Atlanta January 2022 – Key Takeaways
- January seems to be as busy/crazy as the end to 2021. (various)
- Retail cap rates have moved 100 basis points in one year’s time; cap rates continue to compress. (Knight Commercial Real Estate)
- Four retailers looking to expand in the Atlanta area this year: Pop Shelf (Dollar General’s $5/item store) – looking for space in existing shopping centers, etc.; Raising Cane’s, Burlington and Black Rifle Coffee Co. (similar to Starbucks) (Knight Commercial Real Estate)
- Industrial still white hot. Industrial land in Savannah, GA, has jumped from $2600/acre two years ago to $300k/acre now. (Knight Commercial Real Estate)
- Lead time for an industrial building roof is currently 12 months due to supply issues. (Knight Commercial Real Estate)
- Interest in mixed use and office space seems to be picking up. (Oakhurst Realty Partners)
- Self storage market is still hot. (Commercial Realty Services of West Georgia)
- Debt markets starting to come back on hotels with USDA deals. (31 North Capital Partners)
- Tifton and south Georgia population growing – Multi Family and self storage is doing well there; $14/sq ft class B space; $19/sq ft class A. Good opportunities as area grows. (31 North Capital Partners)
- Small office spaces going fast. (Oakhurst Realty Partners and Atlanta Leasing & Investment)
- Minty Living (https://guests.mintyliving.com/) specializes in short-term Airbnb rentals predominantly for production companies in Intown neighborhoods; great income stream off of residential listings. (Atlanta Leasing & Investment)
- Hard money loan rates running 10 – 20% depending on speed and risk of deal. (Atlanta Leasing & Investment)
- Good opportunities on Gulf Coast in all sectors – typically higher cap rates. (Southeast Commercial)
- Marketing Intelligence from the Environmental Bankers’ Association Conference. (AKT Peerless)
- From 2020 to 2021 there’s been a 28% growth in properties purchased for multi-family and industrial
- Plenty of capacity for borrowing and re-financing funds through 2023
- Office originations are increasing but not to pre-pandemic levels yet
- Retail loan originations are still about 50% below what they were in 2019
- Lodging is still “unloved” category
- Not seeing any systematic decline in real estate prices
- Self storage in demand
- Quote from an anonymous broker “I didn’t think I would ever live in a world where industrial land is worth more than office land, but here we are”
- Getting more requests from lenders in our environmental assessment reports about climate risks, predominantly related to flooding (AKT Peerless)
- Properties whose income streams have struggled through the pandemic (hotels, retail, movie theaters, fitness centers) can appeal their property assessments and hopefully lock in a lower value for three years that will help them recover. On flip side, properties that have done extremely well and have property values go through the roof can also work to lock in their value for three years and maintain some consistency. (Sorenson Law)
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