ATLANTA–Atlanta was in the retail doldrums for years after the Great Recession. But with massive multifamily developments since 2010, retail has followed rooftops; and retail commercial real estate investors are getting in the game.
“With no significant amount of new construction in the last seven years coupled with the drop in oil prices adding to consumer spending will force retailers to look for expansion which will lead to retail development coming back into the horizon,” Mac McCall, regional managing partner for Franklin Street. “Cheap debt will add fuel to this fire.”
MaCall expects multifamily development to top off. He’s betting new units delivered will struggle to reach pro forma rents as supply catches up with demand for class A multifamily units. And he predicts financing should remain very attractive for the next two to three years, even with the rise in interest rates.
But what about the broader trends? MacCall notes some major things to watch.
“Real estate continues to attract record amounts of capital as yield hungry investors push pricing for all asset classes,” McCall says. “As interest rates remain historically low and the economy continues to accelerate moderately we expect this trend to continue as demand out paces supply for all product types.
“We continue to see a lot of employment growth in the real estate brokerage business as deal activity heats up. Today’s younger talent is much more tech savvy and is finding new ways to add value to transactions using technology.”