Market Information

Market Report
December 2010

We have not updated our market report for some time now. The reason is simple – nothing’s changed. With a few isolated exceptions, we are still extremely overbuilt in most sectors of the market and are likely to remain so for a long time.

We look with some amusement at the predictions of a revived market in 2011, having seen these same predictions in 2001, 2002, 2003, etc. from the same people every year. Obviously, the asset managers want “happy news”, so these folks are more than willing to accommodate them. After all, the institutions (and apparently the investors) have very short memories. “One year from now is good enough for me!!! Let’s go find some more real estate to buy.” Or better yet, “It looks like time to build another building!”

One of our local and much appreciated competitors came out with an announcement earlier this year predicting - tongue in cheek, we are sure - that the market would recover “in 3 years!” This followed directly on the heels of another of the numerous and prolific one year predictions that we are so fond of. There was nothing to back this up, but the one year predictions lack equal substance unless these fellows have some new, higher quality Ouija boards.

The commercial real estate market in Atlanta has a long way to go before anyone can say with any level of confidence that we have hit bottom.

Word of caution to tenants: “Make sure that your agent knows how to protect you from lenders in possession.” This could save you a lot of money in 2011.