9/8/21 Atlanta Perimeter Mastermind Group Meeting

Atlanta Perimeter September 2021 – Key Take-Aways

• Words/phrases of the day:  “dazed and confused”, volatile/volatility, chaotic.
• Starting to see deals fall apart and a shift in attitude and reasonableness.  Sellers are refusing to accept any sort of revisions/changes to standard contracts – someone else will want to purchase.   (Menden Freiman)
• Leasing activity is up. (Menden Freiman)
• Volatility describes today’s market/supply chain materials.  Try to help clients plan for volatility with contingencies, escalation clauses.  (Whiting Turner)
• Cast iron prices are up 15%; structural steel up 8%.   Lead times can be 16-20 weeks for some materials; 6-8 months for others.  Have to build these lead times into your projects and plan for the worst.   (Whiting Turner)
• Savannah is chaotic:   Steel prices are high – Amazon has bought approximately 40% of steel; have had two LOIs recently just thrown out for better offers. (Colliers Savannah)
• Industrial vacancy rate in Savannah is 3%. (Colliers Savannah)
• Gwinnett and Walton Counties and northeast are strongest growth corridor for self storage.  Seeing real growth in areas of median household incomes.  (Commercial Realty Services of West Georgia)
• Trend noticed:  housing in Highlands, Cashiers, Sapphire Valley area of NC were selling for over asking price six months ago; now seeing more reasonable numbers and properties are staying on the market a little longer.  (Commercial Realty Services of West Georgia)
• Frustrating tip:  Purchasers and tenants don’t believe they need to react quickly in today’s market. (ATL Commercial Real Estate)
• Gwinnett County Chamber is largest suburban chamber in the US based on revenue; and second in US based on membership.  Gwinnett Chamber building is 60k square feet and is the largest Chamber building in North America. (N. Masino)
• Norcross/Peachtree Corners and Sugarloaf/Duluth are in the top 7 job clusters in the country, both having heavy concentration of 1, 2, and 3 story buildings.    Gwinnett also has 150 million sq. feet of flex/office industrial space, compared to 90 million for Fulton Industrial. (Nick Masino)
• Gwinnett County’s diversity is today what the rest of the US will look like in 20 – 40 years and the Chamber uses that statistic to bring foreign-based and corporate office headquarters to the county.  (Nick Masino)