Southeast Feature Archive

Architects Draw the Short Straw with Heavier Workloads, Fluctuating Availability of Construction Materials

by John Nelson March 22, 2022

If you know any architects, you may want to check in with them because chances are they’re exhausted from having more work now than ever before, with no end in sight. That’s because despite all the headwinds facing real estate design — namely supply chain disruptions and staffing woes — developers are in growth mode, and architects are needed as they are uniquely equipped to game plan for what users want and need. The volume of work has not only accelerated for architects but they’re also tasked with mapping out new requirements while maximizing flexibility, which is time-consuming and labor-intensive. The workload is getting so substantial that demand is exceeding the supply of architects in some instances. “The backlog is so significant that we are having to contemplate turning away work, which drives us crazy,” says Steve Goggans, principal and architect at SGA | NW, a GF design company. “We are trying to be most responsive to repeat clients, but we may find ourselves unable to produce and perform if we continue to take on work, so we are having to be a little more judicious than we ever have before.” Goggans says that SGA | NW’s logjam is also …

March 22, 2022

District of Columbia Features Southeast Southeast Feature Archive

The Tax Appeal Life Cycle in D.C. Goes Through Three Levels of Review

by John Nelson February 17, 2022

In the District of Columbia, a prudent taxpayer must observe important steps and deadlines to appeal a real property tax assessment. Strict code provisions, government policies and procedures govern the appeal process, so understanding the typical life cycle of an appeal provides a head start in making sure a property is fairly assessed. Here is a look at what to expect as a case advances: Assessment and Notification Assessors reassess all real property in the District each year using a Jan. 1 valuation date that precedes the start of that tax year. For example, Tax Year 2023 runs from Oct. 1, 2022 through Sept. 30, 2023. Thus, corresponding assessed values are as of Jan. 1, 2022. The District typically will mail assessment values and update the MyTaxDC.gov website on or around March 1 each year, sending its estimate of market value to the owners of more than 205,500 parcels. This will be the taxpayer’s first glimpse of the valuation and potential tax liability for the following tax year. These assessed values are released without supporting documentation, however. To determine how an assessor derived the value, the taxpayer or a duly authorized agent must contact the Office of Tax and Revenue …

February 17, 2022

Features Georgia Multifamily Southeast Southeast Feature Archive

No Barriers Blocking Atlanta Apartment Market Growth, Say InterFace Panelists

by Jeff Shaw December 17, 2021

ATLANTA — Multifamily investors increasingly view Atlanta as a tier-one market. Speakers on a panel at France Media’s InterFace Multifamily Southeast conference, held in Atlanta on Dec. 2, point to several reasons why the region is the right place, right now, to build, buy and sell all manner of apartment assets. “In Atlanta, you’ve got an incredible diversity and strength of employers,” said Chad DeFoor, senior director of multifamily sales for Franklin Street. Total nonfarm payroll employment in metro Atlanta rose by 134,800 from October 2020 to October 2021, a 5 percent increase, according to the U.S. Bureau of Labor Statistics. DeFoor was joined by Bianca Tabourn, managing director with Stockbridge; Steve Baile, chief development and operating officer with Selig Enterprises; Patrick Chesser, managing director of Mill Creek Residential Trust; Seth Greenberg, CEO of ECI Group; and panel moderator Jason Nettles, managing director with Northmarq. The speakers in the session titled, “Atlanta Market Update: An In-Depth Look at Leasing, Investment and Development,” all remarked that job growth and high-profile employers moving into the area are, in part, helping to curry favor among investors. In the public and private realms, interest is growing in the apartment market in Atlanta and in …

December 17, 2021

Conference Coverage Features Georgia Multifamily Southeast Southeast Feature Archive

Apartment Leasing, Management and Operations Continue to Adapt to Market Needs, Says InterFace Panel

by Julia Sanders December 14, 2021

ATLANTA — For the past few months, the apartment sector has been in an upswing from an owner and operator perspective. Rents are rising and occupancy rates are high. However, some fear that these positives in the real estate market are going to be short-lived and eventually come to an end. Kevin Owens, division president of RPM Living, said that when the hottest geographic markets start to slow down, then other markets are going to follow suit. “Boise, Idaho is the hottest market from a rent growth standpoint in the country for the last few months, and it took a hit in November. So, if the hottest markets are going to start slowing down, then other markets are going to start slowing down. It’s just a natural progression,” said Owens. Owens’ comment came from a panel titled: “A Report from the Frontlines: What is the Outlook for Leasing, Management & Operations in 2022?” The discussion was one of the many that occurred at France Media’s InterFace Multifamily Southeast conference at the Westin Buckhead hotel in Atlanta on Dec. 2. The panel experts included moderator Craig Thompson, partner at Carr, Riggs & Ingram LLC; Kevin Owens, division president of RPM Living; …

December 14, 2021

Conference Coverage Features Georgia Multifamily Southeast Southeast Feature Archive

Capital Chases Southeast Multifamily Sector, Says InterFace Panel

by Kristin Harlow December 9, 2021

ATLANTA — This year marked a golden age in terms of operating or selling multifamily properties, according to Alan Dean, region president of Terwilliger Pappas, a development firm with four offices in the Southeast. But given the rising costs associated with land acquisition, materials and labor, the challenge has been putting together new deals. “Anyone that got deals done shortly after COVID hit, those deals are going to be very valuable because they’re going to be opening up with less competition on lease-up,” said Dean. Dean’s comments came during a panel entitled “What’s the Outlook for Development in 2022?” at the 12th annual InterFace Multifamily Southeast conference. The event, which took place Thursday, Dec. 2 at the Westin Buckhead hotel in Atlanta, drew more than 300 industry professionals. Joining Dean on the panel were Jay Curran, president of Charlotte, N.C.-based Crescent Communities; Woody Rupp, chief investment officer of Atlanta-based Brand Properties; Harvey Wadsworth, managing director of Atlanta-based Portman Residential; and Justin Weintraub, principal and chief development officer of Birmingham, Ala.-based Daniel Corp. Robert Stickel, executive vice chair with Cushman & Wakefield in Atlanta, moderated the panel. High prices for dirt, long entitlement processes and increased competition in the marketplace have …

December 9, 2021

Conference Coverage Features Georgia Multifamily Southeast Southeast Feature Archive

Rapid Rent Growth Spurs Wave of Multifamily Investment Sales, Says InterFace Panel

by John Nelson December 3, 2021

ATLANTA — The third quarter of 2021 was the most prolific quarter on record for U.S. multifamily investment sales, according to Real Capital Analytics (RCA). Apartment sales volume totaled $78.7 billion for the quarter, a 192 percent increase from third-quarter 2020 and a 59 percent jump from third-quarter 2019. RCA data shows that the dollar amount of assets traded this past quarter exceeded the average annual sales from the period 2008 through 2011. James Mehalso, managing director of transactions for PGIM Real Estate, expects his firm to keep its foot on the gas for next year on both the acquisitions and sales side for multifamily assets. “The rental market is hot,” said Mehalso. “We don’t see it really changing much in 2022, at least in the first six months.” Mehalso’s comments came Thursday, Dec. 2, during a panel discussion as part of the 12th annual InterFace Multifamily Southeast conference hosted by France Media and the InterFace Conference Group at the Westin Buckhead in Atlanta. Moderated by Paul Berry, vice chairman of CBRE, the panel was titled, “After a Wild 2021, What’s the Investment Market Outlook for 2022?” The event, which attracted more than 300 industry professionals, marked the return of …

December 3, 2021

Company News Features Heartland Feature Archive Hospitality Industrial Mixed-Use Multifamily Northeast Feature Archive Office Retail Southeast Feature Archive Texas & Oklahoma Feature Archive Western Feature Archive

Forecast Survey: What’s Your Take on Commercial Real Estate in 2022?

by John Nelson November 18, 2021

The editors of REBusinessOnline.com are conducting a brief online survey to gauge market conditions in 2022, and we welcome your participation. The survey should only take a few minutes to complete. Questions range from property sectors that you are most bullish on heading into 2022 to trends in deal volume to your outlook for interest rates. The results of our 11th annual survey will be collated and published in the January issues of our regional magazines. Conducting these surveys is part of our mission at France Media to provide readers with indispensable information, and we couldn’t do it without your help. To participate in our broker/agent survey, click here. To participate in our developer/owner/manager survey, click here. To participate in our lender/financial intermediary survey, click here. (Note: Please remember to click on “done” to properly submit the survey.)

November 18, 2021

Lee & Associates Breaks Down Third-Quarter Economic Outlook by Sector

by Sarah Daniels November 1, 2021

The calculus for which asset classes are likeliest to demonstrate strong growth continues to shift as the pandemic appears to be receding. Patterns in labor shortages, supply chain issues and material costs have managed to solidify through the third quarter of 2021. Lee & Associates’ newly released Q3 2021 North America Market Report dissects third-quarter 2021 industrial, office, retail and multifamily findings, with a focus on where demand is moving and the challenges facing each asset class. Lee & Associates has made the full market report available at this link (with further breakdowns of factors like vacancy rates, market rents, inventory square footage and cap rates by city). Below is a bird’s-eye overview of four commercial real estate asset classes as general categories, broken down to frame each through the trends and complications they faced up to the fourth quarter, according to Lee & Associates’ research. Industrial: Q3 Posts More Record Demand Pandemic-fueled consumer spending drove up third-quarter demand for warehouse and distribution facilities that eclipsed previous records. And despite a nationwide surge in new construction, some metros can barely accommodate the pace of tenant expansion. Additionally, year-over-year rent growth is at a record 6.7 percent for the industrial property sector …

November 1, 2021

Features Leasing Activity Market Reports Southeast Feature Archive

NAIOP: Commercial Real Estate Industry Sentiment Up to 56 in September, Near Pre-Pandemic Level

by Julia Sanders October 14, 2021

WASHINGTON, D.C. — Commercial real estate professionals indicate conditions in the industry have returned to approximately where they were before the onset of the COVID-19 pandemic, according to The National Association of Industrial and Office Parks (NAIOP) Fall 2021 Commercial Real Estate Sentiment Index. The index for September 2021 came in at 56 out of 100, up slightly from 54 in April 2021 and identical to March 2019, a year before the pandemic began. At the pandemic’s worst point — March through September 2020 — the index sank to 45. The NAIOP Sentiment Index was created to predict general conditions in the commercial real estate industry over the following 12 months by asking industry professionals to predict conditions for their own projects and markets. The Fall 2021 report surveyed a total of 357 respondents from 263 distinct companies from Sept. 7 to 14. The index asks respondents questions about jobs, space markets, construction costs, capital markets and other conditions for real estate development. A sentiment index below 50 means many believe there will be unfavorable commercial real estate conditions over the next 12 months; 50 means little to no change in commercial real estate conditions are expected; and greater than …

October 14, 2021

Features Leasing Activity Office Southeast Southeast Feature Archive

Rise of Remote Workforce Creates Paradigm Shift in Office Sector

by John Nelson October 12, 2021

In September, President Joe Biden issued a federal edict for large employers (100 employees or more) to require vaccines against COVID-19, or requiring weekly COVID-19 testing. The latest reporting out of Washington, D.C., is that the mandate carried out by the Occupational Safety and Health Administration (OSHA) will be enforced with hefty fines for noncompliance. Several blue-chip companies such as Anthem, Delta Air Lines, Google, Microsoft, Salesforce, Twitter, Tyson Foods, ViacomCBS, The Walt Disney Co. and Walmart have already announced plans to get their workforce fully or close to fully vaccinated. Clinton McKellar, executive director of Cushman & Wakefield’s Atlanta office, says that in addition to protecting their employees’ health, a large-scale vaccine mandate could potentially facilitate a return to pre-pandemic norms for corporate America, thus more employees in the office. “Giving vaccinated employees the opportunity to safely return to the office allows for impromptu meetings and collaboration that is difficult to replicate in a remote environment,” says McKellar. “In Atlanta, what is proven out is that people, if given the choice, would rather work from home than come to the office and wear a mask.” Clients are telling brokers that their workers who are regularly in their office are …

October 12, 2021

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