Atlanta April 2022 – Key Takeaways
• Casino coming to Georgia became closer this year. Georgian will be a limited license state. Casinos would create 50,000+ new jobs and over $5 billion in new construction to the state. Average casino customer spends $200 a day, not dissimilar to a golfer, hunter or other form of adult entertainment.
(City Commercial Real Estate)
• Starting to hear of deals not getting done because of rising interest rates. (Knight Commercial Real Estate)
• 30% of truck traffic in Georgia is pass through v. destination. (Knight Commercial Real Estate)
• Funding has been approved for 4 electric vehicle charging stations to be installed every 50 miles on the interstates in Georgia and 1200 traffic signals that can communicate directly with your car are being installed. (Knight Commercial Real Estate)
• Construction on the inland port in NW Georgia begins in the fall; this will take 1000 trucks off the interstate. (Knight Commercial Real Estate)
• Launching 13,000 sq. ft. ghost kitchen development in Marietta – a co-working shared space for chefs where food trucks and pop-up chefs can rent prep tables by the hour. (Massell Commercial Real Estate)
• Land is still hot and very much a seller’s market – don’t see any easing in prices of yet. (AD Commercial Real Estate)
• Life Sciences building being developed on 16 acres at North Avenue/Northside – very specialized build out with higher ceilings, higher loads, higher dependence on utilities, etc. 99 year ground lease. (AD Commercial Real Estate).
• Leasing activity is picking up and rent rates are high. (MendenFreiman)
• Title work and surveys are taking 4-6 weeks, which is slowing down the process. (MendenFreiman)
• Important to negotiate the time it will take to get your title into your deals (Investors Title)
• Self storage is still strong with lots of cash coming into the market; more buyers than sellers; don’t anticipate rising interest rates and inflation to effect it. (Sauls Storage Group/Commercial Realty Services of West Georgia)
• Average owners had 18-22% rent growth. Cap rates at 5 in secondary markets and secondary markets are the new primary markets. (Sauls Storage Group/Commercial Realty Services of West Georgia)
• CoStar is moving towards an all data package, eliminating geographical boundaries, and giving subscribers access to the areas of the country that they need access. Also adding more loan information on our sites (CoStar Group)
• LoopNet.com is going on a national platform with a marketing campaign encouraging the country as a whole that it’s safe to go back to work and return to the office. (CoStar Group)
• Highlights from Bureau of Labor Statistics presentation
o Surveying number of establishments who are decreasing their square footage of office state. Georgia for 2021 was 3.3% v. 5.5% nationwide.
o Nationwide total number of nonfarm job openings as of February 2022 was 11.3 million (seriously high). Total nonfarm quit rates was 2.9%. It’s not the Great Resignation, but the Great Shuffling. Seeing people resign, take some time off, and then re-enter the workforce.
o Georgia’s job openings rate is 8.8%; national rate is 7%. Georgia’s unemployment rate for March 2022 was 3.1%; a 1.3% change in 12 month period of time.
o There is .4 unemployed persons per job opening in Georgia and we’re adding 5.2% jobs each year. Jobs in hospitality and leisure are still down.
o What’s driving inflation numbers: food at home; food away; energy and CORE (shelter – rent prices; medical care; used cars and trucks)
o Atlanta’s inflation rate is 10.6%. The South is a hotspot in terms of inflation, primarily because of housing shortage.
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