Construction in multi family housing, apartments, medical communities, and the hospitality industry in Southeaster U.S. Georgia and the Carolinas are forecasted to expand as employment and the economy continue to grow. Last week we went over the development and construction growth in Florida, in our ongoing blog we look at Georgia and the Carolinas.
Georgia
In Georgia the growth in population is expected to drive the demand for new construction. Atlanta alone is increasing their workforce by 68,000 employees, due to larger companies expanding and adding new jobs.
“Through the end of 2016, the Atlanta Metro vacancy rate has fallen 400 basis points from the ten-year high and will drop further this year to 6.4 percent. Larger shopping centers with necessity retailers, including grocery stores, are popping up across the market to serve the growing number of households,” John Chang, first vice president, research services, at Marcus & Millichap Real Estate Investment Services.
“Tight vacancy rates remain supportive of rent growth across the majority of the region, reinforcing asset values.”
Atlanta’s higher education institutions, such as Emory University and Georgia Tech are both expanding their campuses, as wells as the growing film industry, which is estimated to have a $7 billion dollar economic impact. Creating a need for more apartments and medical communities.
The Carolinas
Job growth in North and South Carolina is very solid and multi-family housing is expected to increase. Mixed use communities and walkable urban environments are in high demand.
“Investors are drawn by more affordable entry costs and the potential for higher returns than are available in their home markets,” says Mark Vitner, managing director and senior economist at Wells Fargo Securities in Charlotte. “The increasing supply of new multifamily properties near downtown cores is keeping institutional investors active. First-year returns in this tier of the market typically begin in the 5 percent range in Charlotte, Raleigh, Greensboro/Winston-Salem [in North Carolina], Greenville/Spartanburg, Columbia, and Charleston [in South Carolina].”
SWET Construction Group is a full service company who understands the big picture and well as the latest trends. We have the experience and knowledge to handle large and small construction projects. We take pride in our professionalism and innovative approach, we are known for our quality projects and staying on budget.