Acoustic and thermal management company NVH Korea has signed a 234,000-square-foot lease at Scannell Properties’ Gardner Logistics Park in Locust Grove, Ga. Cushman & Wakefield brokered the lease for the landlord.
NVH Korea is set to occupy the entirety of Building 2, located at 381 Davis Lake Road. Last year, Scannell also signed a lease with an undisclosed transport and logistics company to occupy more than 1 million square feet in Building 1 of the campus.
READ ALSO: Industrial Leasing Trends for 2023
As previously reported by Commercial Property Executive, the property currently houses several tenants, including Home Depot, which has leased 675,600 square feet in a Phase I building. Love’s Travel Stops occupies 205,200 square feet in a Phase II built-to-suit structure. Additionally, Radial Inc. has made a commitment to occupy 760,608 square feet in another first-phase warehouse, establishing its second fulfillment center in the Greater Atlanta region.
At full build-out, Gardner Logistics Park should encompass approximately 4 million square feet and consist of six Class A buildings. The park, which started being built in 2018, will offer access to Interstate 75 via two main entry points, situated along U.S. Route 23 and Market Place Boulevard, as well as U.S. Highway 42.
Cushman & Wakefield Director James Phillpott, Senior Directors Ray Stache and Lisa Pittman, along with Senior Associate Helen Cauthen handled the lease negotiations on behalf of Scannell. The leasing efforts for all three phases of the industrial park have been under the supervision of the Cushman & Wakefield team.
Atlanta’s industrial sector holds strong
Cushman & Wakefield research indicates that despite a decrease in total leasing, industrial demand remained stable in metro Atlanta during the first quarter of the year. Following a good performance in 2021 and 2022, leasing figures returned closer to historic levels. Nonetheless, Atlanta stood out among most metropolitan areas in the country by surpassing 5 million square feet of new leasing activity in the quarter.
Moreover, the direct vacancy rate in the market stood at 3.6 percent, significantly lower than the pre-COVID-19 average of 9.6 percent, according to the same source. Direct asking rates for warehouse/distribution facilities recorded a quarter-over-quarter increase of 2.6 percent, reaching $6.41 per square foot.