Job Growth Is Slowing, Supply Is Growing, But Atlanta Developers Are Still Bullish For 2020 (Buckhead: real estate, bankrupt)

[LynnHarris1]

Headwinds are blowing into Atlanta's economy. Just don't tell that to the city's commercial real estate industry..."

FULL STORY: https://www.bisnow.com/atlanta/news/...in-2020-101915

SOURCE: Bisnow Atlanta

[ATLTJL]

What could possibly go wrong?

[Tarzanman]

I'm sure things will be fine for those who are already doing well. https://www.cbsnews.com/media/9-amer...me-inequality/

[DreamerD]

Are CRE developers building too much too fast? The article doesn't seem to imply. As long as it's not too much supply out there, then I don't see this as a major issue. This is assuming we get a small contraction next year

[citidata18]

Originally Posted by DreamerD

Are CRE developers building too much too fast? The article doesn't seem to imply. As long as it's not too much supply out there, then I don't see this as a major issue. This is assuming we get a small contraction next year

From a CRE standpoint, my main concern would be with retail.

Metro Atlanta is still reeling from being extremely overstored during the boom years of the 90s and 2000s and we've only seen the tip of the iceberg in terms of bankruptcies and closures.

So many speculative shopping centers were built in areas (in anticipation of a future population explosion) that lack the necessary population density & income to support the retail they have. These same areas are now only slow growth or in decline.

[DreamerD]

Originally Posted by citidata18

From a CRE standpoint, my main concern would be with retail.

Metro Atlanta is still reeling from being extremely overstored during the boom years of the 90s and 2000s and we've only seen the tip of the iceberg in terms of bankruptcies and closures.

So many speculative shopping centers were built in areas (in anticipation of a future population explosion) that lack the necessary population density & income to support the retail they have. These same areas are now only slow growth or in decline.

This is a good point. I can see a lot of malls getting closed down and they take up sso much space! I think dependin on the city, this could be an opportunity. Actually now that I think about what u are saying, I read an article on how these developers are trying to add a mall to a city where many of the residents say it's not needed. Residents are speaking out but I don't know if it will be enough. Well...if one mall area gets knocked down, I can foresee a university using it and so the mall might actually be needed but that's years from now.

[wasel]

And to think that folks on C-D Atlanta said that we were crashing and burning because SunTrust was leaving. Article says job growth is solid.

[JMatl]

Originally Posted by wasel

And to think that folks on C-D Atlanta said that we were crashing and burning because SunTrust was leaving. Article says job growth is solid.

Exactly! We have way more than our fair share of continually whining malcontents that attempt to portray this as the next Detroit. It's insane.

[markjames68]

Originally Posted by wasel

And to think that folks on C-D Atlanta said that we were crashing and burning because SunTrust was leaving. Article says job growth is solid.

There’s always sector by sector changes. SunTrust will cause a number of retail banking jobs to be lost in Buckhead but there is growth in other areas.

[aries4118]

Originally Posted by wasel

And to think that folks on C-D Atlanta said that we were crashing and burning because SunTrust was leaving. Article says job growth is solid.

Originally Posted by JMatl

Exactly! We have way more than our fair share of continually whining malcontents that attempt to portray this as the next Detroit. It's insane.

Atlanta is going to Hell in a hand-basket.