned when purchasing the popular entertainment and food & beverage destination last fall. The upcoming redevelopment will add creative loft offices, a food hall, public spaces, additional retail options and multifamily units, all featuring direct and enhanced Atlanta BeltLine access.

“This new phase of development will add a dynamic mix of uses that will heighten much needed daytime activity and strengthen the already popular night and weekend visits, while greatly improving the walkability and overall visitor experience through the 23-acre site,” said Leo Wiener, President of Ackerman Retail.

Amid the current coronavirus pandemic, businesses at Lee + White are re-opening with the health and safety of their customers and community in mind.

“We are in the unique position of being able to adapt the design of Lee + White’s further redevelopment to newly evolving social distancing and operational guidelines. We plan to take advantage of the existing warehouse volumes, high ceilings and wide-open floor spaces along with direct connectivity to many outdoor spaces, including patios, greenspaces and the Atlanta BeltLine,” said Jeff Small, CEO of MDH Partners.

Atlanta-based Smith Dalia Architects is the creator of the new master plans. Further capitalizing on the project’s half mile of frontage along the Westside BeltLine, the master plans propose new and enhanced access to the BeltLine, a variety of public spaces overlooking the trail and a path connecting the project’s numerous outdoor spaces.

Here’s what’s on tap for the next phase of development:

  • The new centerpiece of the development – Building 1015, a two-story glass-façade structure opening directly to the Atlanta BeltLine with terraces overlooking the busy pedestrian trail. The building will house a 17,000-square-foot food and retail collective on the first floor and 18,000 square feet of loft offices on the second floor. The second-story loft offices will be notable for the distinctive entry, marquis signage, 12-foot ceilings and floor-to-ceiling glass curtain wall.
  • Building 1050, an adaptive re-development of industrial warehouse space into 42,121 square feet of creative loft offices with 18-foot ceilings, abundant natural light and a large terrace overlooking the BeltLine.
  • Building 929, an adaptive re-development of industrial warehouse space into 85,000 square feet of creative loft offices offering frontage on Lee Street, dramatic entry features and common areas, and views overlooking the BeltLine along with new access to the trail. Unique design elements will include exposed-beam roofing, floor-to-ceiling windows and skylight-lit double-height interiors.
  • Approximately 30,000 square feet of ground-level retail space distributed throughout the property.
  • Up to 250 multifamily units with walk-out access to Lawton Street and the BeltLine.
  • A terraced outdoor multi-use area – similar to a mini-amphitheater – stepping down directly to the BeltLine.
  • A vertical Lee + White sign at the property’s front corner providing distinctive branding that honors the property’s history.

Construction is expected to begin in the third quarter of 2020, with delivery of the first phase of office space in mid-2021. The opening of the new ground-up food and retail collective building is targeted for late 2021.

Ackerman & Co. and MDH Partners acquired the 11-building, 433,204-square-foot Lee + White property in September 2019 from Stream Realty Partners. The initial phase of the redevelopment of the mid-20th century industrial buildings included the addition of tenants such as Monday Night Brewing, Wild Heaven Beer, Best End Brewing, ASW Distillery and Hop City Craft Beer & Wine, each of which has developed a unique following and enjoyed tremendous success.

Apr28
2020
Posted by
Marketing Staff

During Atlanta’s post-recession economic boom, its industrial market posted some of the strongest numbers in the nation, registering positive absorption for nearly nine years in a row.

Along with a thriving economy, Atlanta’s low business costs, extensive transportation infrastructure, and one-day access to the fast-growing Southeast ports seemed to have the industrial sector positioned to continue the positive momentum.

Of course, the ongoing coronavirus emergency has changed the landscape for the industrial sector, along with every other property type. But there are signs that the impact on the industrial real estate may be less severe.

A strong foundation
As one of the nation’s most important distribution hubs, Atlanta has continued to attract major e-commerce operations along with a full range of consumer goods companies and logistics providers.

The Atlanta market’s major lease deals in the past six months include Amazon’s 2.8 million-square-foot distribution center in Stone Mountain and its 1 million-square-foot lease in Newnan, Ga.

Other big deals and projects include Goodyear Tires’ 1.5-million-square-foot build-to-suit project in Newnan, Ga. Online personal styling service Stitch Fix leased 925,800 square feet in the I-20 West/Douglasville submarket, while XPO Logistics leased 673,818 square feet in the Airport/South Atlanta submarket and SBS Transportation leased 517,500 square feet in Palmetto, Ga.

The surging demand for industrial space in Atlanta led investors to ramp up new construction, which currently totals approximately 19 million square feet, according to CoStar. Vacancy levels as of mid-April remained low at 6.4% and the overall rental rate was $6.16, a 6.4% increase from the previous year.

What’s next?
Those numbers don’t yet reflect the changes taking place throughout the economy. The big question now is: How much will industrial demand be impacted by the COVID-19 crisis?

“You’ve got your recession-proof types of businesses – companies needing refrigeration for food products and manufacturers of essential goods. And, of course, there continues to be strong demand from e-commerce companies like Amazon,” said Chris Miller, Senior Vice President in Ackerman & Co.’s Industrial Services group.

In addition to Amazon, other e-commerce retailers are experiencing skyrocketing sales due to the millions of Americans who have turned to online shopping to purchase everything from health products and clothing to toilet paper and canned foods. There could also be a long-range movement toward the on-shoring of manufacturing due to disruptions in the supply chain for products such as pharmaceuticals.

However, there are definitely issues of concern. Cargo volumes at the Port of Savannah, now the nation’s third-busiest container port, declined by nearly 20 percent in March following a lengthy period of record increases. In addition, the retail shutdown that has spurred widespread layoffs will also impact demand levels, although the extent is not yet known.

Even so, CoStar expects fundamentals to stay afloat. Based on Oxford Economics forecasts, CoStar currently anticipates that – even in a severe downside scenario – Atlanta industrial vacancies will likely remain below the market’s long-term historical average.

“Deal volume through the first quarter was roughly equal to the metro’s quarterly average. We expect deal volume to slow, but CoStar clients remain active in sourcing and performing due diligence on deals during the crisis,” said David Kahn, Managing Analyst at CoStar, in a recent video report. “If the situation improves in the coming months, it wouldn’t be surprising to see an uptick in transaction activity in the second half of 2020.”

Chris Miller echoed that cautiously optimistic outlook.

“The industrial sector is historically the last to see a downturn and the first to recover,” he said. “When we get the all-clear, there will be a lot of activity because people are buckled in and ready to see this situation improve so they can get deals done. I think there is optimism that we’ll come out of this strong.”

Mar20
2020
Posted by
Marketing Staff

As Ackerman & Co. steadily strengthens its services platform and adds talent to its brokerage group, the firm continues to solidify its position as a leading commercial real estate firm in the Southeast.

One way to measure a firm’s success is by the number of its brokers who are named to the Atlanta Commercial Board of Realtors (ACBR) Million Dollar Club. A total of 11 Ackerman brokers were named to the Million Dollar Club at the recent 2020 ACBR awards.

“This is the most brokers we’ve ever had named to the Million Dollar Club,” said Kris Miller. “Our brokerage team is producing great results for our clients and we’ll continue building our team and the quality of our services to keep those results coming.”

The Ackerman brokers added to the 2020 Million Dollar Club include Courtney Brumbelow, Brett Buckner, Bryan Davis, Brian Lefkoff, Chris Miller, Kris Redding, Sean Patrick, John Speros, Jimmy Stevens, Kelly Wilson and Larry Wood.

Three of Ackerman’s 2020 Million Dollar Club members took home Top 10 Broker honors – Brian Lefkoff (the No. 5 Retail Broker), Courtney Brumbelow (the No. 8 Retail Broker) and John Speros (the No. 5 Land Broker).

As leader of Ackerman Retail’s Tenant Representation Group, Brian’s major deals included a 30,000-square-foot lease on behalf of Painted Tree Marketplace in Buford, Ga., which marked the retailer’s first store in Georgia, while Courtney completed nearly 100 real estate transactions as the head of the Landlord Representation Group.

A long-time high producer for Ackerman as Senior Vice President of the Land Group, John’s biggest transaction was the $18 million, 65-acre land sale for the Exchange at Gwinnett mixed-use project, which he brokered with Senior Vice President Larry Wood. The project, also named one of the three finalists for ACBR’s 2020 Alvin B. Cates Award, will feature Top Golf, Andretti Indoor Karting & Games, Rooms To Go and more.

The Million Dollar Club recognizes brokers with production of $5 million or more in annual commercial transactions.

Jan2
2020
Posted by
Marketing Staff

Brokers are vital to the success of every full-service real estate company, and Ackerman & Co. is fortunate to have a talented, diverse team ranging from young associate brokers to veterans with 40-plus years of experience.

At the close of every year, Ackerman & Co. recognizes brokers on both ends of that spectrum with its Broker Awards.

We’re excited to announce that John Speros is the recipient of our Broker of the Year Award and Kris Redding is our Young Broker of the Year.

Another Stand-Out Year for Veteran Broker

One of Ackerman’s most experienced and high-producing brokers, John Speros has been with the firm since 2009. He has expertise in virtually every type of commercial real estate transaction, from the sale of land parcels for single-family, multifamily and mixed-use developments to the disposition of portfolios and the acquisition of sites for commercial and residential development. His current focus is the representation of owners in land sales as leader of the Ackerman/Pioneer Land Group with Kyle Gable.

This past year has been one of John’s most productive, which is saying a lot for someone who has received multiple high-profile Atlanta market awards throughout his career – including recognition as the second-highest producing commercial land broker in 2010 and receiving the Alvin B. Cates Award for the most significant commercial real estate transaction in 2003 and 2007.

In 2019, John completed land transactions totaling nearly $75 million. Some of his biggest transactions include the $7.3-million sale of 35 acres in Gwinnett County that will become the site of the 330-unit Alta Sugarloaf multifamily complex and the $8.9-million sale of 152 acres in New Smyrna Beach, Fla., that will be used to expand a public park.

“We’re very fortunate to have someone with John’s experience and ability. He has been a key member of our team for years, and it’s great to see him have another hugely successful year,” said Kris Miller.

What stands out most about John to Kyle Gable is his combination of commercial real estate expertise and his willingness to serve as a mentor to younger brokers.

“I think there are two main qualities that make John so good in the land business. The first is his overall knowledge of all the different types of land transactions – he brings an array of knowledge to the table that most brokers just don’t have,” Gable said. “Second is his ability to get a deal closed. John understands the complexity of real estate and how to get the deal across the goal line.”

Kyle himself has benefited from John’s generosity in sharing his expertise. “When I was a 26-year-old with limited land experience, John took me under his wing and showed me how to work on land transactions and ultimately get them closed. In working with him over the past 10 years, I have seen him spend time with many young brokers teaching them about real estate,” he said.

Young Broker Hitting His Stride

A former NFL and Canadian Football League player, Kris Redding began his real estate career during the 2015 off season and now represents clients in both lease and sales transactions. Since joining Ackerman in 2017, he has demonstrated an ability to grow client relationships and become a valued partner in helping them achieve their business goals.

“It’s an honor to receive this award.” said Redding. “Ackerman’s prestige, tenured relationships within the industry, prolific resources and internal support system have provided me with a platform that has galvanized my ability to be productive in our business.” This productivity earned him a place in the NAIOP Million Dollar Club for completing more than $4 million in office leases in 2018.

Kris’s major deals in 2019 include representing Academy Orthopedics in the $5.26 million sale of its North Atlanta medical office portfolio. He also completed three lease transactions concurrently at Phoenix Business Campus with Worker’s United Southern Region, Primerica and Good Ground Development Center in five-year leases totaling 18,314 square feet.

“Kris brings the same hard-working and tenacious work ethic to real estate brokerage as he did to football. We look forward to seeing him continue his growth in commercial real estate as an important part of our brokerage team,” said Miller.

Read more about our brokerage group here: https://www.ackermanco.com/real-estate-services/overview/