Box 14, Folder 3, Document 8

Dublin Core

Title

Box 14, Folder 3, Document 8

Text Item Type Metadata

Text

-; guarantee mortgages to $30,000 per
, unit, up from, $25,000. Under condo-
* mjnium, individual: mortgages are writ-

blanket mortgage on the ete as
- with cooperatives. °

-Demand. continucs . brisk for: the
- FHA-insured condominiums, but the
-» cofidominiums. Despite the high ‘num-
‘condominiums continue to be built.
‘The paradox of the new condo-

- partly empty. apartment house, has its

customers are not:found promptly to



of the units can be rented convention-
ally: A condominium ‘apartment that

better in monthly rental.

cM . Moreover, some ..developers are.”
ae building directly for. apartment rental.
————

VNo Lag in Atlanta's

Realty Market Indicated

* Ailanta is indicating no lag in continu-
ing progressive operations. .Thomas V.

-’ Estate Board and vice: president of the
‘Adams-Cates Company, ‘reviews the
property categories here in this manner:
Office buildings: A survey made late
last year involving 40 buildings in
‘Atlanta which have combined rentable
‘, areas totalling 5,134,000. sq. ft., re-
“vealed 187,000 sq. ft. was: at that date
* . vacant. The occupancy ratio was there-
' < fore, 96.3%, These 40 buildings were
‘located downtown and in semi-central
(Pershing Point) and, suburban areas
(Lenox Square). Also included were
~ five medical buildings.
“Rental rates for’ new downtown space
teh average $4.50 per:sq. ft., and for new
... suburban space about’ $3.50 per sq. ft.
4 Older buildings downtown would aver-
.age about 25% Jess.-There would be
-. little difference in semi-central or sub-
“;, Urban buildings, since-all are relatively
ew. Rental rates are about the same as
last year,
- There is proposed, or under con-
‘ -struction, approximately three million
"sq. ft. of new office’ space, _approxi-



- town. Since most of this ‘is institution-
*. ally-owned, -we feel it will. be absorbed
-. Readily as it is completed over the next
Ff two to three years. «

~ +. The,only concessions made in office



:» .. ip order to get a desirable tenant in a
re Jarge area. Land and construction costs

* Rave increased -approximsiely 5% to
* 10% since. bis ae



- tensfor cach apartment, instead. of a
-Mmarket Sscems surfcited ‘with luxury -

.minium apartment -building that rises
. alongside another recently built, and —
_ explanation: Promoters have Jarge sums’
of money invested in the property, and °
“as long as they. can obtain bank financ- .
‘.ing, prefer to push ahead in the face:

. Of a weak market rather than see ‘their. .,
- funds idling in unused land. Then, if ..

la sells for $40,000: can bring $300 or

Atlanta, Ga, — As‘a realty market,’

Cauble, president of the Atlanta Real -

mately two-thirds of which is down-.

: building leasing involve. assuming the.
‘remaining portion of an existing lease

{National Real Estate. Investor, Nov. 1964 issue)

Atlanta is unique in that: both thé “:.

- downtown and suburban areas have...

“continued to grow about equally.

‘ _vacancy rate at this time. is about 7%.
‘High-rise apartments have not ‘done so_

* well. The vacancy rate there would run, a
12% to 15%. The difficulty appar-..

.. ber of vacancies, however, new luxury t

: $150 million by the end of 1964. The--
permits represented a cross section of...

better than the downtown market, pri-.:"".
Marily because most of the garden-type:s s ee

buy the condominium apartments, some. .; units are Suburban,

-during, 1962 totaled. $116,648,338.
~ City Building Inspector -William - ROY

‘695 units, for a vacancy rate of 6.5%.

‘major centers, totaling roughly 1, ,400,-

aah rca

Apartment Houses: Atlanta hae-*
shown a remarkable ability to absorb’.
garden-type apartment units, where the *:

ently lies in the fact that a garden-type
unit can provide the same accommo-.

% dations at about 25% less rent. There-.;

has been from time to time evidence ‘of
rent concessions, but the practice is, mot =
wide-spread and the concessions are not «:
substantial. ;

The rate of construction -is about’ the:
same as last year, and land and con-". '

- struction. costs have increased 5% to 4“

10%. The suburban market ‘has done .’

The first nine months. of 1963 Eh

seen the attainment of a new all-time «
' high record for city building permits...:;

The previous high record was for, the
entire year of 1962. Through Septem-
Ixs 30, the city issued. building permits
valued at- $127,903,326. Permits issued

Wofford said he expects the city to hit,

all categories of building, Mr. Wofford

‘said, and indicated an increase over: ;:-
_ Previous years in all categories.

Overall, the Federal Housing Admin= «i:

istration here estimates. the eS
rate for apartments and: residences -in

_the metropolitan area at 3.5%. Postal »

carriers from Atlanta: and nine ube “e
urban cities participated in the survey, -
visiting a total of 277,880 residences ..
and apartments in the five-county area.(.) :
They found that of the residences— :
208,185—some 5,241 were vacant, for. -
a percentage rate of 2.5 Apartment?"
vacancies were 4,389 of a total of 69,~

Within the Atlanta’ city. limits: the
overall vacancy rate was 3.3%. ‘That.’:
included a 6.1% vacancy ‘rate: for’ %
apartments and a 2%. vacancy fate: for. :
residences. John F. '‘Thigpen,. director:
of the Atlanta FHA office, said : the
survey confirms earlier evidence that.’
there is no requirement for additional *.

high-rise apartments in Atlanta. © - tai

Shopping Centers: There are three.

000 sq. ft., now under construction
They. are Columbia Mall (Sears. and
Macy),. North DeKalb (Rich’s)’ and“
Greenbriar (Rich’s and Penney). There
are very few vacancies in existing cén--
ters, and small centers are now being :
built only in outlying areas. The trend *
for several years has. been to large -
centers (400,000, sq. ft. or more) built.”
around one or two major. Ceparcnent : *
stores, « ‘

Industrial Properties: “Most of; our.
Saban nine bane ba oun a
in. Binaries jtndaastied
































1












«parks, many of: which have ‘been pro-
_moted by railroads. Most of the growth
‘sat this time is taking. place in -such

aa ~ parks located along the city’s cxpress-
:eway system, A new devclopment has

been the trend from combined office-




‘and-warchouse space to 100% office -

space. Such a development is already

underway on the Northeast Expressway.

‘It is called Executive Park and involves
* about 115 acres.

‘: The vacancy rate in modern ce “story |
“industrial property is negligible. The
;, vacancy it old loft-type buildings would ..
“run about 15%.
‘demolished in connection with: urban

Many have been’

redevelopment, expressway, condemna-

“th tion and to create parking. ‘The going

‘rate .for modern ‘l-story, Warehouses -

would run 60-75 cents per $q. ft., but

ranging upwards to $1 per’ sq. ft. for
“expressway locations having.'s a. good
heel value, i ete F





=





- Vacancies Rise in
Apartments, Offices





cancies rose from 1.59% a year ago to

1.88% this summer, This is:on build-. -
“: ings that were once nearly completely «..”
.- occupied.’ It does not include the new
-: buildings. A truer rate is more near

%.

ds considerably beyond the demand in
. Washington. Some buildings are break-
< ing along established $5.75-$6 a sq. ft.
‘yprice. Most of-these-are in the outlying

areas, but even buildings with choice oS

*locations are feeling the pressure and

* are dropping’ rents to. $5.25-$5.75 a
, sq. ft.





There ‘are approximately |15 office
buildings now under-‘construction in
the northwest section of the city, the

** private industry area, with hine build- "*-

dongs planned,
New offices .are renting ‘at, $5-6 a-

«foot; older space at $3-4. Suburban

-,buildings rent for about 15% lower

‘than downtown space and there are

“more vacancies in suburbia, _
Concessions include the’ following:

‘Temodeling cost is, borne to keep ten.
ants; new interiors given to. new ones;
“paying moving expenses; some buying ;
- of leases to' get: tenants; | carpeting,



“drapes offered; even six “months free

_ occupancy in some cases,

Uncle Sam is ‘not. taking much new

_ "space this year; he’s expected. back in

-the market big in 1965.-Construction
starts on offices have tailed off; many
are planned. More of a swing to down-

town apartment complexes,

ction costs are - up only

slightly; mortgage ; market’; poonew tat

“better oe Ge tt



2

” Washington, pic Apitinent va- |

_ The 96.8% office building occupancy ae
‘crate is the lowest since 1960. Overall | —
office space vacancy is probably more |
like 8% now, including the many new °-
'. buildings just on -the market.. :
‘ The supply. of ‘new office buildings —



+)
4
i
pe
1
ne

she eee Ens









Comments

Document Viewer