Here We Go Again--Development in Atlanta...Ferguson... Going Global?

Development Ramps Up Again in Atlanta: The market office vacancy rate is 17% (down from the mid-20s), but developers are resuming activities, specifically in uptown Buckhead, the city’s most desirable submarket. The rationale goes–after a nearly six-year hiatus in construction enough tenants will want the benefits of amenities in new buildings and first out of the ground projects should score. Have we seen this movie before? Too many first out of the ground projects get built, keeping the market chronically oversupplied. If you own a property down the block from any of these projects be worried, especially if you have an older vintage building with leases rolling over in the next two to three years. Get ready for another round of tenant musical chairs, and no owner should want to get left out standing along Peachtree Road.