August Marks Strongest and Most Significant Recovery in Atlanta Housing Market

Midtown Atlanta Leads The Way –
65% Turnaround in Midtown Atlanta Condominium and Townhome Market– Since the start of the Covid19 pandemic, conventional and accurate thinking was that the intown market, specifically Midtown due to its greater population density, would take longer to recover back up to 2019 levels. Midtown Atlanta, indeed showed its recovery in August with a 78% increase in single-family-home sales, and dramatic reversal in the condominium market, up 8%. What? Only 8? Simple, the Midtown Atlanta market was down 73% this July compared to the last one. Bottom line is that people still want to live in Midtown Atlanta, and now they apparently feel more comfortable living in denser spaces.

Buckhead Atlanta remains incredibly strong with a 37% increase in single-family-homes being sold, and 18% for the condominium/townhome market.

How does these housing numbers correspond to the commercial real estate market? Favorably. Downtown Atlanta’s commercial estate continues to show incredible resiliency as demand for office space remains stable according to GlobeSt.com. In the multi-family market, demand in July returned to October 2019 levels, and is “…Atlanta has seen the strongest rent recovery of any major market since mid-May…Year-over-year rent growth in Atlanta is now outpacing the national average….”

James Kobal, Commercial Realtor
Coldwell Banker Commercial Metro Brokers
James.Kobal@CBCMetroBrokers.com | (M) 678.993.4951

Great News – Buying and Selling Commercial Real Estate Can Still Benefit Buyers and Sellers in Today’s Atlanta Covid19 Market

James Kobal – Coldwell Banker Commercial Metro Brokers
(E) James.Kobal@CBCMetroBrokers.com | (M) 678.993.4951

Great News? Atlanta is stronger than ever, a reality is confined to areas experiencing population growth, even though we deal with the accumulating stress of Covid19 and sheltering in place. Here in Atlanta we can do commercial real estate transactions in which both parties simultaneously win.

Great News in Face of Reality –
People still want and can make money from investing in and selling commercial real estate. In Georgia and particularly Atlanta, the opportunities are ripe with growth. Atlanta’s attraction continues to grow as evidenced by a strong job market, and apartment leasing increasing to highest levels since October 2019.

Reality Snapshot – Bad News Now – Great News Future
This morning, I caught up with a property manager of a well-known development in Metro Atlanta. Great news is that none of the tenants have asked for rent relief, and new ones have not postponed moving into the space. Bad news is that there are no pending deals, or at least that ones they can disclose. Such hesitancy in moving into new office mirrors what is happening in the residential condominium market, people are afraid to move into new confined quarters, but will do so once they feel the environment is safe. Although the office market for new leasing activity has slowed, it does not mean buyers can purchase or lease office properties at bargain properties. Demand for office space remains, as New York Magazine reported on July 29th.

Midtown Atlanta Skyline

Winning for Buyers and Sellers – How
1. Reasonable Expectations – Sellers need to understand that we are not pre-Covid19 levels, and thus cannot ask for such prices. Buyers need to understand that, except in distressed situations, sellers do not need to sell.
2. Educating Out-of-Georgia Buyers – Georgia’s economy continues to grow, unlike some other states. Atlanta is the strongest city in the state for corporate relocation and one of top-5 nationally for it. Therefore, low offers will probably be dismissed out of hand.
3. Analyzing the Market Situation – Before putting a property on the market or buying one, thoroughly know what is happening. Ask your commercial realtor to do their homework on comparable and neighboring properties. Contact me, James Kobal at Coldwell Banker Commercial Metro Brokers, James.Kobal@CBCMetrobrokers.com, (M) 678.993.4951.
4. Value for Buyer and Seller – Show the financial benefit for the buyer and seller, and what is the cost of waiting.