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Atlanta September 2022 – Key Takeaways

  • Management fees and administrative fees are typically delineated separately in leases.  Management fees are percentage of revenue/rent collections; administrative fees are a percentage of operating expenses. (All)
  • Entitlements are still hard to get and take a long time.  (Knight Commercial Real Estate)
  • Still seeing supply chain issues:  The lead time for new construction (on projects that haven’t even closed yet):  52 weeks for new roof; pipe 48 weeks out; transformers – 60 weeks out.  Pricing (and availability) for steel and concrete is improving. (Knight Commercial Real Estate)
  • Cap rates are starting to move up because of interest rates and people on the buy side are looking closer at deals.
  • Having more difficulty moving properties (either sale or lease) than earlier.  (ATL Commercial Real Estate)
  • Developing and nurturing relationships with your clients is key; communicating with them throughout the process and developing their trust makes things easier when you do hit rough spots. (AD Commercial)
  • Leasing on the industrial side is still hot, but with interest rate hikes, some sales are getting dicey. (Georgetown Partnership)
  • CoStar Group joined the S&P 500 last week. (CoStar)

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