Feedback Request from Recent Atlanta Investors

[Jonathan Small]

I live in Atlanta,  Georgia.  I have bought and sold more in the last 9 months than in my last 10 years of my investing.  I am looking to get feedback from those of us that have bought and sold in Atlanta in the last 9 months.

Below are some highlights from a recent CBRE Atlanta real estate report. Hopefully we can use the data and our experiences to find opportunities.

I am looking to get feedback from people that are making recent transactions.  If you are an active investor (actually bought or sold in last year 9 months) in the Atlanta area please share your experiences to the statics below:

Economy
• Atlanta’s diverse economy is expected to help Georgia realize a 4.0% GDP
growth rate, outperforming the U.S. national growth forecast of 3.5%.
• Despite the slowing economy due to the pandemic, the Georgia Department
of Economic Development generated $632 million in company relocations and
expansions in 2020, which bodes well for future activity.
• Atlanta’s higher-wage jobs — $60,000 per year or more — increased since the
by 3.0% in 2020, a positive trend as 2021 begins.

Multifamily
• Despite uncertainty in 2020, Atlanta’s multifamily sector has remained strong,
with overall vacancy just north of 5.0%. Vacancy is predicted to remain 6.0% or
below through 2025.
• Atlanta is expected to have one of the strongest rent growth recoveries in the
nation in 2021 (7.0%), which can be attributed to the region’s employment
opportunities, diverse economy and affordability.
• A dwindling supply of affordable single-family housing units, combined with
a resurgence in suburban demand bodes well for assets located throughout Atlanta

Industrial
• Annual industrial absorption is expected to remain strong through 2022. The
market has exceeded 16 million sq. ft. in annual net occupancy gains since
2014.
• Sustained occupier demand has led to landlord leverage for new leasing
transactions; new deliveries have not supplied much rental relief due to elevated
construction costs.
• More than 22 million sq. ft. is currently under construction, which will provide
needed space options to a tight market; any future impact to overall vacancy is
expected to be negligible to none.

Office
• Sublease availability has roughly doubled since the beginning of the COVID
pandemic, from 3 million sq. ft. to nearly 6 million sq. ft. Given that commercial
real estate fundamentals tend to lag general economic conditions, the sublease
level is expected to rise into 2021 as occupiers re-assess their requirements.
• A significant increase in space availability stands to place downward pressure on
average asking rents in the months ahead, but a strong employment recovery
will counteract this trend later into 2021.
• Post-pandemic, tenants are expected to maintain an emphasis on both work
flexibility and wellness for employees, including modified in-office work
schedules, continued work-from-home arrangements and access to greenspace
and outdoor workspaces.