Atlanta Intown June 2021 – Key Takeaways
- Industrial and multi-family continue to be the hot markets (multiple)
- Supply is so low that people are willing to pay whatever it takes to get the deal (Chamberlain Hrdlicka)
- Starting to see construction material costs go down, but prices are still high (Knight Commercial Real Estate)
- Retail development is at a dead stop; can’t make the deals work out financially with labor and materials. (Knight Commercial Real Estate)
- Truck trailer parking lots have become a lucrative business; using spec industrial lots for this model and truckers pay to sleep and use facility (multiple)
- Difficult to get properties rezoned to industrial (multiple)
- Restaurant and hospitality industry coming back to life in Savannah and there is a lot of development on Hutchinson Island: multi-family with marina, Westin with golf course, Convention Center will double in size (Colliers)
- Mitigation credits of wetlands has increased from $30,000/acre to $300,000 acre.
- Still feeling the effect of labor and materials shortage on the development side; self-storage is still a phenomenal core asset (Commercial Realty Associates of West Georgia)
- Market Intelligence: CBRE forecasts that e-commerce will account for 26% of all US retail sales by 2025, up from approximately 20% in 2020 resulting in a demand for 330 million square feet of distribution space (William B. Hare Company)
- New trend: Chick-Fil-A is using shadow kitchens to prepare meals and deliver; other restaurants are creating ghost kitchens with new food product lines specifically for delivery (multiple)
- Need: Activity scouting for development sites all over Georgia for townhomes, single family and hotel/motel for modular construction (Impact Housing Group)
- Christopher Pierre gave an excellent presentation on the West End Community Improvement District. Current priorities are: public safety, beautification and transportation enhancements. They are looking to grow membership and revenue.
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