Red Rock’s 3 MSF Atlanta-Area Industrial Project Underway
- Jun 15, 2018
Construction is in progress on Shugart Farms Phase II, the 3 million-square-foot second segment of Red Rock Developments’ 2,500-acre Shugart Farms Industrial Park in Palmetto, Ga. The first leg of Phase II will yield a 982,800-square-foot speculative industrial building in suburban Atlanta.
Phase II’s initial spec warehouse/distribution building will open its 182 dock doors at 8500 Tatum Road in Atlanta’s Interstate 85 submarket. Commercial real estate services firm JLL is spearheading leasing for Phase II, and the firm is sanguine about the project’s prospects. Phase II will also include two build-to-suit options, with one building offering approximately 1.5 million square feet and the other featuring 485,400 square feet. Construction of the spec facility is scheduled to reach completion in the fourth quarter of 2018.
“Atlanta’s I-85 submarket offers unmatched connectivity to major interstates, transportation hubs and the Atlanta airport. High-profile tenants continue to ink deals in the area, stimulating job growth and indicating the incredible strength of Atlanta’s industrial market,” Brad Pope, senior vice president with JLL, said in a prepared statement. “We’re confident that the facilities at Shugart Farms Phase II will attract a variety of industrial users.”
Despite the nearly 18.5 million square feet of new industrial product that came online in Atlanta in 2017, the vacancy rate in the first quarter of 2018 dropped to a more than 20-year low of 6.3 percent, according to a report by commercial real estate firm Transwestern. Approximately 5.6 million square feet came online in the first quarter, and there’s more to come.
Red Rock is just one of a bevy of developers with industrial projects currently under construction. Within the last few months, PNK Group broke ground on the first building at Southern Gateway at Lambert Farms, a 3 million-square-foot industrial park in McDonough. Ackerman & Co. kicked off development of the 470,000-square-foot, three-building Rockdale Technology Center in Conyers.
Transwestern reports that deliveries in 2018 could very well break 2016’s record, which marked the highest level of development in 10 years. However, overbuilding doesn’t appear to be a threat. “The growth of distribution networks to support e-commerce and last-mile delivery should sustain demand for several years to come,” per the Transwestern report.
Image courtesy of Red Rock Developments