Midtown: Atlanta’s Busiest Submarket

Midtown Atlanta Skyline Panorama 3 For months we have championed the developments breaking ground in Midtown as some of the largest and most exciting in Atlanta’s history. The two most exciting aspects of Midtown development are the apartment and condo projects entering the pipeline. Apartments Apartment project after apartment project has broken ground since Atlanta pulled itself out of the recession several quarters ago. There are currently more than 800 apartment units underway in the submarket and another 5,700 to the pipeline before the end of the year. Some believe that we are already seeing the beginning of the end of Midtown’s apartment boom, however. Traffic concerns are mounting giving the proposed number of units and their locations, and Landlords are becoming concerned that with all of the competition in the market they might be unable to achieve the $2 PSF rents they were chasing in the first place. Several CRE professionals have said that these units, which are generally being marketed towards the younger Millennial generation, are too expensive for the majority of young adults coming out of college straddled with loan and other school-related debt. Developers have begun constructing smaller units to combat this, but most acknowledge that these “microunits” will not be a pervasive trend in the future. Condos The Atlanta condo market has been much slower to recover than the apartment market, which makes sense given Atlanta’s history of oversupply. Several apartment projects have entered the pipeline but no investor has been willing to take a gamble on condos – until now. At the beginning of the month, The Loudermilk Cos revealed its plan to break ground on Midtown’s first condo tower since the recession, a 20 unit building where Peachtree and 7th Streets cross. A couple other development firms have followed Loudermilk’s example and announced condo projects in other parts of Midtown; One Museum Place is scheduled to deliver in 2016 and Crescent Heights is going to be converted back from apartments to more than 300 condo units.

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