In Middle Georgia, Prologis has initiated construction on a massive 1.29 million square foot distribution facility at its Prologis 75 Commerce Center in Jackson, Georgia, according to a recent company announcement.
Speculative Project Details
Located about 50 miles south of Downtown Atlanta, the project fits a broader pattern of speculative development in the region. The new facility is designed to meet demand from businesses for modern, well-located facilities while also providing the flexibility, capacity, and access needed to grow their operations. The project is part of Prologis’ ongoing strategy to expand its footprint in Georgia, where it already operates more than 20 million square feet of distribution space.
Grant Benson, Vice President at Prologis, described the project in a press release. He stated that the facility will help meet market demand. The project is notable because it will be among the few warehouses in Georgia with roofs that span up to 42 feet high.
Tall Ceilings and Market Demand
Clear height is becoming an issue for some users. Austin McDonald, President of McDonald Development, noted this trend during a recent summit. He observed that the new norm for buildings in California is 42 to 46 feet clear. McDonald suggested that as these specifications become standard, the trend will spread across the country over the next 12 to 24 months.
Market Response
Developers have responded to the high demand by kicking off 17 new projects totaling 4.2 million square feet in the third quarter. This construction boom indicates a strong outlook for industrial real estate in the area.
Other Developments
Downtown Atlanta hospital system Grady Health is developing a nearly 6,000 square foot urgent care clinic in the city’s Cabbage Town neighborhood. Grady submitted an application earlier this month with the city of Atlanta to break ground on the facility at the corner of Memorial Drive and Estoria Street. The single-story project will include 44 parking spaces, two intake rooms, six exam rooms, a treatment room, three offices, and an X-ray room.
In Sandy Springs, Beverly Hills-based Kennedy Wilson broke ground on Caldwell, a 382-unit apartment complex on the site of a former UPS office at 35 Glenlake Parkway. Kennedy Wilson bought the 7-acre site and its 133,000 square foot office building from UPS in December for $16.5 million. The project is part of Kennedy Wilson’s first joint venture with Shimizu Corp., a development financed with a $90 million construction loan from Santander Bank. Amenities will include a 2,000 square foot fitness center, a wellness suite with infrared sauna and cold plunge, a resort-style pool, an outdoor beer and wine garden, and grilling stations.
