There are a lot of positive elements taking place in the Atlanta retail market – occupancy is at its highest in seven years, new construction is increasing and the average rental rate remains low. What’s more, analysts anticipate the growth to continue with the overall occupancy rate increasing through the end of 2015.
While high occupancy levels and low rental rates seem to be contradictory, no one is complaining about the impact it’s having in the industry. Driving the major growth in the retail market is the increase in new apartment developments in-town and suburban mixed-use developments such as the Avalon in Alpharetta.
However, the average rental rate remains low due to the abundance of outdated properties in outlying areas that are unattractive to retailers and thus difficult to lease. Retailers realize slightly higher than average rental rates in urban markets but not as high as it could be without the vacancy in rural markets.
While this news is positive and developers are hopeful it continues, Atlanta is not unlike other markets where the greatest challenge continues to be from e-commerce retailers. To compete with the convenience of on-line shopping, developers will need to be creative in their approach in creating destinations for the brick and mortar retailers to attract consumers.
McWhirter Realty Partners helps companies find current retail pace but also identifies, develops and manages new construction opportunities. Contact us today or visit our listing page for more information.
As a property manager, a thorough budget is necessary to managing your property’s financial performance throughout the year. The budget should serve as a guide to allocating funds and help prevent large variances. While the task is daunting, especially when managing multiple properties, these tips should help with the process:
- Identify Trends: A good way to forecast how money should be allocated is to review previous budgets and actual expenses to recognize spending trends. It’s also helpful to research industry metrics to compare how funds are allocated or even identify areas for cost-saving.
- Plan for Capital Expenses: Building systems and structural components like the HVAC and parking lot can be costly to repair and replace. By inspecting such areas and keeping up with routine maintenance, property managers can make an educated projection as to when the systems might need replacing and budget accordingly.
- Allocate for the Unexpected: While somewhat of a guessing game, it is necessary to have an amount designated for unanticipated repairs. Depending on the size of the property this could be anywhere from $500 to $2,000 of the overall budget.
- Review Budgets Quarterly: Budgets can be adjusted throughout the year allowing funds to be reallocated if necessary. Look at moving funds from an area with a surplus to the area that suffered an unexpected expense.
McWhirter Realty Partners manages properties throughout the southeast including office, medical office, industrial, retail and self-storage. If you have a real estate investment and are considering a property management company to maximize the return on your investment, contact McWhirter Realty Partners today.
The I-20 West/Fulton Industrial submarket is located along I-20 toward Douglasville to the west, Austell to the north and the Chattahoochee River to the south in Fulton County. It is currently the third largest of the nine defined industrial submarkets.
The location is convenient to major interstates, rail lines and Hartsfield-Jackson International Airport which make it an obvious option for e-commerce fulfillment centers and warehouses. Southwire and APL Logistics both renewed warehouse leases in the area recently.
While vacancy rates for the industrial market overall remain low, there was an increase in spec industrial space causing the submarket to see a slight increase in vacancy. This new supply will provide more options to prospects specifically looking for warehouse and flex space. Prospective companies should not expect the increased vacancy to lower rental rates however, as the Fulton Industrial market has seen the highest increases in warehouse rents year-over-year.
Atlanta’s industrial market overall has seen significant economic growth and the I-20 West/Fulton Industrial submarket will continue to be in high-demand. McWhirter Realty Partners has extensive knowledge of the industrial market and its submarkets. If you have questions about industrial real estate available in the metro Atlanta area, contact us today.
McWhirter Realty Partners focuses on brokerage, property management and development services with expertise in industrial, self-storage, office, retail, medical and land sales throughout the United States. The company consistently ranks as a Top Ten Producer as recognized by the Atlanta Commercial Board of REALTORS. McWhirter Realty Partners is located at 300 Galleria Parkway, Suite 300, Atlanta, Georgia 30339. www.mcwrealty.com.
 Colliers International Research & Forecast Report Q2 2015 Industrial