Big warehouse projects to bring jobs to Henry, Fulton counties


Metro Atlanta’s surge in warehousing, fueled largely by e-commerce, accelerated Tuesday with a pair of moves that will bring 1,600 new jobs to south Fulton County and likely hundreds more in Henry County.

British online fashion giant ASOS said it will open an East Coast “fulfillment center” in Union City that will employ 1,600 people over the next five years.

Panattoni Development Co., meanwhile, announced it has started work on a new phase of the Lambert Farms Logistics Park about 20 miles south of the Atlanta airport, and that a large consumer brand has agreed to lease about 1 million square feet. It didn’t name the tenant.

Warehousing isn’t sexy, and jobs within the sector often are not high-paying or glamorous. But the movement of freight is often a bellwether for the economy, signaling the direction of consumer spending and business investment.

Georgia is a logistics hub for the Southeast, and the Atlanta region has seen a surge in new warehouse development and leasing. Much of it stems from the rise of online shopping.

ASOS joins the ranks of Amazon, Tory Burch, Home Chef and others in establishing new distribution centers in the metro area in recent years as merchants streamline their supply chains and seek to get products closer to consumers.

About 12.7 million square feet of industrial space was filled, or “absorbed,” in the first half of this year, and vacancy in the region’s industrial space stood at 8.4 percent, according to real estate services firm Cushman & Wakefield.

That absorption level was a record, while vacancy held steady. Development is also on a precedent-setting level, the Cushman & Wakefield report said, with about 7.7 million square feet of speculative space added in the region through June this year, the report said.

Gov. Nathan Deal’s office said ASOS will spend $40 million on the new center at Majestic Airport Center IV along South Fulton Parkway.

The project was sealed during an economic development trip to England over the July 4th holiday that included Deal’s chief of staff, Chris Riley, and the state’s top recruiter, Pat Wilson, Riley said on Twitter.

Prime locations

Majestic Executive Vice President Stan Conway called the deal “validation that developing first class real estate in prime locations will continue to grow Atlanta as the premier e-commerce hub in the Southeast.”

ASOS, which specializes in apparel for young adults, sells its own branded clothing and apparel by other makers.

The Atlanta region is a rail and trucking hub, and the state boasts the ports of Savannah and Brunswick, as well as Hartsfield-Jackson International Airport.

Atlanta, the ninth biggest U.S. metro, has the fourth-largest amount of industrial space — largely distribution centers, according to CBRE Research. E-commerce companies, retailers, food processors, grocers and others use metro Atlanta as a regional distribution point.

Brent Dorfman, ASOS’s vice president of logistics, in the release called the Atlanta area “an ideal location for us.”

“It is a vibrant and growing international city with a diverse culture,” he said. “We will use the region’s transportation network and deep pool of talent to deliver ASOS’ best-in-class service to U.S. customers.”

An ASOS spokeswoman said the facility should open in the next 12 months.

The state agreed to provide a $1.6 million grant to the company, and ASOS is also eligible for other state incentives including tax credits for each eligible new job created. If ASOS creates 1,600 eligible jobs, the tax credits could be worth $14 million over five years, according to an Atlanta Journal-Constitution analysis of Georgia’s incentive offerings.

New phase in Henry

In its announcement, Panattoni said it has started another phase of its Lambert Farms industrial park east of I-75 in McDonough. Lambert Farms has already landed the Tory Burch distribution center, expected to open later this year and to employ more than 150 people.

While the tenant wasn’t disclosed, people familiar with the matter said Swiss chocolatier Lindt has been scouting locations south of Atlanta for a new complex, which could include some light manufacturing.

County building permits list improvements to the site under a codename: “Project Murphy.”

A representative for Panattoni declined to name the firm. A message left for Wit Truitt, a broker with JLL who represents the project, was not immediately returned.

Lindt officials did not respond with comment before publication.

MYAJC.COM: REAL JOURNALISM. REAL LOCAL IMPACT.

AJC Business reporter J. Scott Trubey keeps you updated on the latest news about economic development and commercial real estate in metro Atlanta and beyond. You'll find more on myAJC.com, including these stories:

Never miss a minute of what's happening in local business news. Subscribe to myAJC.com.

In other Business news:



Reader Comments ...


Next Up in Business

Metro Atlanta home prices jump 10.3 percent since last year
Metro Atlanta home prices jump 10.3 percent since last year

The median sales price of a home sold in metro Atlanta last month jumped 10.3 percent from the same month last year, according to a report by Re/Max Georgia. The region’s real estate market slowed as it typically does in the autumn, the number of sales falling from September this year. Compared to a year ago, sales were essentially flat &ndash...
Small Business Saturday focuses on shopping at mom-and-pop stores
Small Business Saturday focuses on shopping at mom-and-pop stores

If Black Friday crowds exhaust you and Cyber Monday feels risky, mom-and-pop business owners in metro Atlanta have a proposition: shop Small Business Saturday. Instead of elbowing your way to that discounted TV at a Big Box retailer this weekend, you should patronize independent shops, where you can slow down, get one-on-one service and perhaps find...
Lawsuit charges Equifax failure is already costing consumers
Lawsuit charges Equifax failure is already costing consumers

Consumers from across the country have joined in a class action lawsuit against Equifax, arguing that the company’s failure to protect their data earlier this year has already led to misuse of the information. The suit, filed in U.S. District Court in Atlanta, alleges that data taken from Equifax has been used in a series of frauds, from attempts...
Hartsfield-Jackson to reduce land for hotel, give rent discount
Hartsfield-Jackson to reduce land for hotel, give rent discount

Hartsfield-Jackson International Airport will give a $500,000 annual discount on rent to the developers of a hotel next to the terminal, as a concession for reducing the amount of space for the hotel by a couple of acres. The airport on Monday got Atlanta City Council approval for an amendment to its 50-year lease with Majestic Carter Atlanta...
Hartsfield-Jackson preparing for record holiday crowds

With record traffic expected at Hartsfield-Jackson International Airport over the Thanksgiving period, crowds are already filling the terminals and concourses of the world’s busiest airport. More than 299,000 passengers passed through the airport Wednesday, based on Hartsfield-Jackson forecasts. Thanksgiving Day itself will be slow at the airport...
More Stories