Lease rates, land prices and overall investment are up across all sectors of real estate according to Atlanta Real Professionals Members and guests, but so are all of the costs of doing business. Steve Farrar with Newburger Andes estimates new construction costs in the range of $70/SF due to high costs of labor, steel and concrete with electrical and plumbing costs drastically increased. With such high demand in construction, multiple members cited incidents of vendors being too busy to respond to requests for estimates. Additionally, roofing contractors are reporting four price increases so far this year not including steel and aluminum tariff increases.

In spite of high construction costs, Atlanta members believe that the area is positioned for continued success. Even as interest rates are creeping up causing a compression spread not typical of the past since cap rates are not increasing accordingly, activity and demand remain strong as noted by Mike Dvorscak of The William B. Hare Company.