2009

[BobKovacs]

Originally Posted by atlantagreg30127

The developers who have been strip-malling the suburbs are the ones in deep crapola right now. They've been slapping up stucco and brick strip centers every week for years and some with NO tenants lined up ahead of time. The, "If we build it they will come" chant of Atlanta retail is no longer valid, but they didn't realize it in time.

Just up the road from me is a shopping center in-between Powder Springs and Hiram that has literally sat EMPTY for over a year since it was nearly completed. The contractor couldn't secure any tenants, didn't pay his subcontract labor, and it's literally just been sitting there for months and months. Not bad looking as far as strip centers go - at least it broke the cookie cutter look most of them had. Either way - he didn't pay attention to the market and economy, didn't line up tenants, and poof - an abandoned property. I don't think anyone would have thought years ago that ANYWHERE in the metro area there would ever be an empty shopping center, but, here we are

Well, I can tell you that retail strips in Cherokee County are still doing well- all of the ones being built by me are filling up fast, and there's barely a vacant shop to be found in the area. I'm thinking PS/Hiram must be on the downslide, but it's sure not the case for some of the other burbs.

[JasonPaul]

Originally Posted by atlantagreg30127

A 50% preleased situation is a LOT better than some of the other developers are doing. Especially being in the Buckhead Triangle area, there really shouldn't be a huge problem meeting minimum leasing requirements around there. You have access to some of the wealthiest (and most reclusive) people in Atlanta in close distance to that development, and they unlike most of us, aren't holding back on spending when it comes to eating out and shopping.

The developers who have been strip-malling the suburbs are the ones in deep crapola right now. They've been slapping up stucco and brick strip centers every week for years and some with NO tenants lined up ahead of time. The, "If we build it they will come" chant of Atlanta retail is no longer valid, but they didn't realize it in time.

Just up the road from me is a shopping center in-between Powder Springs and Hiram that has literally sat EMPTY for over a year since it was nearly completed. The contractor couldn't secure any tenants, didn't pay his subcontract labor, and it's literally just been sitting there for months and months. Not bad looking as far as strip centers go - at least it broke the cookie cutter look most of them had. Either way - he didn't pay attention to the market and economy, didn't line up tenants, and poof - an abandoned property. I don't think anyone would have thought years ago that ANYWHERE in the metro area there would ever be an empty shopping center, but, here we are (I took this shot not long ago - it still looks like this)....


I have no doubt "The Street" will do well. Midtown Mile shops will probably do well enough, too. I'm not sure though that ALL of the developments going on will do as well in the next couple of years - especially those in suburban areas. Don't forget, developers are eyeing the Ford Plant property in Doraville as well right now for a complex "Similar to but larger than" Atlantic Station, on top of everything else being built.

I always thought this was a wierd location to put a strip shopping center, it's not really in the shopping area of Hiram maybe that's one reason it still sits empty. Out of site out of mind

[atlantagreg30127]

Originally Posted by JasonPaul

I always thought this was a wierd location to put a strip shopping center, it's not really in the shopping area of Hiram maybe that's one reason it still sits empty. Out of site out of mind

Technically, it's in a limbo kind of location. The shopping center itself is officially in the city of Powder Springs, while the large housing subdivision behind it is considered Paulding County/Hiram. Dunno how they worked that one out, but that's the way it sits.

Hiram was experiencing a HUGE retail/restaurant building boom until a few months ago. That whole mile of stuff on both sides of Hwy 278 was literally nothing but wooded land 5 years ago. Now there are dozens of stores, restaurants, etc. If that growth had continued unchecked like that, eventually it would have moved furhter East on 278 until it reached that abandoned shopping center. I guess that's what the developer was thinking - that when he started it things were still in full swing in Hiram, and within a year the development would reach his center and fill in the gaps. Then things went bust, gas prices went up, and people started spending less. The Pier One Imports, Goody's, and Sonnys BBQ, and a couple other stores have actually closed in Hiram due to a slower economy.

The thing is, when a developer goes under like this and doesn't pay the multiple subcontractors who worked on the property, numerous liens against that property will be placed on it by those subcontractors. It can't be sold until everything is settled. It could literally take years to clear things up unless the bank that takes it over is on top of things and can get stuff cleared up. Then you have to ask, once it is fixed, will there be enough of an economy to fill 20+ tenants in yet another center?

[JasonPaul]

Yeah that makes sense I could see how that would have worked out well. When I started working out here (off of 92) I was pretty excited that there were alot of stores. I assumed, since it was Paulding county it would be dense but there's plenty out here. Yeah I miss the Sonny's, I can't believe it didn't make it but Jim and Nicks is still here, that place is over priced and over rated, in my opinion.

[wxjay]

There's a strip mall center off of Cobb Parkway and Cumberland Blvd that is very slow to get tenants. It's right behind Walgreen's. Since I moved up there in 2006, I think 3 tenants have moved in (a wine store, a sushi place, and a pizza place). It looks silly abandoned as it is.

[Zel Ya]

Originally Posted by martarider

I would say 12th & midtown is the most interesting and exciting development. That area is a key piece of the midtown mile (horrible name) and the walkability of Atlanta city will increase dramatically as these pieces fall into place. However, I have to say, why are all these crazy developers still building? Property values suffer when there is excess supply, and Atlanta has had an oversupply of condos since the Olympics. Just STOP IT!!!!! Enoguh already. Try to contain yourselves for a while.

Atlanta has only recently had an oversupply of condos. No oversupply existed from approximately 1996 to 2004/2005.

The '80s had some good condo years but the bankruptcy of Eastern Airlines took care of that.

There were some very LEAN condo years from the late '80s to the mid-1990s. No one wanted a condo.

In 1992/1993, an upscale 1-bedroom high-rise condo at the Oaks, on Oak Valley Road near Phipps Plaza, was selling for around $112,000. I looked at them. The minimum square-footage was about 1000 square-feet. They're not small condos compared to some small condos in Midtown and Buckhead. The 3-bedroom model, with over 2000 square-feet, was selling for about $210,000 in 1992/1993. Those very upscale, Buckhead condos were tremendous bargains.

Most older condos in Atlanta were low-rise. Historically, Atlanta had just a few high-rise condos until the 1990s.

I can only think of a few high-rise condos built before the year, 1990, or so--Park Place was built in around 1987; The Plaza, on Peachtree Road, was older; Ansley Above the Park was built in the late '80s; The Grandview was built in around 1990; The Concorde around 1990, and the original Mayfair high-rise was built as an apartment building in around 1990.

From start to finish, a condo project takes a long, long time. Many condo projects were started when the market was "somewhat" decent, but the market changed very quickly, so even though condos were not selling well, the condo construction continued.

"JUST STOP IT." For the most part, it's stopped.

[tdatl]

hey rackensack, since you're in east Roswell, maybe you know this? there's a big plot of land near the Gwinnett line on the south side of Holcomb Bridge. For the longest time, it was just an empty field -- no real trees, big electric towers, that's it. I rarely drive by there, but I noticed recently there's a lot of dirt being moved there. East Village & Centennial Walk are to the west, not to mention the other side of the road... any idea what's going on there? If it's been mentioned in the AJC (as both the others were), I've missed it.

[rackensack]

Originally Posted by tdatl

hey rackensack, since you're in east Roswell, maybe you know this? there's a big plot of land near the Gwinnett line on the south side of Holcomb Bridge. For the longest time, it was just an empty field -- no real trees, big electric towers, that's it. I rarely drive by there, but I noticed recently there's a lot of dirt being moved there. East Village & Centennial Walk are to the west, not to mention the other side of the road... any idea what's going on there? If it's been mentioned in the AJC (as both the others were), I've missed it.

I assume you're talking about the Johns Creek Environmental Campus, the water reclamation and educational facility that Fulton County's building at Garrard's Landing.