'Overbuilding Hangover' in Store for Atlanta
"Next year 'promises tough times [in Atlanta] as an overbuilding hangover and slipping demand roil investors,' states the [ULI's annual Emerging Trends in Real Estate Report], now in its 30th year. 'It's no time to buy in any of the property sectors. Office developers play a game of chicken in Buckhead, where a bloodbath is coming.'
Buckhead absorbs less than 500,000 square feet of office space annually, but more than 2 million square feet is under construction, the report points out.
'The goofy activity defies description.'
The principal author of the report, Jonathan Miller, who lives in New York, addressed ULI Atlanta members Tuesday morning at the Cobb Energy Performing Arts Center.
As for the perception that Atlanta is overbuilt, 'given what's going on in Buckhead right now, I think it sticks,' said Miller, who has spent time walking and driving around the city."