Atlanta Chapter Key Take Aways!
Corporate part of the practice has been busy with four M&A deals right now. On the real estate side, have a warehouse closing in Cobb County; a raw land deal that’s in due diligence; and a commercial office deal in Missouri. Shout out to Matt Short for his help coordinating all of the out of state requirements. (Menden Freiman, LLP)
The utility sales tax exemption is a state program that allows manufacturers to be exempt from the sales tax portion of their utility bill. For Georgia, the sales tax is 6%. If you can provide that your power is being used to manufacture a good, you can get the exemption. There is also a 3-year refund “look back” period. All states in the Southeast allow this program, except Alabama and Kentucky (McGuire Sponsel)
We sold a Pepsi distribution center to a 1031 buyer back in November; property in Barrow County went under contract last summer to another contractor and it should close in about 60 days; 40 acres in Bartow County with rail that we are starting to get interest in; we are also bidding on a $60million build to suit in Texas that we have our fingers crossed about. Because the only industrial that has been built in the past two years was build to suit or finishing up a spec building, we are expecting that the end of 2026 and 2027 will be good for industrial; depending on what happens with the CPI. It’s hard to predict out for two years, given the current state of things and inflation (Knight Commercial Real Estate.
We are a single source provider on construction jobs, including design, interior, etc. It helps us control costs and our clients like that they can get everything for a project in one place. We are looking at assets that may have stagnate and helping clients add value so they can raise the rent. (BA Barrett Construction)
With many baby boomers retiring, expect there to be a lot of great real estate assets coming to market. Ringgold area is exploding with retail and smaller industrial development. Also, Stockbridge area has a lot of development, home building going on. Atlanta CRE market has a lot of business (ATL Commercial Real Estate)
We do deep cleans, rebuilds after disaster; take on projects that many other companies won’t take on (SERVPRO)
Looking for a smaller piece of land, 5-10 acres in North Fulton to South Forsyth to Gwinnett – for industrial. (A D Commercial Real Estate)
CRE Network surveys in recent weeks have indicated that people are coming off the sidelines to get back in the game; then the volatility started with the tariffs and the war and fuel costs rising; people have stayed in the game, but they are only doing deals that are surefire – fundamentally strong. Now with inflation, we’ll see what happens – the water is definitely moving slower. (Real Professionals Network)
Market is pretty active in terms of land deals – lots of letters of intent out. Have listings in Adairsville, Fairburn Road, and McDonough. (PureLand Real Estate)
Work primarily in healthcare, public sector, retail (in medical office buildings) licensed in NC, GA, TN and PA. Have a client purchasing a hospital and 27 acres of land looking to sell in Kennesaw. We need to focus on developing skill trades and rebuild our infrastructure – it’s crumbling (Dudley Thomas Spade)
We are an HR technology platform and handle the operational side behind the scenes. Help companies consolidate benefits costs and save money. (CoAdvantage)
Brokerage firm representing companies, selling office buildings and warehouses primarily in the Fulton/Forsyth County areas. (Cumberland & Worthy)
Highlights from Federal Reserve Bank – Domonic Purviance speaker
- Probably at the very beginning of this inflationary period, but we’ll have to wait and see.
- Atlanta Fed is in the process of hiring a new President
- Fed doesn’t look at any one number to determine policy; look at multiple factors and like to hear from the market to inform monetary policy. Investment in AI, though, is a huge factor.
- Everyone and everything is impacted by fuel costs and the costs always get passed on to the market.
- International migration is declining and domestic migration to GA has also decreased. NC and SC are fastest growing states now
- Georgia migration is declining which leads to less demand for housing, apartments and other real estate. People are locked into low mortgage rates so they are not going to move.
- Job growth so far this year has been positive, but as inflation goes up, we will move closer to no/low wage growth, which is concerning.
- Current environment is slow hire/slow fire. Most companies do have a headcount reduction plan, but haven’t implemented it yet.
- Most credit delinquencies are for people 50 and older and much of it is because of student loan debt.
- Mortgage delinquencies are low, but rising.
- Credit card and automobile loan debts have leveled out.
- Consumer Confidence will be driving the economy this year. Consumers feel negative about the economy, but are currently still buying. Confidence is high, but is starting to decline, so you may see consumption start declining.
- Atlanta is still below the national average in housing affordability.
Recent Comments