USAA Lands 1.2M-SF Build-to-Suit Industrial Property in Atlanta
- Mar 29, 2010
March 29, 2010
By Allison Landa, News Editor
The struggling Atlanta industrial market is about to get a big infusion of space, but fortunately, it will not spike the vacancy rate. USAA Real Estate Company and Industrial Developments International Inc. has been tapped by The Clorox Sales Company to erect a nearly 1.2 million-square-foot distribution warehouse in Atlanta. Clorox will occupy the build-to-suit property under a 10-year lease agreement with USAA affiliate US Industrial REIT III Distribution.
Proximity to various modes of transport options for products is one of the most significant features manufacturing companies require for their warehouse and distribution centers. Clorox’s new facility on approximately 72 acres within the Southcreek Industrial Park will provide the consumer products manufacturer with a locale sited directly on I-85, and just south of Hartsfield International Airport.
If Atlanta’s industrial market grows in size any further this year, it will likely be due to projects like the facility USAA Real Estate is developing. As noted in a fourth quarter report by real estate services firm Grubb & Ellis Co., “New construction will be limited to build-to-suit development until excess space is absorbed and credit restrictions ease.” The average vacancy rate in the Atlanta area is 14.3 percent, and positive absorption is not expected to occur until late 2010.
USAA Real Estate plans to wrap up construction of the Clorox center in February 2011.