Seller motivation and safe haven investors are predicted to be the synergy to drive the market over last year's figures of $1.2 billion by year-end, William C. Yowell, senior vice president, investment properties institutional group, CB Richard Ellis Inc., tells GlobeSt.com. That surge would offset what has begun as a soft area of building sales this year in metro Atlanta.
"Pension funds looking for a safer haven are diverting their investments toward real estate and that is another potential source of inflow," Yowell says. "Private markets will also become more active because of favorable financing conditions."
Yowell's predictions come despite projections of slower job growth in Atlanta that have resulted in a lower demand for space and higher vacancy rates. CB Richard Ellis expects another $200 million in additional sales volume, based on properties the firm is currently tracking.
One key player in the upturn this year could be the possible sale of the Atlanta Financial Center, which is projected to sell for $160 million to $170 million, pushing overall market sales by 10% in one transaction.
Hines Interests Inc. of Houston and General Electric Asset Management contracted in January to buy the 886,000 sf office complex but have not closed on the sale. Brokers tell GlobeSt.com that the deal is likely to be back on track this week when Hines is expected to pair up with General Motors Pension to purchase the property.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
