Good News for Atlanta

WOW! It is so great to hear some good news! I found this article and thought you might enjoy it as well. Sorry, I don’t remember exactly where I saw it.

Keep Investing,

Mark

Atlanta Real Estate Market Thrives

Despite a general slowdown of the national economy, commercial construction remains strong in Atlanta. Total construction costs for commercial and multifamily projects permitted last year in Atlanta rose by more than 50% over 2006 figures.

One component of commercial construction is especially booming in Atlanta. The construction of new hotels is proceeding at a pace not seen in Atlanta since the run up to the Olympics. Driven by a growing hospitality sector and an increasing market for luxury condominium residences, 10 hotels are either under construction or in a pre-development phase in the city of Atlanta, including two W Hotels and the first Baccarat Hotel in the continental U.S.

The Hilton Garden Inn opened to guests in March just across from Centennial Olympic Park. Buckhead welcomed a new ultra-luxury hotel, the Mansion on Peachtree, in May. Condominiums at the Mansion on Peachtree start at the $3 million mark.

The commercial real estate market is also benefiting from a growing demand for office space in Atlanta’s urban core. According to the CoStar Group, net absorption for the city’s central business district has been positive for four quarters in a row, outpacing the performance of the suburban markets, which have declined since the fourth quarter of 2007. This has put the overall vacancy rate for the central business district within 0.4% of the suburban markets. More than 4 million square feet of office space is currently under construction in the city of Atlanta to help meet this rising demand.

Allen Plaza is one example of new development taking place in Atlanta. At its completion, Allen Plaza will include more than two million square feet of Class A office space. Two office towers have already been occupied: 55 Allen Plaza, anchored by Ernst and Young’s Atlanta office, and 30 Allen Plaza, the new headquarters for Southern Company. Additional projects at Allen Plaza include two hotels, a 450-unit Post Properties residential tower and upscale retail and restaurant space.

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