Newmark Knight Frank Takes More Than 900 KSF of Atlanta Industrial Leasing
- Jan 18, 2012
January 18, 2012
By Nicholas Ziegler, News Editor
Newmark Knight Frank has been tapped to provide leasing services for a 900,000-square-foot industrial flex portfolio near Atlanta, Commercial Property Executive has learned. Irvine, Calif.-based SVN Equities, the properties’ owner, has signed an agreement with the services firm to market 14 locations in two Norcross, Ga. business parks.
The NKF team will be responsible for leasing 200,000 square feet of space in Gwinnett Park, located at 4405 International Blvd. and nearly 706,000 square feet of space in Oakbrook North Business Park, located at 5300 Oakbrook Parkway. Gwinnett currently sits at a 65 percent occupancy rate; Oakbrook is at 70 percent.
“The portfolio consists mostly of office and flex space,” Marty Pinover, a senior managing director with NKF, told CPE. “[Since] it is Class B space, ownership is going to spend considerable amount of money for upgrades to the portfolio. We will lease space for a minimum of three years, but recently the inquiries have focused on larger space for mostly longer-term leases.”
And long-term leases have been the trend, especially in the Atlanta area. According to a third-quarter 2011 report by services firm Cushman & Wakefield, the city’s industrial conditions continued to improve through the fall of last year. “Despite ongoing cautiousness in the business sector,” the report noted, “Atlanta’s industrial real estate fundamentals improved, driven primarily by an ongoing expansion in manufacturing activity and improvement in consumer consumption in the first and second quarters, which has had positive ripple effects on the region’s warehouse/distribution product that accounts for the lion’s share of its industrial inventory.”
NKF’s internal research found the same results. “Absorption of space in the Northeast Atlanta submarket has been positive, and the third quarter’s increase in occupancy was the strongest of the year so far,” Pinover said. “The submarket should finish 2011 with its first positive year-over-year performance since 2008.”
Within a few days of receiving the assignment, the NKF team already signed on its first new tenant for the portfolio with the signing of Steak Out, a restaurant franchise, for 3,663 square feet at Oakbrook.