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News and Notes on Atlanta Commercial Real Estate
By: Tony Wilbert
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Atlanta's industrial investment market is struggling. And while it's no
surprise that fewer industrial sales are closing this year, some
interesting trends are emerging. The total dollar value of done deals
increased but values fell by as much as 50 percent, according to the Riley/Fallon/Budnick
CB Richard
Ellis Mid-Year Atlanta Industrial Investment Market report from CB Richard Ellis.
Most surprising is that only six industrial investment transactions
closed in the first six months of 2009. "I've never seen anything
like this in my career," said Chris Riley, an
executive vice president at CBRE and the report's lead author. "I
got in the business in 1987 and have seen several downturns, but none
of those compare with what we have now. This one is broader and
deeper."
The number of closed industrial sales transactions actually fell by
more than 50 percent in the first half of the year. According to the
CBRE report, 14 transactions closed during the same period last year.
The lower transaction numbers take a toll on several groups in
commercial real estate. Fewer transactions mean fewer commissions to
brokers, fewer fees to closing attorneys and less business for title
insurance companies.
The total dollar value of industrial sales increased 11 percent from
January to June when compared with the same period in 2008, according
to the CBRE report. While this is a positive trend, the total sales
volume of $138.2 million was buoyed by two sizable transactions - Cobalt
Capital Partners' $47.8 million acquisition of the nine-building
Shawnee Ride complex in Gwinnett County and ProLogis' 2
million-square-foot joint venture with Stockbridge/Texas Teachers,
valued at about $62 million.
The CBRE team's review of first-half pricing shows that values
of Atlanta industrial properties fell a staggering 40 percent to 50
percent from their peak values in 2006/2007. As a result, Riley expects even fewer industrial properties to
trade during the second half of the year. "Nobody is going to sell
unless they need to sell," Riley said. "If you can hang on
for three years, there is no reason to sell. You're going to take a
hit."
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Cushman &
Wakefield Honors Elting, Parties Like it's 1979
  Cushman & Wakefield's Mike Elting, then and now.
In 1979, Mike Elting left his job at the old Citizens &
Southern National Bank to be an office broker at Cushman &
Wakefield. Five years later, in 1984, Elting took charge of
C&W's Atlanta operations and never looked back. Today, 30 years
after starting at C&W, Elting is the dean of Atlanta brokerage and
serves as executive managing director of Cushman & Wakefield (in addition
to being regional manager).
Cushman & Wakefield's Atlanta office feted Elting's 30-year
anniversary at a party last week at FAB in Allen Plaza. Brokers and
others created a commemorative placemat that included interesting and
mostly accurate notes on Elting's career at C&W. Under Elting's
watch: Transactions closed: >9,000; commission agreement signed:
12,472; Andy Ghertner insults endured: 6,972.
The anniversary caught the attention of John Santora, president
and CEO, the Americas, Cushman & Wakefield. Santora sent the
Rooster these words about Elting.
"Mike personifies Cushman & Wakefield's aspirations as a firm.
He's a leader, not just within Cushman & Wakefield as head of
our Southeast region, but in our industry and in the Atlanta business
community," Santora said. "He's a loyal and dedicated
colleague who delivers proven leadership and sound advice to our professionals
and our clients day-in and day-out, and I'm proud to work with
him."
Elting
showed his true stature in Atlanta's commercial real estate industry
early this year when he delivered testimony about his successful battle
against throat cancer a the annual prayer breakfast honoring Cushman
& Wakefield broker Mark Christopher, who lost his fight with lung
cancer 11 years ago.
This is a happy time for Elting. In addition to celebrating 30 years at
C&W, he walked his daughter Pamela down the aisle July 25 and will
do the same for his daughter Lindsay on March 20, 2010. Elting said
he's appreciative of his company and the party at FAB. "It was
humbling," he said. "It was a special evening." |
Atlanta Developer Plans Industrial Park He Can Crow About
Developer David Aldridge and Peach Hill Properties of
Atlanta are planning a massive industrial park in the Middle Georgia
city of Byron, near Macon. Aldridge filed plans this week for a
670-acre industrial complex that will offer sites from 15 to several
hundreds acres, according to a Development of Regional Impact, or DRI,
filing.
Aldridge's new plans for the Peach County property mark a major change
from what he initially planned on the site. In late 2006, he filed
plans to develop Saddle Ridge Subdivision, a development with more than
530 single-family homes on the site. This week, he revealed his plan to
convert the land to industrial use instead.
Middle Georgia increasingly is competing with metro Atlanta for the
huge distribution centers. Kraft and other big users have taken a look
at Bibb, Houston and Peach counties for possible sites. It's nice to
see some industrial activity, or at least planned activity. We
especially like one thing in particular about Aldridge's plans. He has
renamed the development "The Roost."
In case you missed us, click here for past issues! | |
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