This article will help anyone looking for information pertaining to a commercial real estate and commercial lending in the State of
Georgia is a largely rural state, with the exception of its cosmopolitan capital
city, Atlanta. When thinking about commercial real estate in Georgia,
unless you're thinking of vacation or recreational property, Atlanta should
be the first and last stop on the list. Even within the Atlanta area, however,
most development and investment activity has been concentrated in downtown and
midtown Atlanta and the Buckhead Neighborhood.
In Atlanta, even the housing market is still strong. Particularly, multifamily
construction, including condo-conversions, is still a booming sector. Atlanta's
residential market still harbors some speculators and investors, largely because
there's still money to be made. The median home price in Atlanta is still
about $200,000, and, at that price, demand is flat, but not dropping. Though
new construction has dropped, activity in the existing housing market has mad
up for that. Presently, that makes the whole housing market about even, but
over the long-term, there should be drastic growth in all sectors of Atlanta's
Not surprisingly, Atlanta's mixed-use market is fairly strong.
It's also flat, as demand and supply are in a pretty good balance, with vacancies
for offices and residential units both at around 10%. On the one hand, there
is some concern about a declining office market in the Atlanta area, as returns
on land purchased for office construction or with office improvements are shrinking.
Additionally, operating costs are outpacing rental rates, and strong job growth
does not appear to have any effect on top-tier properties. On the other hand,
some real estate experts see this as simply the cost of doing business, asserting
that though returns may not be as large as they once were they are still healthy.
Existing lessees in the urban core are absorbing more office space, and subleasing
Atlanta's industrial sector has had one of the highest vacancy
rates in the nation for the last few years, but those vacancy rates have been
slowly coming down and are expected to drop further as the port of Savannah
picks up more tonnage in the coming years. Indeed, the port is predicted to
double its current traffic in the next decade. It is expected that much of the
rebirth in the sector will come from warehouse activity.
There is some concern about the extent of development activity in Buckhead
as those who know the area best don't believe it has the infrastructure
to support the development boom that has been going on there in recent years.