ATLANTA—Is Atlanta's office market recovering or not? We explored that question in part one of our exclusive interview with Mike Sivewright, JLL's Atlanta market director. In part two, we looked at a variety of other Atlanta commercial real estate market issues, including whether or not old malls can keep up in a new retail era.
In this final installment, Sivewright discusses investment sales and the Atlanta economy. Do you agree with his view? Sound off in the comment box at the end of this article.
GlobeSt.com: As for investment sales, what kinds of properties in Atlanta are drawing the most attention from investors, and do you see that changing over the course of the next 12 months?
Sivewright: Multifamily assets continue to lead the way from a volume standpoint, and we're seeing record pricing for Class A office properties. The assets that are trading either have experienced strong rent growth or have strong repositioning potential.
As the economy matures, investor interest will broaden in terms of assets and geography. As for the year ahead, we could see increased buyer demand in Atlanta for class B industrial properties as well as hotels.
GlobeSt.com: In closing, another big-picture question: what kind of shape is the metro Atlanta economy in, and do you see it improving significantly in 2015?
Sivewright: Atlanta's economy has experienced steady, sustainable growth in recent years, and is poised for more of the same in 2015. The metro unemployment rate has been above the national rate, but that doesn't tell the full story.
In fact, since the recovery began, Atlanta has trended well above the US as a whole in year-over-year payroll growth, and the metro area now exceeds its pre-recession peak by 27,400 jobs. We've experienced especially strong growth in professional and business service jobs; the number of those jobs has grown 17% over the past four years.
One of the real strengths of metro Atlanta's economy is its diversity. We're not tethered to one single industry that, if it tanked, would sink the metro area. Consistent and steady wins the race: you want to make sure your growth is methodical and that it's organic, and that's what Atlanta is doing.
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