Atlanta's delayed economic recovery may actually help our apartment market in the long run. (Blessings in disguise, appropriate for Halloween.)
That came from our panel—CohnReznick's
Jonathan Bartlett, Post Properties CEO
Dave Stockert, Gables Residential CEO
Sue Ansel, and AMLI Residential Partners CEO
Greg Mutz— during this week's
Bisnow Atlanta Multifamily Summit at the Grand Hyatt in Buckhead. Atlanta is actually better positioned for apartment growth because it took us so long to get out of the recession, Dave says, with a fair amount coming online in Buckhead, Midtown, and Old Fourth Ward. But the demand seems to be enough to absorb the new product, and we're
not at risk of overbuilding that other markets may be facing, like Austin. (That means no empty buildings, which means no ghosts. Not as good for Halloween.)
Sue says Atlanta
may be stronger than some of the other markets in the US. The big difference this cycle is the
focus on the urban core for new development, she says. That, in the long term could create some "
pockets of weakness." (That's the same phrase we use when we ask our parents to buy us dinner.)
Other trends that bode well: Dave told our audience of
400 that housing starts are still well-off from the peak, and
no condos are being developed. That will keep consumers focused on the apartment market, particularly Post's primary customer: Singles at a
median age of 30 who "want to be closer to
where the action is." Greg (here with Niles Bolton Associates'
Niles Bolton) echoed those sentiments and says, believe it or not, that the
divorce rate has a big impact on apartment demand (and the futon and pizza markets). When the recession made the divorce rate drop in 2008,
"that just killed us," he says. Now that it's back up, AMLI and other apartment operators are picking up renters on both ends of the spectrum.
Signs, signs, everywhere are signs. For our
sponsor DeNyse Cos, that is. We caught up with DyNyse's
Richard Swartz, Jeff Holley and
Alex Eison, who say the company is getting more
requests for signage for new apartment projects throughout the metro area.
We also ran into DPR Hardin's
Russ Brockelbank, Whitney Thrower, Dave Conlon and
Roger Watson, another sponsor. The company is
fresh from its merger (of DPR and Hardin) and already busy on the housing front. The company recently announced that it was awarded the GC contract for Preston Partnership's
$32M Crescent Howell Mill mixed-use project that includes some
250 luxury private residences. Check back tomorrow for some more insight from our panelists. Send your news to Jarred@Bisnow.com.
