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Sweid & Sweid sets up $75m industrial project in Atlanta

31-10-2024

Dubai-based Sweid & Sweid has successfully completed its inaugural class-A industrial real estate project, RP10, set up at an investment of AED275 million ($74.5 million).

Located in Southeast Atlanta, the bulk industrial development comprising 825,000 sq ft was completed on time and under budget, cementing the Dubai-based developer’s reputation for consistently delivering top-tier assets in the UAE and the US, said the developer in a statement.

The completion of RP10 marks Sweid & Sweid’s entry into the booming industrial real estate sector, positioning it to meet the region's growing demand for logistics and manufacturing space.

RP10’s completion comes at an opportune moment as the demand for industrial real estate in the US is being driven by several economic trends. One of the most significant factors is the ongoing growth in e-commerce, it stated.

In recent years, e-commerce has steadily expanded, with US online sales reaching $291 billion in the second quarter of 2024, an increase from $266 billion in the same period in 2023, according to the Census Bureau of the Department of Commerce.

This surge has placed an increasing strain on supply chains, leading to heightened demand for distribution and logistics facilities to accommodate the storage and movement of goods for both retailers and third-party logistics providers.

Alongside the e-commerce boom, domestic manufacturing in the US is also experiencing a resurgence.

According to the US Department of the Treasury, spending on the construction of manufacturing facilities has more than doubled since 2021. This uptick is largely attributed to policy initiatives such as the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the CHIPS Act.

Maher Sweid, Managing Partner at Sweid & Sweid, said these programmes have catalysed significant investments in the electronics, automotive, and semiconductors sectors.

"As manufacturers ramp up production, the need for industrial space to support these operations has intensified, making projects like RP10 critical to addressing these capacity demands," he stated.

While demand for industrial space continues to rise, the construction of new facilities has slowed significantly due to increasing construction costs and higher interest rates, he added.

According to him, RP10 is ideally positioned to capitalise on these market conditions.

"As a state-of-the-art facility designed to accommodate the needs of industrial tenants, RP10 provides much-needed space in a region that is seeing strong growth but remains underserved in terms of new industrial developments," he added.-TradeArabia News Service