Atlanta May 2023 – Key Takeaways
Real estate side has slowed down a good bit; things are sliding out of contract; properties are going into foreclosure. Had a case where seller filed lien on themselves for money, they didn’t pay themselves for building out the space. Crazy! (Menden Freiman)
Seeing slowdown in activity on industrial side; banks have shut off credit, so not much going on. Good news is supply chain issues are easing, with the exception of electrical switch gears and transformers. (Knight Commercial Real Estate)
Land business has also slowed down. The only lending that is going on is between parties who have a long-standing relationship. Sending packets out to lenders to see who will give you the best deal is pretty much dead right now. Multifamily is still quite active. (AD Commercial Real Estate)
Photography business has been busy lately and have even done some office property shoots, including a Class A midrise (Capitol Photography & Video)
Self storage is not listing as fast as it was (Commercial Realty Services of West Georgia)
This year has been busy, with a lot of activity, but haven’t made much money. Several things are coming to a head now: had 2 closings this month. (ATL Commercial Real Estate Inc.)T
Triple net work has come to a halt (Slutzky Realty Group)
Tenants are already thinking they should get lower rental rates. What do you tell the client? (Slutzky Realty Group)
The landlord is not the decision maker. The lenders are the ones who pull the strings. There are minimum leasing requirements attached to loans and the landlords have to follow those. The landlords have their backs up against a wall. Lenders are not going to be reasonable on the front end. Go for free rent and TI. You usually apply your TI allowance to your rent, if TI not needed. (Sheley, Hall & Williams, PC)
Office utilization nationally is 50%. It’s going to continue to be an issue; no one wants to go back to work and companies are starting to demand that employees come back to the office. (Massell Commercial Real Estate)
Ryan acquired Marvin Poer and is a property tax consulting and commercial real estate valuation firm. Taxes are the highest expense on anything you do. We represent a lot of development authorities to make sure the valuations are accurate. Offices are currently taking a hit; it’s a good thing if you’re not leasing an office building. One very popular trend now is single family residential leasing – it’s very hard to value. (Ryan).
Lots of activity this year, but not a lot of money has been made. Seeing a lot of activity on the user side; owner occupied side. Still seeing rates go up with industrial and seeing more subleases. Also seeing an uptick of business from autism groups due to the new Georgia law on education. (McWhirter Realty)
Doctors looking for medical office buildings are a big part of the pipeline right now. They have money to spend. There’s going to be big multifamily development project in Buckhead off Roswell Road and across from Peachtree Presbyterian. (Massell Commercial Real Estate)
Sellers still have high prices in mind – they haven’t come to terms with the fact that prices are coming down. Things are not looking good from the lending side. (Massell Commercial Real Estate)
Companies can leverage money off company-owned life insurance policies (Emergent Financial Group)
Susan Wise Manager of Business Development – Henry County Development
Over the years, our industrial market has made us strong.
We have the best metro access to Savannah.
We’re serviced by Norfolk Southern railroad.
We’re 12 miles from Hartsfield-Jackson.
We are the 9th largest county in the state and the fastest growing.
We are the county with the most DOT projects going on.
We’re making a concerted effort to upscale jobs, positions and skill set of our residents.
Growing industries are
Advanced Manufacturing
Distribution, Supply Chain, Logistics
Healthcare
Professional Services – call centers, customer care in connection with mfg.
Data Centers – Mission Critical. Getting lots of activity here related to Virginia tapping out on its power source; we hope to capture some of that business.
Working on a truck only lane from Macon to McDonough.
Adding an exit at I-75 and Bethlehem Road which will provide truck route access to multiple industrial sites.
We currently have 6-7 industrial parks in the county and have another 5 in the works.
Want to bring higher end retail to the County.
Henry County is considered the most affordable and is 2nd behind Savannah in amount of industrial space.
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