Augusta Market · electronics juggernaut, Samsung, taking 421,000 SF in Aiken County. The majority...

Augusta Market

PREPARED BY

Jonathan Aceves

Commercial Sales & Leasing Agent

Industrial Market Report

INDUSTRIAL MARKET REPORT

Market Key Statistics 2

Leasing 3

Rent 7

Construction 9

Under Construction Properties 11

Sales 12

Sales Past 12 Months 13

Economy 15

Market Submarkets 17

Supply & Demand Trends 19

Rent & Vacancy 21

Sale Trends 23

Augusta Industrial

9/20/2019Copyrighted report licensed to Presley Realty - 689613.

OverviewAugusta Industrial

51.9 K 380 K 7.4% 4.4%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

Demand for logistics space in Augusta has been positivefor most of the expansion, boosted in particular byBridgestone's massive 2.4 million–SF delivery in 2014.Strong absorption continues across the metro, includingelectronics juggernaut, Samsung, taking 421,000 SF in

Aiken County. The majority of new development hasbeen limited to purpose-built facilities, keeping supply-side pressure to a minimum. Investment volumes remainmuted, although cap rates continue to decline.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$3.918.7%21,135,046Logistics 10.7% 39,700 0 0

$3.876.3%23,494,430Specialized Industrial 5.4% 205,046 0 40,000

$8.117.2%3,696,652Flex 8.4% 98,268 0 11,210

$4.217.4%48,326,128Market 8.0% 343,014 0 51,210

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

8.5%12.8%-0.7%Vacancy Change (YOY) 19.6% 2009 Q4 6.1% 2015 Q4

(81,227)590,526380 KNet Absorption SF 5,093,805 2015 Q3 (1,371,889) 2009 Q1

66,398417,19351.9 KDeliveries SF 2,990,400 2015 Q1 0 2014 Q1

2.1%1.3%4.4%Rent Growth 6.4% 2019 Q1 -5.8% 2010 Q4

N/A$29.1 M$45.8 MSales Volume $73.2 M 2017 Q2 $2.0 M 2009 Q2


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LeasingAugusta Industrial

After news of the Solo Cup plant closure, the leasingenvironment has turned decidedly positive. Samsunggrabbed over 400,000 SF in 2018, while healthcaretechnology firm Onecare moved into nearly 245,000 SF.In 2019, Cummins nabbed 200,000 SF in Burke County.

The demand for logistics space in this metro is primarilydriven by local consumption requirements. And while thepopulation and number of households within Augustahave been growing slightly faster than the nationalaverage, they are still below the growth rates for manysurrounding southeastern metros. Growth couldaccelerate as the U.S. Army Cyber Command istransitioning to Fort Gordon. Not only will Fort Gordonraise the number of jobs by 250–375 annually for thenext 20 years, but it will generate thousands of jobs fromcorporate relocations and spin-off employment. This willundoubtedly increase overall consumption levels, therebydriving demand for distribution and warehouse space.

Prior to 2016, net absorption was generally positive sincevacancy peaked close to 30% in 2010. However, in 2016

fundamentals started loosening. After an UrbanOutfitters' subsidiary moved out of 421,000 SF,vacancies pushed upward. Although the same site hassince been leased to Samsung, which intends tocomplement its manufacturing facility nearby, vacancieshave jumped by nearly double over the past three years.On the bright side, Samsung's move here will createmore than 1,000 jobs by 2020, in addition to the 500 itemploys at the plant currently.

Located within 150 miles of two major ports (Savannahand Charleston), Augusta has a relatively small logisticsinventory that primarily serves the local market. Thisdisconnect partially derives from its location in theshadow of the Atlanta metro, and distance from theactual interstates that move freight from the ports inlandand up the coast. Augusta may gain more traction in thecoming years, thanks in part to a $1.3 billiontransportation spending allotment from the State ofGeorgia, to be spent over the next couple of decades toimprove and expand roadways.

NET ABSORPTION, NET DELIVERIES & VACANCY


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VACANCY RATE

AVAILABILITY RATE


Page 4


12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

Evans/Martinez 312,336 0 38,199 0 274,137 0 312,3364395 River Watch Pky

Burke County 199,817 0 199,817 0 0 0 199,817Cummins

- 198,000 0 0 198,000 0 0 198,0001022 McCormick Hwy

Outlying Columbia C… 652,000 440,910 0 0 209,090 0 160,421Evans Industrial Warehouse

McDuffie County 148,417 0 0 0 0 0 148,417690 Augusta Road

South Richmond Co… 277,500 0 0 0 0 0 123,749Rail-Served Distribution Center-…

South Richmond Co… 84,826 0 0 84,826 0 0 84,826Former Deerfield Tissue Plant

Outlying Aiken County 3,123,117 0 404,800 0 0 0 79,847Kimberly-Clark Plant

Outlying Aiken County 48,800 0 0 0 48,800 0 48,8001595 Columbia Hwy N (1)

South Richmond Co… 50,000 0 0 0 50,000 0 44,8471762 Lumpkin Rd

Outlying Aiken County 37,500 0 37,500 0 0 0 37,500575 Woodward Dr

Burke County 30,000 0 0 30,000 0 0 30,000230 W 13th St

Outlying Aiken County 30,000 0 0 30,000 0 0 30,0001595 Columbia Hwy N (2)

Burke County 243,240 0 0 0 0 0 26,4381 Evercare Way

Outlying Aiken County 26,900 0 0 0 0 0 25,7801531 Park Ave

Outlying Aiken County 26,000 0 0 25,500 0 0 25,500Heated & Cooled Warehouse in…

South Richmond Co… 47,500 0 20,000 0 0 0 20,0001811 Wilkinson Rd

5,535,953 440,910 700,316 368,326 582,027 0 1,596,278Subtotal Primary Competitors

42,790,175 3,159,235 (279,144) (599,618) (239,013) 0 (1,216,500)Remaining Augusta Market

48,326,128 3,600,145 421,172 (231,292) 343,014 0 379,778Total Augusta Market


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TOP INDUSTRIAL LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr

4301 Evans To Locks Rd Outlying Columbia County 409,090 - - Sherman & Hemstreet…Q3 19

1022 McCormick Hwy - 198,000 - - -Q1 19

2044 Forward Augusta Dr South Richmond County 75,000 Acoustic & Insulation Tec… - Sherman & Hemstreet…Q2 19

1595 Columbia Hwy N Outlying Aiken County 48,800 - - Willingham CommercialQ2 19

1811 Wilkinson Rd South Richmond County 20,000 - - Auto Investment GroupQ4 18

4304 Sudan Dr Evans/Martinez 18,200 CrossFit - Bankers Realty and Ins…Q4 18

4301 Evans To Locks Rd Outlying Columbia County 17,820 - - Sherman & Hemstreet…Q3 19

1886 Gordon Hwy South Richmond County 13,230 - - SVN/ KD Lanclos & As…Q2 19

3831 Wrightsboro Rd North Richmond County 12,000 - - Sherman & Hemstreet…Q2 19

815 E Pine Log Rd Outlying Aiken County 11,100 Ferguson - -Q1 19

3977 A Goshen Industrial Blvd South Richmond County 11,015 - - Sherman & Hemstreet…Q2 19

621 12th St Downtown Augusta 10,140 - - Burr & TemkinQ2 19

791 Industrial Park Dr Outlying Columbia County 9,600 - - D.C. Lawrence Comme…Q4 18

1010 Fenwick St Downtown Augusta 7,742 - - Moretz Production Svc…Q4 18

1939 University Pky Outlying Aiken County 6,500 OAK Services - ReMax Tattersall GroupQ1 19

4278 Belair Frontage Rd Outlying Columbia County 6,440 - - Sherman & Hemstreet…Q1 19

1441 Reynolds St Downtown Augusta 5,500 - - Sherman & Hemstreet…Q1 19

2917 Riverwest Dr North Richmond County 5,000 Leaf and Gutter - Augusta Industrial Serv…Q1 19

1812 Wilkinson Rd South Richmond County 5,000 Automotive Repair - Augusta Industrial Serv…Q1 19

3817 Martinez Blvd Evans/Martinez 4,524 - - Southeastern Real Est…Q1 19

1530 Crescent Dr South Richmond County 4,370 - - Sherman & Hemstreet…Q1 19

112 Commercial Blvd Evans/Martinez 4,200 - - Sherman & Hemstreet…Q4 18

2007 Tobacco Rd South Richmond County 3,600 - - ISCON ServicesQ2 19

1810 Wylds Rd South Richmond County 3,600 - - Nichols Land and Inves…Q2 19

1886 Gordon Hwy South Richmond County 3,522 - - SVN/ KD Lanclos & As…Q2 19

3105-C Spring Grove Dr South Richmond County 3,333 Avondale Paper Supply - Adams Property GroupQ1 19

428 Crawford Ave Downtown Augusta 3,300 - - Blanchard & Calhoun R…Q3 19

1732 Wylds Rd South Richmond County 3,200 - - Jordan Trotter CREQ1 19

791 Industrial Park Dr Outlying Columbia County 3,000 - - D.C. Lawrence Comme…Q4 18

472 Flowing Wells Rd Evans/Martinez 2,500 - - Blanchard & Calhoun R…Q1 19


4190 Wheeler Rd Evans/Martinez 2,500 - - Blanchard & Calhoun R…Q1 19


2917 Riverwest Dr North Richmond County 2,000 - - Augusta Industrial Serv…Q1 19

2917 Riverwest Dr North Richmond County 2,000 - - Augusta Industrial Serv…Q1 19

235 Camilla St Evans/Martinez 1,800 - - Sherman & Hemstreet…Q3 19

3105-F Spring Grove Dr South Richmond County 1,666 - - Adams Property GroupQ4 18

3105-F Spring Grove Dr South Richmond County 1,666 - - Adams Property GroupQ4 18

454 Columbia Industrial Blvd Outlying Columbia County 1,500 veterans heating and air - Sherman & Hemstreet…Q3 18

308 Main St N Outlying Aiken County 1,200 - - Tillman DoeQ4 18

*Renewal


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RentAugusta Industrial

Asking rents for industrial space in Augusta averaged$4.20/SF in early 2019. This is about 40% below theasking rents in Savannah and Atlanta, which is to beexpected given the metro's smaller size. However, rentgrowth has been strong in Augusta since 2013, andannual growth is still significantly above the historicalaverage. Logistics rent growth has been impressive inthe metro, rising from negative territory to about a 4-5%annual rate, which it has maintained since 2014. In fact,

asking rents for logistics space in Augusta finallyrebounded to their prerecession peak in 2017.

Despite a significant manufacturing industry here, themetro has largely trailed national rent growth averagesthis cycle. However, specialized industrial has been abright point for Augusta lately and accounted for morethan half of total absorption in the metro in 2018.

MARKET RENT GROWTH (YOY)


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RentAugusta Industrial

MARKET RENT PER SQUARE FOOT


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ConstructionAugusta Industrial

While speculative construction has ebbed due to highvacancies, purpose-built structures continue to deliver.Solvay Advanced Polymers expanded their existingmanufacturing facility by 100,000 SF in South RichmondCounty in late 2018, making it the largest delivery sinceAutoneum's 315,000-SF facility which delivered in mid-2017.

New construction of any significant size is somewhatlimited here. Since 2010, only four logistics buildingslarger than 100,000 SF have been delivered within themetro and two of these were purpose built for BennettInternational (525,000 SF) and Hollander Sleep Products(210,000 SF). The only significant spec project to comeonline was built by the economic development agenciesof Aiken and Edgefield counties. The 105,000-SF

structure was delivered in 2015 and has been vacantsince, though it is listed for sale. Owens Corning alsotook 175,000 SF of space in a 2014 delivery in OutlyingAiken County.

The logistics inventory in Augusta is dominated by older,and relatively smaller warehouses than those seen inmajor metros. In fact, the median building is just 11,000SF and was built 35 years ago. Roughly two-thirds ofAugusta's existing stock is rated 3 Star and below.Nationally, modern tenants, dominated by e-commerceclients, have opted for 'Big Bomber' facilities that caneasily eclipse 1 million SF of space. For comparison, just20% of the logistics space in the Augusta metro fits intothat category.

DELIVERIES & DEMOLITIONS


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ConstructionAugusta Industrial

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 North Augusta 1 40 40,000100% 1 18,97640 1

2 North Richmond County 2 11 5,6050.1% 2 13,1320 2

3 Burke County 0 - -- - 108,008- -

4 Downtown Augusta 0 - -- - 16,536- -

5 Edgefield County 0 - -- - 82,260- -

6 Evans/Martinez 0 - -- - 11,373- -

7 McDuffie County 0 - -- - 57,284- -

8 Outlying Aiken County 0 - -- - 84,314- -

9 Outlying Columbia County 0 - -- - 38,980- -

10 South Richmond County 0 - -- - 37,846- -

Totals 3 51 17,07078.1% 39,14940


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Under Construction PropertiesAugusta Industrial

3 51,210 0.1% 78.1%Properties Square Feet Percent of Inventory Preleased

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Feb-20171024 Dittman Ct

AmbioPharm (Expansion)40,000 1 Dec-2019

-

AmbioPharm, Inc.1

Jul-20192913 Gun Club Rd

Unit 2038,000 1 Nov-2019

-

Matthew D Mills2

Jul-20192913 Gun Club Rd

Unit 1013,210 1 Nov-2019

-

Southeastern Real Estate Group3


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SalesAugusta Industrial

Typically, only a handful of transactions involving largebuildings occur in a given year within Augusta, and so farno major deals have closed in 2019.

Last year, NYC-based Zacharias Equities picked up thenewly built Owens Corning plant in a deal valued at$11.3 million. Los Angeles-based IRA Capital sold the175,000-SF building at a 6.15% cap rate in late 2018.Additionally, Atlanta-based Peachtree InvestmentSolutions picked up a pair of specialized industrialproperties for just $5.33/SF from an owner/user that isvacating. The $3.5 million dollar deal more likely reflectsthe 50 acres under the facilities. Another 19Q2 trade sawvacant warehouse buildings trade for just $2.29/SF inwhat may end up being an adaptive re-use pursuit.

Sales volume and turnover peaked in 2017 when more

than $55 million traded, involving 1.8 million SF ofproduct. Roughly 40% of this volume came from a singletrade, the 315,000-SF facility for Autoneum NorthAmerica, which sold in mid-2017 for almost $22 million.A build-to-suit by seller JDC Aiken LLC, this 2017-builtfacility sold for $70/SF, with a 15-year lease in place toNew Jersey-based Monmouth Real Estate InvestmentCorporation.

Another reference point for logistics sales in this metroinvolves a vacant distribution facility sold by theUniversity of Tennessee Foundation to FulcraEnterprises in early 2017. The 421,200-SF building at30 Industrial Park Blvd. was acquired by the buyer for$24/SF (total transaction price over $10 million), whowithin a year leased the facility to Samsung at $3.45/SF.

SALES VOLUME & MARKET SALE PRICE PER SF


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Sales Past 12 MonthsAugusta Industrial

64 8.9% $24 12.8%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $89,900 $1,237,893 $577,191 $11,350,000

Price Per SF $0.52 $24 $48 $438

Cap Rate 6.0% 8.9% 8.8% 12.0%

Time Since Sale in Months 1.1 7.3 7.8 11.8

Property Attributes Low Average Median High

Building SF 453 42,329 9,906 453,708

Ceiling Height 5'5" 19'4" 18'6" 36'

Docks 0 5 1 75

Vacancy Rate At Sale 0% 12.8% 0% 100%

Year Built 1800 1980 1983 2014

Star Rating 2.1


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Sales Past 12 MonthsAugusta Industrial

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 Owens Corning Aiken Pl…2014 175,000 0% $11,350,000 $65

2650 Wagener Rd10/29/2018 6.1%

-2 1550 Marvin Griffin Rd1965 453,708 0% $7,415,500 $167/28/2019 -

-3 Thomson Building2008 64,256 0% $3,000,000 $47

1741 I20 Industrial Park Dr5/14/2019 9.2%

-4 Cummins1997 199,817 100% $2,750,000 $14

770 Mills Rd12/28/2018 -

-5 1431 Marvin Griffin Rd. A…1967 75,200 0% $2,450,000 $33

1431 Marvin Griffin Rd6/27/2019 9.0%

-6 1802 Sand Bar Ferry Rd1980 4,000 0% $1,750,000 $4386/26/2019 -

-7 690 Augusta Road1983 148,417 0% $1,500,000 $10

690 Augusta Rd10/1/2018 -

-8 643 O'Neal St1980 124,000 0% $1,320,000 $111/18/2019 8.6%

-9 5,000 sq.ft. Heated & Co…1999 12,500 0% $1,075,000 $86

1035 Franke Industrial Dr1/8/2019 -

-10 3704 Benchmark Dr2004 11,000 0% $985,000 $904/18/2019 -

-11 575 Woodward Dr2010 37,500 0% $900,000 $24

575 Woodward Dr1/16/2019 -

-12 Verenes Industrial Park1976 74,351 100% $850,000 $11

10 Windham Blvd1/15/2019 -

-13 23,000 sq. ft. Office / War…1976 23,107 0% $715,000 $31

1710 N Leg Ct2/1/2019 -

-14 2529 Newsprint Rd- 10,000 0% $650,000 $651/24/2019 -

-15 Bowles Construction1996 9,812 0% $650,000 $66

1012 Tindon St12/6/2018 -

-16 545 Taylor St2000 12,000 0% $585,000 $493/6/2019 -

-17 Penske Truck Terminal1984 7,300 0% $580,000 $79

1806 Carmichael Ct10/5/2018 -

-18 4809 Jefferson Davis Hwy2011 5,072 0% $577,191 $1145/21/2019 -

-19 Building A1990 4,000 0% $575,000 $144

1726 Barton Chapel Rd9/27/2018 -

-20 1017 Franke Industrial Dr1998 7,500 100% $550,000 $7312/20/2018 -


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EconomyAugusta Industrial

Augusta has largely mirrored national trends in jobgrowth this cycle, and 2018 saw a significant ramp-up inhiring. Job and population growth have historically beensporadic, but a large base of government employmentserves as a stabilizing force. The top employers in thearea are the Savannah River Site nuclear reservationand Fort Gordon, with 13,200 and 11,400 employees,respectively. Job growth has slowed in early 2019,however it is projected to rise over the course of theyear.

The 2013 announcement to move U.S. Army CyberCommand to Fort Gordon was truly a game changer forthe metro. Overall growth is expected to raise thenumber of jobs by 250–375 annually at Fort Gordon forthe next 20 years. Not only will it directly add jobs fromthe military, but it has already influenced the relocationdecisions for defense contractors and governmentagencies. For instance, the Cyber Command facility,delivered in 18Q4, will be across the street from an NSAfacility that reportedly employs 4,000 people. Defensecontractors new to the area have established offices inAugusta, including Booz Allen Hamilton, Saber Systems,and MacAulay-Brown. These newcomers join long-timedefense contractors like the Unisys Corporation, which isslated to add 700 IT jobs to the metro by 2019. Thesecontractors will provide a variety of supportive positionsto the 4,700 employees that will be directly employed at

the new cyber division by 2020. The Fort recentlyannounced another $100 million in capital upgrades tocreate a new multi-lane gate, offloading congestion onGordon Hwy.

Outside of the military and cyber-defense industries,major job announcements have largely been positive.Green Energy Company announced that it would bring250 manufacturing jobs to the metro by the end of 2018.Along with this, the company is expected to invest nearly$70 million in its new international HQ in South Augusta,where it is planning to construct a facility in the AugustaCorporate Park. ADP is adding about 450 jobs to itsfacility off Flowing Wells Road, which is scheduled to beexpanded. Coffee titan Starbucks won $130 million inindustrial revenue bonds to double the company'sexisting 140,000-SF facility, adding 100 net new jobs.Although no new jobs were announced with it, theGraphic Packaging mill announced over $350 million inupgrades to the 60-year old facility it purchased fromInternational Paper in 2018.

Augusta could get a big boost soon as the new tax coderolls out initiatives to invest in Opportunity Zones, whichcan provide large, long-term capital-gains taxdeferment. The majority of Downtown Augusta lies in anOpportunity Zone, as well as portions of Aiken County,South Augusta, and Burke County.

AUGUSTA EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

-0.03%-0.10%1.00%0.86%1.21%1.28%1.122Manufacturing

0.44%0.25%1.23%1.60%0.94%1.77%0.941Trade, Transportation and Utilities

0.36%0.02%0.89%1.13%0.03%1.37%1.127 Retail Trade

0.33%0.51%1.06%-1.63%0.90%1.56%0.57Financial Activities

0.75%0.83%0.03%-0.02%0.47%1.19%1.347Government

0.18%-1.17%2.38%4.29%2.81%0.19%1.317Natural Resources, Mining and Construction

0.54%-0.11%2.11%2.24%2.06%3.47%0.936Education and Health Services

0.94%0.22%2.71%2.39%2.21%4.07%1.137Professional and Business Services

0.56%-0.48%0.11%-1.80%-0.73%-0.19%0.63Information

0.58%0.49%2.54%2.80%2.47%4.02%1.029Leisure and Hospitality

0.27%0.27%1.01%0.27%1.30%1.45%0.99Other Services

Total Employment 247 1.0 2.30% 1.50% 1.49% 1.50% 0.20% 0.52%

Source: Oxford Economics

LQ = Location Quotient


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EconomyAugusta Industrial


YEAR OVER YEAR JOB GROWTH

DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 329,473,688609,685 0.9% 0.7% 0.9% 0.7% 0.8% 0.7%

Households 121,311,797214,333 0.7% 0.5% 0.7% 0.6% 0.7% 0.6%

Median Household Income $63,968$53,728 3.6% 3.3% 2.4% 2.3% 4.0% 4.4%

Labor Force 163,600,797270,644 1.1% 1.0% 0.2% 0.6% 0.4% 0.5%

Unemployment 3.6%4.0% 0% -0.2% -0.6% -0.6% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


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SubmarketsAugusta Industrial

AUGUSTA SUBMARKETS


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SubmarketsAugusta Industrial

SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 Burke County 1,836 3.8% 8 0 - - -17 0 0 0% -

2 Downtown Augusta 2,017 4.2% 6 0 - - -122 0 0 0% -

3 Edgefield County 2,386 5.0% 4 0 - - -29 0 0 0% -

4 Evans/Martinez 2,286 4.8% 5 0 - - -201 0 0 0% -

5 McDuffie County 1,890 3.9% 7 0 - - -33 0 0 0% -

6 North Augusta 930 1.9% 10 1 40 4.3% 149 0 0 0% -

7 North Richmond County 1,090 2.3% 9 2 11 1.0% 283 1 30 2.8% 1

8 Outlying Aiken County 16,779 34.9% 1 0 - - -199 0 0 0% -

9 Outlying Columbia County 4,366 9.1% 3 0 - - -112 1 11 0.3% 2

10 South Richmond County 14,457 30.1% 2 0 - - -382 1 11 0.1% 3

SUBMARKET RENT

Growth

Market Rent

Per SFSubmarketNo.

12 Month Market Rent QTD Annualized Market Rent

RankRank GrowthRank

1 Burke County 0.2%9 4.6% 3$3.26 9

2 Downtown Augusta 2.5%5 4.5% 4$4.87 3

3 Edgefield County 1.0%10 2.8% 10$3.26 8

4 Evans/Martinez 1.4%2 3.7% 9$6.09 6

5 McDuffie County 2.7%8 5.9% 1$3.57 2

6 North Augusta 1.2%3 4.4% 6$5.53 7

7 North Richmond County 2.4%1 4.0% 8$7.83 4

8 Outlying Aiken County -1.7%7 4.3% 7$3.75 10

9 Outlying Columbia County 2.8%4 4.5% 5$4.99 1

10 South Richmond County 1.5%6 4.9% 2$4.11 5

SUBMARKET VACANCY & NET ABSORPTION

12 Month Net Absorption

Rank Construct. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Burke County 50,378 2.7% -259,180 14.1% 25

2 Downtown Augusta 28,200 1.4% -37,472 1.9% 53

3 Edgefield County 973,500 40.8% -(261,035) -10.9% 910

4 Evans/Martinez 58,017 2.5% -315,066 13.8% 14

5 McDuffie County 2,960 0.2% -153,196 8.1% 31

6 North Augusta 6,476 0.7% -3,434 0.4% 62

7 North Richmond County 61,704 5.7% 9.33,232 0.3% 77

8 Outlying Aiken County 1,067,802 6.4% -(343,083) -2.0% 108

9 Outlying Columbia County 595,195 13.6% 0.261,613 1.4% 49

10 South Richmond County 755,913 5.2% -(48,748) -0.3% 86


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Supply & Demand TrendsAugusta Industrial

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2023 70,546 0.1% -0.3%(128,950) -48,608,914

2022 74,286 0.2% -0.4%(208,654) -48,538,368

2021 68,833 0.1% -0.6%(275,580) -48,464,082

2020 58,825 0.1% 0.1%24,591 2.448,395,249

2019 51,296 0.1% 0.9%416,389 0.148,336,424

YTD 41,000 0.1% 1.1%532,894 0.148,326,128

2018 100,000 0.2% 3.7%1,770,820 0.148,285,128

2017 370,760 0.8% -1.1%(520,579) -48,185,128

2016 628,737 1.3% -2.9%(1,369,234) -47,814,368

2015 272,546 0.6% 2.5%1,191,438 0.247,185,631

2014 2,990,400 6.8% 10.7%5,001,768 0.646,913,085

2013 (570,000) -1.3% -0.2%(89,052) -43,922,685

2012 22,000 0% 2.0%885,302 044,492,685

2011 17,072 0% 1.5%685,899 044,470,685

2010 125,849 0.3% 2.3%1,000,382 0.144,453,613

2009 57,189 0.1% -1.9%(845,343) -44,327,764

2008 156,334 0.4% -1.7%(733,809) -44,270,575

2007 - - -1.8%(803,056) -44,114,241

SPECIALIZED INDUSTRIAL SUPPLY & DEMAND



2023 33,213 0.1% -0.3%(68,542) -23,643,528

2022 34,993 0.1% -0.5%(106,500) -23,610,315

2021 32,403 0.1% -0.6%(135,907) -23,575,322

2020 48,968 0.2% 1.0%229,142 0.223,542,919

2019 (479) 0% 2.0%474,433 -23,493,951

YTD 0 0% 2.3%533,827 023,494,430

2018 100,000 0.4% 4.0%946,797 0.123,494,430

2017 315,560 1.4% 0.5%124,646 2.523,394,430

2016 60,602 0.3% -5.0%(1,155,360) -23,078,870

2015 151,546 0.7% 2.2%510,526 0.323,018,268

2014 2,600,000 12.8% 17.9%4,092,294 0.622,866,722

2013 0 0% 0.6%118,635 020,266,722

2012 0 0% -1.2%(247,509) -20,266,722

2011 0 0% 1.8%368,375 020,266,722

2010 5,971 0% -1.4%(280,197) -20,266,722

2009 0 0% 1.1%226,391 020,260,751

2008 30,508 0.2% 1.0%211,837 0.120,260,751

2007 - - -2.7%(537,037) -20,230,243


Page 19

Supply & Demand TrendsAugusta Industrial

LOGISTICS SUPPLY & DEMAND



2023 23,723 0.1% -0.3%(56,506) -21,212,879

2022 24,966 0.1% -0.4%(92,241) -21,189,156

2021 23,192 0.1% -0.6%(124,296) -21,164,190

2020 6,233 0% -0.8%(177,036) -21,140,998

2019 29,719 0.1% -0.9%(181,879) -21,134,765

YTD 30,000 0.1% -0.6%(135,743) -21,135,046

2018 0 0% 4.4%921,741 021,105,046

2017 12,000 0.1% -3.7%(785,082) -21,105,046

2016 537,318 2.6% -0.5%(95,288) -21,093,046

2015 105,000 0.5% 3.0%617,331 0.220,555,728

2014 383,000 1.9% 4.4%894,389 0.420,450,728

2013 (580,000) -2.8% -1.2%(248,522) -20,067,728

2012 2,000 0% 5.2%1,080,275 020,647,728

2011 17,072 0.1% 1.8%362,189 020,645,728

2010 119,878 0.6% 6.2%1,268,829 0.120,628,656

2009 43,500 0.2% -4.8%(976,228) -20,508,778

2008 97,476 0.5% -5.2%(1,064,404) -20,465,278

2007 - - -1.0%(201,671) -20,367,802

FLEX SUPPLY & DEMAND



2023 13,610 0.4% -0.1%(3,902) -3,752,507

2022 14,327 0.4% -0.3%(9,913) -3,738,897

2021 13,238 0.4% -0.4%(15,377) -3,724,570

2020 3,624 0.1% -0.7%(27,515) -3,711,332

2019 22,056 0.6% 3.3%123,835 0.23,707,708

YTD 11,000 0.3% 3.6%134,810 0.13,696,652

2018 0 0% -2.7%(97,718) -3,685,652

2017 43,200 1.2% 3.8%139,857 0.33,685,652

2016 30,817 0.9% -3.3%(118,586) -3,642,452

2015 16,000 0.4% 1.8%63,581 0.33,611,635

2014 7,400 0.2% 0.4%15,085 0.53,595,635

2013 10,000 0.3% 1.1%40,835 0.23,588,235

2012 20,000 0.6% 1.5%52,536 0.43,578,235

2011 0 0% -1.3%(44,665) -3,558,235

2010 0 0% 0.3%11,750 03,558,235

2009 13,689 0.4% -2.7%(95,506) -3,558,235

2008 28,350 0.8% 3.4%118,758 0.23,544,546

2007 - - -1.8%(64,348) -3,516,196


Page 20

Rent & VacancyAugusta Industrial

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2023 128 0.3% 11.5%$4.59 4,587,528 9.4% 0.4%

2022 127 0.9% 11.2%$4.58 4,388,443 9.0% 0.6%

2021 126 2.1% 10.1%$4.54 4,105,847 8.5% 0.7%

2020 124 3.9% 7.9%$4.44 3,761,509 7.8% 0.1%

2019 119 3.8% 3.8%$4.28 3,726,973 7.7% -0.8%

YTD 117 2.3% 2.3%$4.21 3,600,145 7.4% -1.0%

2018 115 6.2% 0%$4.12 4,092,039 8.5% -3.5%

2017 108 5.1% -5.9%$3.88 5,762,859 12.0% 1.8%

2016 103 3.7% -10.4%$3.69 4,871,520 10.2% 4.1%

2015 99 3.6% -13.6%$3.56 2,873,549 6.1% -2.0%

2014 96 4.3% -16.6%$3.44 3,792,441 8.1% -5.1%

2013 92 3.8% -20.0%$3.29 5,803,809 13.2% -0.9%

2012 88 -0.7% -23.0%$3.17 6,284,757 14.1% -1.9%

2011 89 -1.6% -22.4%$3.19 7,148,059 16.1% -1.5%

2010 90 -5.8% -21.2%$3.25 7,816,886 17.6% -2.0%

2009 96 -4.2% -16.4%$3.44 8,691,419 19.6% 2.0%

2008 100 -1.5% -12.7%$3.59 7,788,887 17.6% 2.0%

2007 102 - -11.4%$3.65 6,898,744 15.6% -

SPECIALIZED INDUSTRIAL RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 124 0.5% 11.7%$4.28 1,778,998 7.5% 0.4%

2022 123 1.1% 11.1%$4.25 1,677,323 7.1% 0.6%

2021 122 2.4% 9.9%$4.21 1,535,893 6.5% 0.7%

2020 119 4.3% 7.3%$4.11 1,367,395 5.8% -0.8%

2019 114 2.9% 2.9%$3.94 1,547,454 6.6% -2.0%

YTD 112 1.2% 1.2%$3.87 1,488,528 6.3% -2.3%

2018 111 7.5% 0%$3.83 2,022,355 8.6% -3.7%

2017 103 5.0% -7.0%$3.56 2,869,152 12.3% 0.7%

2016 98 3.0% -11.4%$3.39 2,678,238 11.6% 5.3%

2015 96 2.7% -14.0%$3.29 1,462,276 6.4% -1.6%

2014 93 4.3% -16.2%$3.21 1,821,256 8.0% -8.4%

2013 89 5.5% -19.7%$3.07 3,313,550 16.3% -0.6%

2012 85 -1.7% -23.9%$2.91 3,432,185 16.9% 1.2%

2011 86 -2.1% -22.6%$2.96 3,184,676 15.7% -1.8%

2010 88 -8.1% -21.0%$3.02 3,553,051 17.5% 1.4%

2009 95 -4.5% -14.1%$3.29 3,266,883 16.1% -1.1%

2008 100 -1.6% -10.0%$3.45 3,493,274 17.2% -0.9%

2007 102 - -8.6%$3.50 3,674,603 18.2% -


Page 21

Rent & VacancyAugusta Industrial

LOGISTICS RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 131 0.2% 12.0%$4.23 2,416,889 11.4% 0.4%

2022 131 0.8% 11.8%$4.22 2,336,999 11.0% 0.5%

2021 130 1.9% 10.9%$4.19 2,220,103 10.5% 0.7%

2020 128 3.6% 8.8%$4.11 2,072,968 9.8% 0.9%

2019 123 5.0% 5.0%$3.96 1,889,673 8.9% 1.0%

YTD 121 3.5% 3.5%$3.91 1,843,806 8.7% 0.8%

2018 117 5.4% 0%$3.77 1,678,063 8.0% -4.4%

2017 111 5.2% -5.1%$3.58 2,599,804 12.3% 3.8%

2016 106 4.2% -9.8%$3.41 1,802,722 8.5% 2.9%

2015 101 4.4% -13.5%$3.27 1,170,116 5.7% -2.5%

2014 97 4.7% -17.1%$3.13 1,682,447 8.2% -2.7%

2013 93 2.6% -20.9%$2.99 2,193,836 10.9% -1.3%

2012 90 0% -22.9%$2.91 2,525,314 12.2% -5.2%

2011 90 -1.0% -22.9%$2.91 3,603,589 17.5% -1.7%

2010 91 -4.4% -22.1%$2.94 3,948,706 19.1% -5.7%

2009 96 -4.4% -18.5%$3.08 5,097,657 24.9% 4.9%

2008 100 -1.7% -14.7%$3.22 4,077,929 19.9% 5.6%

2007 102 - -13.2%$3.28 2,916,049 14.3% -

FLEX RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 130 0.2% 9.7%$8.68 391,641 10.4% 0.4%

2022 130 0.7% 9.5%$8.67 374,121 10.0% 0.6%

2021 129 1.7% 8.7%$8.60 349,851 9.4% 0.7%

2020 127 3.1% 6.8%$8.46 321,146 8.7% 0.8%

2019 123 3.6% 3.6%$8.20 289,846 7.8% -2.8%

YTD 121 2.4% 2.4%$8.11 267,811 7.2% -3.4%

2018 119 4.7% 0%$7.92 391,621 10.6% 2.7%

2017 113 5.2% -4.5%$7.56 293,903 8.0% -2.7%

2016 108 4.2% -9.2%$7.18 390,560 10.7% 4.0%

2015 103 3.9% -12.9%$6.90 241,157 6.7% -1.4%

2014 99 3.0% -16.1%$6.64 288,738 8.0% -0.2%

2013 97 2.1% -18.6%$6.45 296,423 8.3% -0.9%

2012 95 0.5% -20.2%$6.32 327,258 9.1% -1.0%

2011 94 -1.4% -20.6%$6.29 359,794 10.1% 1.3%

2010 96 -2.0% -19.4%$6.38 315,129 8.9% -0.3%

2009 97 -2.6% -17.8%$6.51 326,879 9.2% 3.0%

2008 100 -0.8% -15.7%$6.68 217,684 6.1% -2.6%

2007 101 - -14.9%$6.73 308,092 8.8% -


Page 22

Sale TrendsAugusta Industrial

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2023 -- - -- 192- $48.24 7.9%

2022 -- - -- 190- $47.56 7.8%

2021 -- - -- 187- $46.91 7.7%

2020 -- - -- 182- $45.64 7.6%

2019 -- - -- 173- $43.44 7.6%

YTD $25.4 M42 3.7% $21.99$1,153,822 17110.2% $42.86 7.6%

2018 $44.1 M66 10.2% $11.82$1,130,353 1637.4% $40.91 7.7%

2017 $55.4 M43 3.9% $33.00$2,517,432 1517.8% $37.97 7.7%

2016 $46.7 M61 4.8% $23.73$971,951 1308.9% $32.69 8.1%

2015 $14.6 M39 2.0% $19.13$486,965 1238.0% $30.93 8.2%

2014 $41.0 M48 3.9% $26.54$1,025,513 113- $28.34 8.6%

2013 $35.8 M39 3.5% $24.29$1,153,687 10410.5% $26.16 8.9%

2012 $23.3 M34 2.7% $23.14$775,610 988.5% $24.58 9.1%

2011 $31.6 M19 2.1% $33.70$1,754,756 9411.1% $23.71 9.4%

2010 $15.5 M16 2.1% $16.98$1,108,290 9214.1% $23.16 9.6%

2009 $5.3 M7 1.0% $13.12$876,667 90- $22.50 9.9%

2008 $7.1 M13 0.6% $24.94$547,577 1009.0% $25.09 9.4%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

SPECIALIZED INDUSTRIAL SALES





2023 -- - -- 204- $48.01 7.6%

2022 -- - -- 201- $47.28 7.5%

2021 -- - -- 198- $46.58 7.4%

2020 -- - -- 192- $45.25 7.3%

2019 -- - -- 182- $42.92 7.3%

YTD $11.8 M8 2.8% $18.86$1,969,250 1809.8% $42.29 7.3%

2018 $8.6 M12 7.4% $6.78$860,142 171- $40.28 7.3%

2017 $22.2 M7 2.0% $50.80$11,089,673 1587.8% $37.09 7.4%

2016 $10.7 M12 4.3% $13.74$1,074,532 130- $30.50 8.0%

2015 $0.4 M5 0.4% $12.12$147,533 122- $28.76 8.1%

2014 $24.5 M8 3.8% $27.81$3,058,346 112- $26.34 8.5%

2013 $13.3 M6 2.7% $24.32$2,221,509 103- $24.24 8.7%

2012 $3.9 M2 0.6% $30.08$1,934,118 978.5% $22.77 9.0%

2011 $25.5 M2 2.8% $44.33$12,765,700 9411.1% $22.06 9.2%

2010 $7.7 M4 1.7% $22.55$2,573,333 9214.1% $21.69 9.4%

2009 $2.9 M2 1.7% $8.26$1,452,500 90- $21.15 9.7%

2008 $2.1 M1 0.5% $21.00$2,121,000 100- $23.53 9.1%




Page 23

Sale TrendsAugusta Industrial

LOGISTICS SALES





2023 -- - -- 187- $42.59 8.2%

2022 -- - -- 184- $42.04 8.2%

2021 -- - -- 182- $41.51 8.0%

2020 -- - -- 177- $40.44 8.0%

2019 -- - -- 169- $38.56 8.0%

YTD $12.1 M24 4.9% $23.62$866,685 16710.5% $38.05 7.9%

2018 $34.2 M42 14.6% $14.02$1,267,606 1607.2% $36.35 8.0%

2017 $31.4 M22 5.9% $26.21$2,090,685 148- $33.82 8.0%

2016 $28.4 M26 5.1% $27.91$1,496,500 1318.9% $29.88 8.3%

2015 $8.7 M26 3.5% $13.99$397,470 1248.0% $28.36 8.4%

2014 $9.8 M21 3.7% $18.81$578,129 114- $25.98 8.8%

2013 $19.6 M23 4.6% $22.31$1,033,566 10510.5% $24.02 9.0%

2012 $16.6 M19 4.7% $20.70$976,059 99- $22.60 9.3%

2011 $1.7 M7 1.0% $8.39$245,714 95- $21.71 9.5%

2010 $5.6 M7 2.6% $10.51$928,516 93- $21.08 9.8%

2009 $2.4 M5 0.4% $47.93$588,750 89- $20.34 10.2%

2008 $2.7 M9 0.7% $19.63$294,611 1009.0% $22.79 9.6%



FLEX SALES





2023 -- - -- 170- $81.86 8.3%

2022 -- - -- 168- $80.77 8.3%

2021 -- - -- 166- $79.72 8.1%

2020 -- - -- 162- $77.78 8.0%

2019 -- - -- 155- $74.57 8.0%

YTD $1.4 M10 1.9% $102.11$717,500 153- $73.80 8.0%

2018 $1.3 M12 2.4% $60.40$628,500 1478.0% $70.93 8.0%

2017 $1.8 M14 4.0% $40.73$368,777 140- $67.19 8.0%

2016 $7.5 M23 5.7% $45.35$393,412 130- $62.66 8.1%

2015 $5.4 M8 3.7% $53.12$1,084,400 123- $59.34 8.2%

2014 $6.7 M19 4.9% $46.97$448,369 113- $54.47 8.6%

2013 $2.8 M10 2.1% $63.63$466,250 105- $50.60 8.8%

2012 $2.8 M13 2.9% $37.35$255,189 99- $47.40 9.1%

2011 $4.3 M10 4.5% $27.72$481,578 95- $45.56 9.4%

2010 $2.2 M5 1.2% $53.85$444,992 92- $44.40 9.6%

2009 -- - -- 90- $43.37 9.9%

2008 $2.3 M3 1.4% $47.48$782,000 100- $48.12 9.4%




Page 24

Augusta Market · electronics juggernaut, Samsung, taking 421,000 SF in Aiken County. The majority...

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