Growth in Cargo at Hartsfield-Jackson Prompts Warehouse Expansion
A projected uptick in cargo passing through Hartsfield-Jackson Atlanta International Airport is pushing officials and planners to expand warehouse facilities at the airport, particularly in the North and South Cargo complexes, according to a new report from JLL.
One such expansion project, the new 125,000-square-foot Cargo Building C, can accommodate multiple tenants and includes a new truck staging area. The facility is slated to open by November.
The need for additional warehouse facilities comes as Hartsfield-Jackson is in the midst of massive roadway improvements aimed at improving the flow of inbound traffic to the airport. The upgrades should help the airport accommodate future traffic growth in addition to making traveling through the airport safer for motorists.
“Atlanta’s airport plays such a crucial role in the movement of commerce not just in Georgia, but nationally and globally,” said Mike Sivewright, JLL’s Market Director for the Atlanta region. “The airport’s dynamic growth and recent focus on cargo import and export practices positions Atlanta as a worldwide hub for international trade.”
Among the report’s findings:
- 601,270 metric tons of cargo moved through Atlanta airport facilities in 2014 and the volume of cargo passing through the airport is expected to increase in the coming years.
- Atlanta reported more than 96.1 million passengers passed through Hartsfield airport in 2014, maintaining its place as the busiest passenger airport in the world. Passenger traffic was up 1.9 percent from 2013.
- Atlanta-based Delta Air Lines, one of the world’s largest airlines, transported more cargo in 2014 than any other carrier, accounting for 31.4 percent of the total freight moved in the United States. FedEx carried 15.7 percent while UPS transported 9 percent.
- The Airport/I-85 submarket saw vacancy rates drop to 9.0 percent in Q1 2015, with a net absorption of 1.5 million square feet. This represents 48 percent of metro Atlanta’s total market share. Though there was limited new supply in 2014, another 5.7 million square feet of space is now under construction.
- Atlanta and the United States Department of Agriculture opened a new 16,000-square-foot inspection facility to expedite plant import inspections and increase the volume of perishable cargo. The facility is the only one of its kind in the Southeast.
- Majestic Realty delivered two buildings at its MAC III development in Union City, Ga. The 1 million-square-foot Building 4 is a build-to-suit for Procter & Gamble, while the 560,625 square-foot Building 7 is a speculative facility now occupied by Menlo Logistics. Majestic also signed Walmart to a 1.2 million-square-foot lease at MAC IV.
According to Juliet Potter, JLL’s Director of Research, “the airport understands the power it holds as a global player. After completing a $6B expansion, Hartsfield now has its sights on adding cargo to its power status, through the Navigate to 2030 Master ATL Plan. It will capture cargo freight by building a 6th runway that will accommodate the largest freight aircraft in the industry.”
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