March 26, 2020
Ashley Capital’s Tim Schneider, vice president of the Atlanta office who specializes in acquisitions and leasing, shares insights into the current state of the Atlanta market and trends that he’s seeing. It is interesting to check in on the latest opportunities, challenges and market fundamentals, amidst the spreading coronavirus pandemic.
Q: What are the top opportunities and challenges in the CRE industry currently?
A: The top challenges that we see are weather, construction costs and the availability of professionals in the construction industry. These three elements combined make construction projects more expensive and cause an extended timeline for delivery.
Q: What’s changed over the past few years in Georgia’s / Atlanta’s commercial real estate market? Especially in the industrial real estate market?
Q: The major change over the last few years is the size of the projects and the number of deals involving some aspect of ecommerce. This has created historic levels of leasing and construction activity.
Q: Do you see any impact from the Coronavirus pandemic on the Georgia / Southeast industrial market over the next few months?
A: Since we are in unchartered territory with the situation evolving daily, it is very hard to predict the impact the virus will have on industrial real estate. That said, logistics businesses and the warehouse and distribution buildings that facilitate the movement of goods are critical right now in making necessary items available to people and companies, while millions across the country are at home. If Georgia’s governor elects to implement a statewide shutdown, businesses that are considered essential will continue to operate but will have to take the appropriate safety precautions to provide a safe work environment for their employees. Those that are not designated as essential will likely have to shut their doors for an undetermined period of time.
For comments, questions or concerns, please contact Dennis Kaiser