Commercial Real Estate on The Rebound
We have good reasons to celebrate as we approach the end of the quarter, as reported on Transwestern Insights.
The company's Chairman Robert Duncan along with its President and CEO Larry Heard believe that the future looks bright because of several good things currently happening like low oil prices, more available jobs, inflation rising at a very slow rate, and both domestic and foreign capital channeling to real estate. Investments in vacant buildings has also helped the economy. They claim that commercial real estate assets continue to perform well, and generally, vacancy and rental rates across property types show improvements.
In a report published on ABC KATV, Transwestern Insights acknowledges that more companies are now focusing on the health concerns of their employees, providing more healthy environments. Real estate firms also repurpose vacant buildings into multifamily, hotel or retail space. According to the report, "This trend is propelled by lower returns on stabilized assets due to competition, as well as an increase in debt sources willing to finance opportunistic acquisitions."
A good reflection of the national economy's growth is what's actually happening in Atlanta.
The commercial real estate and apartment industries in metro Atlanta are on the rebound, reports The Neighbor.
In the report, The Neighbor interviewed relevant personalities, who can assess this trend: David Floyd, co-founder of a landscape architectural design firm called Site Solutions and Tim Schrager, chairman of the Atlanta Apartment Association Board and also a CEO and founder of a Perennial Properties, a property management company.
Floyd states that based on the apartment industry's rebound, "There are studies showing apartment living has become the housing of choice for all age groups." He cited the Avalon in Alpharetta, "where the average age of the renter is over 40 ", reports The Neighbor.
Meanwhile, Schrager says that "In 2013, metro Atlanta had about 4,000 units delivered [completed]. In 2014, about 5,600; it's expected to be 7,000 in 2015." He describes the units produced in the years prior to 2013 as "numbers were really low because the Great Recession really shut that down." Thus, he says that it resulted to "virtually no development" and only about 1000 units were built during those years."
With these numbers provided by Schrager, one can see the growth in Atlanta's apartment industries.
Schrager adds that "retail has become an amenity" which means "several restaurants, and shops will just be within walking distance" of your building.