Real Estate Investing in Atlanta with Origin Capital: Smart Decisions In A New Economy
As any real estate investor knows, Atlanta is not a city that sits still or stagnates. Founded as a railroad hub, it was burned down during the Civil War and subsequently rebuilt, after which it exploded in growth, was burned down again in the Great Atlanta Fire, changed itself, and changed America. Over the years, this city has been called Terminus, Thrasherville, Marthasburg, and even Atlantica-Pacifica, but through it all, it’s been a living, breathing, and vibrant city, and one which real estate investors have always known to be a good bet.
That’s still the case today. Atlanta continues to draw in multinationals, with their hundreds of thousands of employees needing office space and housing. At Origin Capital, we know Atlanta inside and out. We know what makes this distinctly American city grow and we know where it’s going. We’re your real estate partners in Atlanta and together we can make the Peach State bloom.
The Changing Landscape of Atlanta Real Estate
If you’re looking to invest in Atlanta, there are a few key factors to keep in mind. At Origin, we look at the big picture of the city’s overall economic health, and we also consider each neighborhood on a more granular level in order to gain a better understanding of the area. Here’s what you need to know about Atlanta:
Atlanta is a regional and international transportation hub: As home to one of the world’s most important airports, Atlanta is the destination of choice for multi-national businesses who want to make it easy for employees to fly in and out of. It is also a regional shipping center, giving rise to the industries that coalesce around that.
Atlanta has a growing job market, particularly in tech: The Atlanta job market has pulled itself out of recession-induced economic doldrums, replacing 153% of the jobs lost in the Great Recession. Unemployment has been cut in half since 2013 and the city is expected to gain between 80,000 and 90,000 jobs both this year and next. The job market is especially important in the tech sector. Atlanta has seen 21% growth in its tech sector and is now considered one of the top 10 cities in this field. The city itself is heavily promoting the sector, which is fueling Atlanta’s overall growth. This growth will lead to an increase in demand for office space, warehousing, R&D warehouses, and many other types of real estate development.
Rental prices in Atlanta are still relatively inexpensive: Compared to other tech havens like San Francisco, Seattle, and New York, it is less costly to live and do business in Atlanta. This will continue to draw both top companies and top talent. It’s the reason why established national and multinational companies call it home and why new industries flock here.
As industries come to Atlanta, prices will go up: It’s a basic economic law, which is why it’s important for investors to get in on the ground level. There has already been an uptick in multi-family rents, the lifestyle most favored by young tech sector employees, with a year-over-year growth of 7%. This number is poised for a similar trajectory in the future as supply and demand fundamentals remain in check. Overall office rents have had a less steep incline at 3%; however, more robust rent growth has been realized in the infill micro-markets that Origin targets and the trend lines are all pointing upwards due to strong market fundamentals.
All of this paints a picture of Atlanta as a growing city with a new and dynamic industry that needs the commercial and living space in which Origin Capital Partners specializes. Multi-family and commercial real estate asset values are rising sharply in Atlanta. Opportunities within these asset classes are ripe for capitalization and for development to appeal to the booming, tech-based middle and upper classes. These economic factors make Atlanta an ideal city for investment.
Top Atlanta Neighborhoods for Real Estate Investments
At Origin, we only look at neighborhoods that are ready to grow for us and our partners. In Atlanta, this includes:
Inman Park / Belt Line / Old Fourth Ward: Enjoying incredible proximity to the cultural and employment amenities of nearby Midtown, in recent years, the “O4W” has experienced a complete rebirth as a bastion for the intellectually and culturally stimulated urban dweller. It’s a place where abandoned warehouses are being converted to lofts and small businesses are thriving, while the authentic flavor of this historic area remains preserved. The catalyst for this growth has been the redevelopment of Ponce City Market. Formerly a one-million-square-foot Sears, Roebuck & Company warehouse, this mixed-use development is poised to become the city’s next hot spot for eating, shopping, working, and living. Modeled after Chelsea Market in New York City, Ponce City Market has already lined up top-shelf retail and restaurants to fill the massive space. Further driving growth of this location is the establishment of The BeltLine. The idea was conceived by a Georgia Tech graduate student’s proposal to transform outmoded railroad tracks line into a walking and cycling path through Atlanta and was modeled after New York’s High Line. The most commonly used section is the Eastside Trail between Piedmont Park and Irwin Street, which goes past Ponce City Market. This area is home to frequent art installations, as well as restaurants with open-air seating.
Midtown: Known for its cultural attractions – museums, symphonies, theaters – Midtown is also the second-largest business district and has a thriving residential sector. This attracts a significant influx of Millennials and empty-nesters alike.
Buckhead: This is the financial heart of Atlanta, located on the city’s north side, boasting the highest-end shopping in the Southeast, restaurants, and upscale condos. Here you’ll find a mix of expensive residential and commercial real estate, both established and up-and-coming.
Cumberland: Located on the northwest side of Atlanta proper, this is a thriving business district with a growing population. The arrival of the new Braves baseball stadium can only increase the neighborhood’s prestige and commercial/residential growth.
Central Perimeter: Ideally situated in the heart of Metro Atlanta, Central Perimeter boasts the largest collection of Fortune 1000 companies in all of Atlanta. Superior transportation infrastructure, significant retail amenities provided at the Perimeter Mall, and proximity to executive housing have helped this market to lead the way in demand for office and multi-family product.
The Atlanta real estate market is entering a period of transition. With a new tech sector attracting young, educated, and increasingly-affluent Millennials and Generation Xers, as well as all the auxiliary jobs and employment opportunities that come with them, this Southern metropolis is set to compete, and, in some cases, outperform the rest of the country. The market is responding and at Origin Capital Partners, we are perfectly positioned to make the most of it for our investors.
If you are a real estate investor looking to broaden your portfolio and join other investors in major developments in Atlanta or other markets, Origin Capital Partners would be excited to work with you. At Origin Capital Partners, we have a powerful connection with the cities we invest in and we understand what makes them tick. We know which areas are booming and which commercial and residential investments will make the most sense moving forward. Our Funds deliver consistent returns, because we know how to make sense of the real estate market. Contact us today to talk about how your investments can grow with the city.
