Andersen Starts Construction on $420M Manufacturing Facility

Groundbreaking ceremony for Andersen Corp.’s manufacturing facility in Locust Grove, Ga. Image courtesy of Andersen Corp.

Door and window manufacturer Andersen Corp. has begun construction on a new $420 million, 638,000-square-foot manufacturing and distribution facility in Locust Grove, Ga., for its Renewal by Andersen division.

Construction is expected to be completed in late 2024, with operations beginning in 2025. Clayco is the project’s general contractor.

Locust Grove is in Henry County and about 35 miles south-southeast of Atlanta along Interstate 75. In a prepared statement, Locust Grove Mayor Robert Price referenced the value of a planned I-75 interchange roughly 3 miles north of Locust Grove.

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The project is being built at The Cubes at Locust Grove and will be Renewal by Andersen’s first manufacturing facility in Georgia, joining an Andersen Logistics distribution center in Douglasville, Ga.

Rendering of Andersen Corp.’s manufacturing facility in Locust Grove, Ga. Image courtesy of Andersen Corp.

Andersen Corp. is one of North America’s largest window and door manufacturers and along with its subsidiaries operates more than 20 manufacturing and distribution facilities. Renewal by Andersen is Andersen Corp.’s full-service window replacement division, which manufactures, sells and installs replacement windows across North America.

Calming market

In June, NVH Korea signed a lease for a 234,000-square-foot building at Scannell Properties’ Gardner Logistics Park in Locust Grove. The company is headquartered in Ulsan, South Korea, and manufactures a diverse range of automotive components, including battery parts for Hyundai and Kia electric vehicles; parts for controlling automotive noise, vibration and heat; and floor mats, cargo mats and cargo trays.

The metro Atlanta industrial space market is seeing demand moderating from pandemic peaks, with leasing and net absorption both declining substantially year-over-year, according to a third-quarter report from CBRE.

Rendering of Andersen Corp.’s manufacturing facility in Locust Grove, Ga. Image courtesy of Andersen Corp.

Another factor is a record-setting 12.7 million square feet of deliveries in the third quarter, essentially all of it speculative. Not surprisingly, average vacancy rose to 5.8 percent, the highest level in almost three years.

The Southeast I-75 submarket has seen nearly 4.3 million square feet of net absorption year-to-date, on an inventory of 71.5 million square feet, resulting in a 5.0 percent total vacancy. Space under construction totals 5.2 million square feet, CBRE reports.