Atlanta, through the Lens of a Commercial Real Estate Veteran

Over the last eighteen months, Atlanta has seen an influx of new residents. I was able to chat with a local commercial real estate expert recently. He’s lived in other major metropolitan cities out west and has a unique perspective. I was curious to hear his thoughts on Atlanta as a city and from a commercial real estate perspective.

He’s bullish on Atlanta and believes the city has the ingredients for sustained growth. Here are a few takeaways:

  • Expandable – The city has undeveloped and underdeveloped areas to support its growth. Other major cities, such as San Francisco and New York, have a limited ability to expand to support residential and commercial real estate growth. We specifically discussed the west side of Atlanta; for instance, West Midtown.
  • Tech hub – Several large companies are establishing tech offices in Atlanta. Some of them have had small offices or small teams based in the city in the past. This time is different. Some are constructing entire buildings and hiring thousands of employees. See here, here, here, and here. These employers are bringing high-paying jobs that many believe are less susceptible to economic downturns. And all those employees are looking for housing and can afford more (especially if they’re coming from more expensive markets).
  • Insufficient housing supply – Single-family homes are likely to be in short supply for the foreseeable future because of the city’s popularity as a place to live and other factors. Builders are playing catch-up, but it’s going to take a while.
  • Warehouse demand – Warehousing space is in high demand like never before. Properties that were vacant for many years are being snapped up or leased at a record pace. Some industrial areas with lots of warehouses are experiencing a renaissance and being turned into trendy mixed-use space.

I found these insights interesting, especially since they’re from a seasoned real estate expert. All signs point to Atlanta growing for the foreseeable future. It’s a great city, and I can’t wait to see what the future holds!