Discussion among several Real Professionals Members at the recent Perimeter Meeting centered around issues facing industrial development in metro Atlanta. According to David Barrett, BA Barrett Construction, building and developing industrial product is getting more challenging with the lack of skilled labor coupled with very high land values. He illustrated his point with an example 150,000 SF warehouse that would now require $5.25 SF rent to get an adequate return for potential investors – above a realistic rate in the current market. “It’s not possible to pay premium for land and premium for construction and still get low rental rates,” he explained.

Other members stressed similar concerns with Mike Dvorscak, The William B Hare Company, adding that lending for industrial has been restrained further adding to the industrial woes. Industrial development disparities exist along geographical boundaries in Metropolitan Atlanta and its exurbs with I-20 West being more attractive because of a strong manufacturing base in Conyers and Covington. Areas east and further south of the perimeter aren’t attracting as much industrial development especially with the current unfavorable conditions.