The combination of job growth and the surge in GDP during the long-running economic recovery has been a boon to the commercial real estate sector.
In Atlanta and across the country, there has been continued strong demand and absorption for virtually all product types, and capital has been readily available for investment.
But will the good times continue? What next?
That was the focus of Ackerman & Co.’s recently held 12th Annual Investor Conference, attended by some 150 guests, including owners, operators, investors and brokers.
Host Kris Miller and keynote speaker David Haddow weighed in with their perspective on current economic trends and their outlook for the commercial real estate sector. Joining them with in-depth discussions of investment opportunities for specific product types were F. Keene Miller (Brokerage), Leo Wiener (Retail), Brett Buckner (Industrial) and Evan Ziegler (Investments).
“After the last two years of success, growth and prosperity, the numbers would suggest that the future of commercial real estate has never been brighter. Yet each of us feels less certain than we did two years ago. Why? Is that how we should feel?” asked Kris Miller.
There are causes for concern, said David Haddow. Current economic soft spots, he said, include the rising national debt (now at $21.6 trillion, an increase of $10 trillion since 2008), government gridlock, fast-rising home prices and diminishing consumer confidence. Combined with those issues, the length of the current cycle (nearly 10 years) makes an economic correction more likely in the next 24 months, Kris added.
How should investors respond? Here are the three biggest takeaways provided by Kris and his Ackerman & Co. colleagues:
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Stay on the field.
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Focus on the specific strengths and weaknesses of each deal – rather than macro conditions across property types or markets.
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Adopt a bias toward selling.
The annual conference also provided guests an opportunity to learn about Ackerman & Co.’s 2018 business highlights as well as its goals for the coming year.
Last year’s highlights included Ackerman’s $70-million sale of Braselton Logistics Center to Uline Inc.; the $9.75-million acquisition of the four-building Warren Drive industrial portfolio in Atlanta; the completion of the 181-key Crowne Plaza Hotel in North Augusta; and the $15-million disposition of seven industrial buildings at Stone Mountain Industrial Park, to name a few.
Kris and the team thank everyone for attending despite the rare winter-weather advisory in Atlanta!