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Atlanta and the
Southeast boast one of
the hottest economies
and fastest-growing
areas in the United
States. The region is
home to approximately 60
million people, with a
growth rate 55 percent
higher than the U.S.
average. This robust
growth translates into a
continuous increase in
jobs and business
opportunities of all
kinds, from
manufacturing and
distribution to retail,
high tech and
professional services.
The region has a highly
developed transportation
network, including
ports, highways and
airports, led by
Atlanta’s
Hartsfield-Jackson
International Airport,
the world’s busiest
airport and a prime
gateway to the country.
Some 240,000 people –
including those flying
directly from
Tel Aviv –
pass through the airport
every day, either to
stay in
Atlanta or to
travel to other
destinations in the
country by airplane or
automobile.
Since 1960, Atlanta has
been the largest and
most important city in
the Southeast. It has
become the
eighth-largest
metropolitan area in the
United States and now
has nearly 5 million
residents, with an
average of 2,000 new
residents moving to
Metro Atlanta every
week. Atlanta and
Georgia are recognized
for low taxes and a
pro-business
environment. The area
boasts a 4 percent
unemployment rate, which
is typically considered
full employment. More
than 69,000 new jobs
were created in 2005
alone, including 12,000
in professional and
financial services
industries – jobs that
often require office
space, which has been a
strong investment
market.
As befits a regional
economic hub, Atlanta is
the headquarters city of
16 Fortune 500 companies
and 12 Fortune 1000
companies. The list
includes companies
recognized worldwide,
such as
The Coca-Cola
Company,
Delta Airlines,
United Parcel Service
and
The Home Depot.
Together, these
companies make Atlanta
the third-largest home
to Fortune 500 companies
in the United States,
trailing only New York
and Houston and ranking
ahead of Chicago, Miami
and Los Angeles.
All of this sets the
stage for several key
factors about the
Atlanta market that
Israeli investors will
find highly attractive.
One factor is Atlanta’s
value. Real estate
prices fare well for
investors when compared
to those of other major
U.S. cities, and
development of the
commercial areas is
moving at a rapid pace.
Office rentals are $5
per square foot lower
than major Northern and
Western cities, and
demand still outpaces
supply. The
Downtown and
Midtown areas are the
sites of a recent trend:
commercial, residential
and mixed-use projects
that combine work, live
and play elements to
create vibrant new
communities in town.
While many real estate
investors tend to think
of cities in terms of
downtown areas,
Buckhead,
on Atlanta’s north side,
is home to some of the
nation’s most exclusive
shopping, residential
and office properties.
Retail space on
Peachtree Road in
Buckhead recently sold
for a record price of
nearly $500 per square
foot in an area where
rents of $40 per square
foot are common. Dozens
of major projects
featuring hotel,
condominiums and retail
components are underway
along Peachtree Road, a
main thoroughfare of
Atlanta.
At the upper end of
Buckhead in the area
known as the Buckhead
Loop, office, hotel and
retail construction is
an ongoing process.
Retail rentals at two of
the major shopping malls
in Buckhead (and all of
the Southeast for that
matter) –
Lenox Square
and
Phipps Plaza – can
reach $80 per square
foot. The Buckhead Loop
area is accessible by
MARTA (Atlanta’s
rapid-transit rail
system) stations on the
Northern Line and the
Northern Line’s
Northeast Extension.
While Buckhead receives
significant investment
attention, several other
Atlanta neighborhoods
are noteworthy for their
investment opportunities
and ability to serve as
a model for other
development
opportunities.
Midtown, located between
Downtown and Buckhead,
continues to attract new
office and residential
development. Projects
are either in progress
or in the planning
stages to add to some of
the Atlanta skyline’s
newest office towers. As
office construction
continues, there is a
desire among corporate
executives and their
employees to move closer
to work and improve the
quality of their lives
with communities that
feature a growing
live-work-play
component.
That formula was the
lure for developers with
Atlantic Station,
located just west of
Midtown. Developed on
the site of an old steel
mill, Atlantic Station
features single-family
homes, rental
townhouses, apartments
and condominiums for
living and shopping,
plus restaurants, movie
theaters and bars for
recreation. The
community also features
office space as well.
The success of Atlantic
Station is sparking
plans throughout Metro
Atlanta for similar
development.
Other large projects are
proceeding throughout
the area. Atlanta area
developers have
completed or are
planning several large
“edge city” developments
as well as new in-town
projects.
The second key factor is
direct service between
Atlanta and Tel Aviv on
Delta Airlines. Begun
last spring, the daily
service between the
cities eliminates the
need for connecting
flights in the New York
area, saving a full
business day for many
travelers. This makes it
much easier for Israeli
real estate investors to
visit their properties
and meet with investment
partners in Atlanta, the
Southeast or Tel Aviv.
This proximity helps
build strong
relationships that give
investors more
confidence.
Direct flights to
Atlanta relate to a
third factor – the
extensive network of
interstate highways in
the Southeast. Once you
land in Atlanta, you can
drive to:
The major ports of
Savannah and
Charleston
use the same highway
network to connect to
major cities in the
Southeast and the rest
of the nation. For
international trade,
Savannah is the nation’s
fourth-largest port, and
Charleston is sixth.
Both ports are
expanding, and so are
real estate investment
opportunities along with
them.
The factor that ties it
all together is people.
As the eighth-largest
metro area in the
country, Atlanta is home
for the many
professional resources
real estate investors
need:
-
Commercial real
estate specialists
-
Attorneys and tax
specialists with
expertise in U.S.
and Israeli law
-
Engineering and
construction firms
-
World-class
architectural firms
with international
experience
-
Successful
developers whose
vision has helped
construct suburban
office parks once
used for agriculture
With its rapid growth
over the past 40 years,
Metro Atlanta has
established itself as a
major urban and suburban
center in the United
States. The area has
attracted hundreds of
millions of investment
dollars from throughout
the United States, and
increasing numbers of
foreign companies make
Atlanta their U.S.
headquarters. Yet for
all its growth, Metro
Atlanta is full of
opportunities for
redevelopment and new
construction. Why invest
in Atlanta? Because it’s
a city of opportunity in
the land of opportunity.
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