ATLANTA—Atlanta's emergence from the commercial real estate recession with new development on multiple fronts is creating excitement and enthusiasm. That's how William D. Montgomery, head of the Commercial Real Estate Practice Group at Chamberlain Hrdlicka in Atlanta, sees it.

But there is a “however” in his mix. The “however” is this: The enthusiasm is tempered by caution because some veteran observers believe certain segments will not support all of the announced and under construction new projects.

“These include: high-rise upscale condominiums in Midtown and Buckhead and multiple new hotels proposed for mixed-use developments in addition to those contemplated as adjuncts to the new Falcons and Braves stadiums,” Montgomery tells GlobeSt.com. “High-end multifamily projects are at risk of oversupply since they were the development option of choice resorted to during the recession.”

On the flip side, he says the segments most likely to continue to see significant development are industrial facilities being developed both on a build-to-suit basis for large major users and on a speculative basis because significant space has been absorbed and there are not many large facilities available. He also points to the upside of residential housing and class A office.

Residential housing, he says, “particularly inside the perimeter because demand far exceeds supply, and this has resulted in an uptick in sales and prices which is supporting a lot of new single family building.” And class A office buildings, he continues, “after an extended period of dormancy, are beginning to be supported by new entrants into the market—Mercedes, State Farm—and by intown, midtown and downtown relocation moves by major companies like Coke.”

From Montgomery's perspective, new developments are being spawned in the old fourth ward by the proximity to the beltline and by Jamestown's dramatic success in attracting high tech office and retail tenants to its huge new project, Ponce City Market. At the same time, Georgia Tech's ongoing production of high tech engineering, software, architecture and design graduates has the Midtown area teeming with new tenants.

“In addition, research offices opened by major companies is fueling an even greater concentration of synergistic development in the midtown complex that Georgia Tech has been involved with for the last 10 years,” says Montgomery. “On balance, the convergence of all these factors indicate that the development doldrums are behind Metropolitan Atlanta.”