"The revitalization of Midtown has turned this submarket into a multifamily hotbed," Bernard Haddigan, managing director and Atlanta regional manager, says in a prepared statement.
Nearly 600 apartment units are currently under construction in this submarket and expected to come to market during 2002. Despite the recent economic slowdown, long-term demand for residential housing is expected to remain elevated with the addition of several more commercial projects in the area, the M&M analysis says.
A recent report by M/PF Research of Carrollton, TX was only slightly less hopeful. That report showed a rough fourth quarter for Atlanta's apartment market. Overall occupancy dropped to 92.1%, almost 2% lower than September and 4.3% less than the fourth quarter of 2000, according to the report.
M/PF Research's Atlanta apartment report shows that the during the fourth quarter of 2001, more people moved out of Atlanta apartments than moved into them, by 4,450.
"While Atlanta's apartment market performance had been sluggish for a while, late 2001's downturn is quite sharp," Greg Willett, M/PF Research's director of research products, said in a written statement. "It's no longer a matter of new properties struggling to achieve initial lease-up. Sizable numbers of vacant apartments now exist at every product quality level and price point."
A drop in apartment demand, and a large supply of new apartments caused vacancies to increase 1.5% in 2001, according to Marcus & Millichap. Marcus & Millichap reported that vacancies should continue to rise through 2002, due in part to slow job growth. Rental rates are not expected to increase in 2002.
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.
