Apartment Developers Shelve Half of Planned Projects

ATLANTA-In a move aimed to slow the rising vacancy levels and firm up asking rents, local apartment developers are expected to deliver only 6,300 units in 2003, or half of their original forecasted 12,500 units, according to a new analysis from the local office of Marcus & Millichap.

“Atlanta’s apartment market will remain subdued over the next 12 months, but encouraging economic news signals that the market is nearing bottom,” says John M. Leonard, vice president and regional manger of M&M’s local office. “An improving economy and decreasing new supply will slow the rise in vacancy and allow apartment owners to possibly experience rent growth in the second half of 2004.”

The vacancy rate is expected to remain in double-digit territory in 2004 due to slow apartment demand, Leonard says. By the end of 2003, the Interstate 20-East submarket will have the highest vacancy mark in the region at 15%.