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ii} ·.JNational Real ·Estate,. Inv~stor, Nov. 1964 is-s~_~ ) .i . (:·:8 ..-gu:iranice morigagcs io : $30,000 per Atlanta is unique in that · both ·th~. ,-\/parks, maay of · which have ·been prounit", up from . $25,000 .. Under condo- · downtown and suburban areas ha.Ve ··,... moted by railroads. _Most of_the. i;rowth . ·.·· / \. · m:jnium, individual niottgages .are writ- ··-continued to grow about equally. · .·...:· 1.:=:.at this time · is taking . pl~c·1; in ·such 1
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'. ' .. teil j_ for each apartment; instead . of a ·
Apartment Houses: : ~tfanta has.: : -::.l'arks locat.cd along -~he crly·s express,:-:~-.:·.,t ·,! ·
!~~\ : blanket mortgage·. on the building as
shown a remarkable aj,1lity to absorb ..: L'way system. A new development has
~·/'-1:. with cooperatives: : . · . :
garden-type apartment µnits, :\Yhere the .·.:_. / l.leen· the trend from comb.i ncd office-_
,::;~,; · .: Demand continues . 'brisk for the . vacancy rate at this time , is al;,(?Ut 7% _.::: < nod-warehouse . space.. to 1Q.~% office .
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':'.·.'.> : FHA-insured . condominiums, but · the · :High-rise apartments have not :done.· sc;._.;';.( space. Such a deV.1.!lopment 1s already
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ij./~· .market seems surfeited ·.with luxury .. .well. The vacancy rate there .would I;)Jn .. =.) underway on the NortheastExp~essway.
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.. (~f:-::;.:.:.: con"domlnium3. De3pltc the -high ·num- ·. 12% to 15%. The difficulty appar~ . .<It is called Executive Par.k 1uid ;involves . , . ::.:, ' bcrrt.dof v_a~ancies, 'ht<;>wcvetr; bnewb 1.ultxury . ·. en~ty lies inrotvh~defacthtethsaatm .·aegaarcdceonm-tym·Po: \ .. aboTuhte lvla5c· aanccrycsr.·ate: ·1:n m·· o:~·c ;~.· I-story·
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1.','.:"·.; : .co omm1ums con mue _o .e u, .
um can p 1
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.~;.:;· .· The paradox of the new condo- · -dations at about 25% less rent. Th~r~'.'.:·:'.fodustr-ial properly 1s. ne~l.1~1ble. The
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f~\i:.' · .miriium apariment · building that rises has been from time to time evidence .of /-vacancy in' old loft-type bur_ld1ngs woul~ . :. · =·:.-:(. ::.·'.::.:·.
f;{";::: . alongside another recently built, and
rent concessions, but the practice is:1101 .··C:,J- run about .' 15%. · M;my ·· have baen ·
, t :'7: :: parJ)y empty . aparti:nent house, has its wide-spread and the concessions are ·riot '\·'. ·'.demolished ··in_.'connection With · urban
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_exP,,lanntio~: Promo.ters hav.c large sui:ns · substantial.
. . . ·; . ·. ·,· . : .\ r~development, : .exprcss":'~Y, ~ondem~a..
, , • ,...
!,~··: of money mvested ,m the propetty, a'1d ··
The rate of construed1101n .d1s abodut the ··\ _t100 afnd to cdreate p1:uk1og . ..:.'fhehg0 ~ 1
•':,:-":. ·.: ". ~, long as they. can -obtain b~nk financ- . . same. as last year, an_ . an .a n con-: :· i- ·., J:,~ '!. . or ·,mo ern :·. -~tory . -~are .
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.t ?. > mg, ·prefer .to push ahead m the face .. . structJon costs have mcrease_d. 5% : to ) .< ~~.d run 6.0:'75 cents per:_5.q. ,ft., but .
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V~}' . ·oc :a weak market rather than see ·their. ., 10%. The suburban mar1cet has d~ne :!.:_
1·.,-ra-ngmg upwards to $1 per.-.5<1; ft •. for ·. '·.. · ,.
·;\ \ .. funds · idling in unused latid. Then, if ·.. ..better than the downtow~.m~rket, pr.i~ -::.'J expressway . locations ~a:v.ipg , a:. good
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customers arc not · found promptly 10 · :- marily because most of the garden~~ype ·) . advertising .value. , .
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· ~<;_., · buy the cori«;Iornioium apartments, some . ·:.-.units are uburban.
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gf ·th11· ypits ~qn ~e rented convention•
The first nine months·. of l 963 ·'tfas'.\.:
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~r c;:t.~~J?i~a':···b~:!m;;:x,th~:
t~;h 143.215.248.55o~~a~~':1ec~~yoi~~1di~; ;!~-~ris~ .-:i
bcUcr
month Ir rental.__ :
· Th previous high reco_r~ was for . t~.e" ,:,.".'.
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.Apaacrtam.n
ce1net.ss:·H01sfet.1
·cme_s .
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.. Moreover, some .,·developers are
l'11llre year of 1962. Through Septem-. ' './.
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building directly for apartment rental.
I·~r JO, the city issued buildin~. p7rmits.:.J... · Washi~gton, D.C, .- Ap~rtment va- · : ,..·. ·:::;/·· ·
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vall;led at-$127,903,326. Permits 1ssu~d; .,\ cancies rose from 1.59% a year ago to . _; . ~:·:~· :; }· · ·
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· dl;lrmg. J9~2 totaled $11~.~48,33.8'.·,.(( 1'.88% this summer. This ill on build- . · .- · .;;,i'. .· ·.:· ··t·:
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City Butld)ng Inspector ·Wil,ham ·, ~ ·.· :,., ings that were -once nearly completely · .', .-;..:-_,-;. ·. :. ':·
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i1fi1~~ ~; ~;re;~~ t!;
OC7i°(?ied.' It does not inc}ude the new . ·......
'. ,, · : :.Atlan1a; Ga.-As 'a re·a1ty market, · permits represented. a. cross section ·of ,r: .~%~mgs. A _truer rate IS .111.ore near ,./·· ~.? . .
· .':, · ·• Atlanta is indicating rio lag in continu- ; , . al~ categon7s C?f butldmg!, Mr. Woffo~d:, _.. ,·. The 96.8% office building occupancy .. .,_.. : l'.'. :,:'. 'f-'. '.~.. ·· i~g progressive operations: .Thomi)s V.
said,. ao d 1Ddi~ated an ,mc~ease ~y.er.<·,t,. t · th . I w t s· e 1960 Overall
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r.-:..uble, pres1·dent of the Atlanta Real
previous years ID all categories. . . . ·,·.,·'la e is e o e~ '"S
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· ::. ·.; ...,..office space .vacancy 1s prooa y more
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· .: . · -~late. Board and vice -·president of t~e
. O~erall, the Fed~ral Housmg ~dm,n- ·1' · Jike 8% now,.'including the many new
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· :::.. · ...:Adams-Cates Company, ·reviews the . 1strallon here eSllmates _. th~ _vaca~:Y\/. buildings just .- on ·the market. .
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. !i p~bper(y .categories here in this manner: rate for apa~tments and: res1deoces,.:m . .:-'.· : .The supply . of ·new offic~ buildings
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Offlce buildings: A .survey made late . the .metropohtan area at. .3.S~ · Postal ··;:_: ;is considerably beyqnd the demand in ·
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·.:. ,ast year involviog .. .40 buildings in
earners. ~rom ~tt.anta · a!Jd nme sub~ ·::,._ Washington: Some bµildings are break• r
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, . At.lanta which have combined rentable
~r~~n c1 1e:orar1~~p;~t s·:ot~~f143.215.248.55!;: · ·.: :-fog~ long estabtished $5.75~$,6 a sq. ft. . . :'
·· · . areas totalling 5,l-34,000, sq. ft., re- · . isi mg
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.. :·:/:.price. Most·of.thesf·are int.he outlying
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\• .: ·.v~aled 1~7,000. sq. ft. was at that date
aa d apartments ID th e five~o~nty ~r~a··1'A; areas, but even buildings with choice
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, ' . vacant. The occupancy ratio was thereThey fou nd th at of th e _r es,denc~:· ,:;, :locations are feelfn'g 'the· pfessure a·nd
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\I' _. to,e, 96.3.%. These ,40 buildings were 208 , 185-some 5 ,241 were vacant, for· ,:r are dropping rents ·10 . $5.25-$5.75 a · ;:':··:
.;;;- , .' · IQCated downtown and in semi-central
a . perc~ntage rate of ·2.S Apartrnent::::;'sq. ft.
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(Pershing ~oirit) ·and . s~~urban areas . vacanc,~s. were 4,389 of. a total of 6 9.,· ·.;:. · There are approximately : 15 office ".·' ,' ;;: ...- ·· _. , :·
5 °h~~' tfhor aAvtal catncy.}tate .? f .6 :5. t~h.0 \ .·>'=buildings now under · 'co·astrt.iction in . ·_.·'.·._.·;:··~.:. ·: .'.·.:.-··:··; ·.· ..'.._.:··.i,·::,·
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(½:nox d~qu1abre).:1·d. ~lso m~luded were · 69W
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ve -me 1ca u1 mgs.
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an. a · -..I Y-·. 11m 11S{ . e,. ·.the northwest ·section of' ·t he city, the
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.'.~"':. .'·.· : ":Rental rates for ·ne~ downtown space
overall vacancy rate was 3.~_%. ·:fhaf) /:pl'ivate industry area·, with nine build- .
\ t ...-·.· ayerage0 $4.,50 per ·sq. ft,,. and for new
Included a 6d.J%2 mvacaney :.rate \ ff!lr .·,.i )ngs .planned.;
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,·';/.~'.. : :. suburban space aboµt · $3.50 per sq. ft.
ap~rtments an a ,o · v~cancy r~te. or.. :\"-, .' New office~ .are· renting" -a(, $5-.6 a .
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·~J;, -: .Older buildings downtown would aver- · residences. John F. ·Tb_,gpen, .. d!rec!or;-_:-;'_· foot; older ·space . at $3-4.- - Suburban
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\ j./ ·:-_ a~e about 25% '· Jess.:-There would ~ · of the Atlanta FHJ\ .~ffic~_; said .· the ..\ ··,buildings rent for ·about "15% tower ., _. .· ~·~~.· : '.,,,
i').: · · liitle difference in semi-central or subsurvey. confirms. earher ·e~.1denc~ :.,t~at,-~,;;:,than downtown ,space and _'..-fhere a.re . ·.··.:.· .:~:-~.:'.·,,.,·:.~_.:_- ~::, ·:_·.: :.,/ .. ,
t~ere '!S no requirem~ot . for ·!1d_d1~o~aJ ·..:. .· more vacancies in siJburb.ia, .·.
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/ .'/. · \ .. .Urban buildlngs, .$incc · are relatively
'.:) ~.:,:.-· ._' ·,new.Rental rates are aboµt the same as · high-r,se, apartments ID . Atlanta.
Concessions include ~he -,1 following:
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1.-•.:e;;,· •. . last year. ·
. ·Shoppmg Centers.: .· There . are th.re~:·~::. :.remodeling cost ·is ·b orne · to keep ten- · · · ·· ·: · · ,,
There is . propo~ed, ·.o r under con- · ·major ~enters, totaling.. roughly 1,490{)'~'.:'·ant~;- new i~terior~:·given t9. :,iew on,es; . .. ,: '.<·:;f,.:: ·. ~: ·
ID
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Larr in Atlanta's ·.·.·
.· :\.::· .R~.alty Market-Indicated
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.t2 ··. .· sq.
struction,
three.approxi~
million
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ft. of approximat'ely
new qffice .. space,
.:-' f · · · m.ately
.two-thirds of'whic.h is down- .
·: ·"/· · town. Since most of this 'js institution\) /:. _·. aJly-owned; :we feel it .will be .absorbed
·)f.' ..• . , .. j-:~adily asb it is compf~ted •over
the next
t.:•"
"J,: ~.:;-' . ,10 to t ree yea~. . '. " · : .:. . .. . .
-~1··
·. ..'. · . 'fhe,on)y COn!=eSSIODS .m ade ID Office
l,°i'{(j , ~ilding leasing .' iavolve .. assuming the .,
·:/'..)~ · :· · remaining portioti of· an existing lease
\~~.: : .;:, i~ order to· get desirable .t enant ~ a
·, ;,-;: . . l~ge ~rea. ,Land..anc;l:,C(!natnlctJon costa
) : .. hJlVC mcreased ;appr~~t~ly ~IK, IO ..
.'.·:~{: ·.: {0% aipce, last.}~.-(.' -:.- 1~·:.. '. " . '
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t !'. .~~ iH•/i;!?{liiti( ':'; .. .·
·, ·•·
.• ·• ·" 1\T ll mTt'\1\T l\
000 sqare
. .·ft.,Columbia
now .under
t ·.;::· of
paymg
movmg
expen&es~
buy mg · ....::.:_.,'_.·.':;·,: '~,.·;,·."·.-::.:_· ·.·,··.·.·.··.·.: ....'.:.··: ·,··..'....
They
· Ma~rconstrU<<t1Qn,
·(~e~ts:·: ~fld>,~
.leases
to · get.·
,ten~nis·some
- carpeting,
Macy), . North DeKalb (Rich s) . and _;. · drapes offered; even. six ' months free
Greenbriar (Rich's and Pe~ney). 1hete \\. occupancy in some cases: . ·.-·:
v' ._.
a~e very few vacancies in existing c~?· ·'?. :.· Uncle Sam is. ocit. taking · m uch new
ter_s, ands.mall cen_ ters.- .are ·. now ·~.' mg ,... ··,spac.e this year; he's eitpectc. d . back in
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Th
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m t on Y m ou ymg area~, . e tren ·:'. .. the market big in -.19~5. , C6nstructioo
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for sevc;ra) years h~~:: beell'. ·tO 1ai:ge·,., starts 00 offices -have tailed off; many '. · ·(:~· '.:
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centers ·(400,000. sq•.fL}>r more) .~uilt .) are planned: More: of a ·swirig to down.:·.' ·
around one or two fi;la~or. d~pa~ep.t ·;. :town apar~ent complexes. ... · :
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stores. ··
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., ·i.'!,, .. ·. Construction costs· . are· -~ up · only
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• lndu.strial . Propertl~:,~ -·~o.,t .ot;},u( .\ '.° slightly; mortgage ,rmarket:/ $0mcwhat .
mdustrial.. arowtb for ·~ , past'_ (O ;Y,ea1': J:,better ::for the .mc)rtgaget, :3but office
~ .taken place 1n. ·e i.n~.{lnd.~
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