For almost as long as I can remember driving through the City of Stockbridge, Georgia has been a dreaded chore, but until recently there has been no better way to get to some of the eastern portions of Henry County if you were coming from parts of Clayton County or Interstate 675.
| Soon, that all will be changing. A new bypass is planned running from East Atlanta Road north of Stockbridge to U.S. Highway 42/Georgia Highway 138 east of the city, circling northeast of the City.
The new roadway will begin at East Atlanta Road at its intersection with Valley Hill Road. Valley Hill Road leads to Highway 42 between Stockbridge and I-675. It will end at Highway 42/138 at their intersection with Rock Quarry Road, east of the City. (See the graphic for a depiction of its proposed approximate location.) The combination of Valley Hill Road, the Stockbridge Bypass, Rock Quarry Road and Patrick Henry Boulevard will provide a thoroughfare from U.S. Highway 42 north of the City straight to Jodeco Road just east of I-75 crossing Highway 42/138 and Eagles Landing Parkway in its path. |
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I understand the roadway is still in the engineering stage at this point. To my knowledge, no land has yet to be acquired. But, once completed this new roadway will significantly increase access to parts of Henry County which has previously been difficult to reach.
The sale of your commercial property, land, multi-family property or other real estate investments is an important step towards your future. You deserve to have someone that is willing to work on your behalf, who is aggressive and will negotiate to make sure you're getting top dollar for your property. You should expect to be a priority, receive weekly updates and know your property is being marketed in a manner that can get a SOLD sign on it. Our market is changing daily; you deserve the knowledge and experience of a well-rooted company that can get your property SOLD.
Call Chris Bradford today at 770-961-5520 to buy or sell commercial real estate in south metro Atlanta, Georgia including Clayton County (College Park, Conley, Ellenwood, Forest Park, Lake City, Lovejoy, Morrow, Rex or Riverdale); Henry County (Ellenwood, Fairview, Hampton, Locust Grove, Rex, McDonough or Stockbridge); Fayette County (Brooks, Fayetteville, Peachtree City or Tyrone); Spalding County (Griffin, Orchard Hill or Sunnyside); South Fulton County (Atlanta, College Park, East Point, Fairburn, Hapeville, Lakewood Heights, Palmetto or Union City).
Copyright 2008: Bradford Realty Group, All Rights Reserved.
Mixed Reviews for Single Family Residential in April and May of 2008.
In May, average sale prices in Fayette County, Georgia, ended at a low point just below their February 2008 levels, and Clayton County was at a new low just below their April 2008 level. Henry County was up a fair amount.
While overall, the local market continued its downward trend, graphed, it appears much different than 2007. Are we at the bottom yet? Out of pride, I hope so. I had been predicting the local housing market would hit bottom in spring or summer of this year I don't like to be wrong, but the number of house sales occurring is disturbing.
Number of Home Sales Way Down too!
During our investigation this time we compared the number of sales which have occurred each month during 2006, 2007 and 2008 (as reported by GaMLS) in Clayton County, Fayette County and Henry County. While we were not surprised by the numbers, they did give us pause.
For example, in the month of May 2006 there were 616 detached single family residential home sales in Clayton County. During the same month in 2007 there were 571 such sales. 2008 yielded only 229 such sales. Fayette County and Henry County experienced similar reductions in the number of sales. All three counties are experiencing sales levels of 30% to 50% of what they were in 2006, with the greatest decline occurring since the first of 2008. Of course, the numbers in Clayton County are skewed by the school system problems.
For the last couple of years, May has been the annual high point in the number of sales occurring. In Clayton and Henry Counties this year it is the low point thus far. The question is will this low number of sales translate into even lower sale prices in the months to come?.
Construction and Development Notes
We also caught wind of two more fair-sized local developers reportedly filing for bankruptcy protection. We do notice a few new homes being built here and there, but primarily in very low volumes.
Nations Building News (NBN), the publication of the National Association of Home Builders (NAHB) reported on June 2, 2008, that lenders are now demanding that a high number of builders and developers pay down their loans and/or increase their collateral. Although this helps reduce the lender's exposure it may also increase foreclosures if a builder or developer is unable to produce the necessary cash or collateral.
HousingEconomics.com, a service of NAHB, reports that single family residential building permits year-to-date as of April are down 50% from last year's numbers for the State of Georgia.
Commercial is in a Stall Pattern
From the commercial end, sales are occurring but at a slower pace. We do note some continuing softening of the marketplace. This is readily evident in the number of new and almost new strip retail centers sitting vacant or almost vacant. A few years ago they would have filled up in a heartbeat.
Like with residential, the commercial market stalls before it drops. Prices remain stable for six months or a year as vacancies increase until the owner is faced with lowering the rents to attract tenants. In response to the higher vacancy rates and lowering rents investors begin demanding higher capitalization rates which also depresses sale prices.
Lower rents and high vacancies reduces income and sometimes leads an investor into default as such properties are often over-leveraged. The resulting resell of a foreclosed commercial property further serves to depress the commercial marketplace. The result is a downward spiral very similar to the one faced by the single family residential marketplace.
C-Store Invasion
Surprisingly, we have noticed a significant number of new c-stores/fueling stations under construction. With the high price of gasoline you might think this would be anticipated... more folks trying to reap the windfall profits made by the oil companies. But that is far from the truth. The percentage profit earned by oil companies are no greater than most other businesses of similar size, although it is a lot, and I mean a LOT of dollars.
Station operators make very little off each gallon of gas they sell. (If you question this statement, note that CoStar reports that Uni-Mart/Choice Gas C-store operators just filed for bankruptcy protection citing, in part, the high cost of fuel as the reason for their lack of financial performance.) Most C-Store operators will tell you their money is made off the items sold inside their convenience stores. Last year, one regional chain store manager told us that well in excess of 50% of the profits earned from her store were earned from the sale of tobacco products alone.
With the increasing gas prices many c-store owners are reporting a corresponding drop in inside sales and a disproportionate drop in overall profits. People only have so much money to spend and when faced with deciding between getting to and from work verses getting candy bars and Cokes for the kids there really is no choice.
Prices for Small Multi-Family Appears to be Holding, for now.
According to GaMLS, there were 48 sales of multi-family properties (typically small multi-family like duplexes, triplexes, quads and small apartment buildings) in Clayton, Fayette and Henry counties between January 1st 2007 and May 31st, 2007. For the same period of time this year there has been only 10 such sales.
Even with the reduced number of sales, it appears that Gross Rent Multipliers (the relationship between rent and sales price) are running about the same as they did last year. But, we do not expect that to hold since there are in excess of 80 such properties now on the market in the tri-counties.
In regards to larger apartment communities NAHB reports that confidence in the rental market is weakening and that demand was lower for all classes of apartments in the first quarter of 2008, but in what appears to be a contradiction NBN reports that "Outlook for Rental Housing Strengthens as Condos Sag". So, the news is mixed - even coming from two arms of the same organization.
HousingEconomics.com, a service of NAHB, reports that multi-family residential building permits year-to-date as of April are down 62% from last year's numbers for the State of Georgia.
We have noted some very high apartment land sale prices of late in Henry County. We will continue to monitor this closely.
Summary:
The detached single family residential (houses) market is really suffering However, although the number of sales are extremely low the residential market appears to be starting out better than last year in regards to trends, at least in Fayette and Henry Counties. These two counties do not show as severe of a downward trend as they experienced last year, but that could change.
It would be interesting to know how Clayton County would have done were it not for the actions of the Clayton County School Board (elections coming soon).
At this point my major concern with the house marketplace is the low volume of sales. Will this translate into lower prices in the future?
The commercial market is well past its peak, having stalled and began its downward spiral. We shall see where that leads.
The multi-family marketplace is teetering in stall. Small multi-family properties still retain their value although there are few sales. Values of larger properties are still holding their own but the financing crisis is expected to take its toll.
As we have said in recent months, with single family residential it remains a strong buyers market. With most other property types it is quickly becoming a buyers market. If you are wanting to buy a house, residential lot, or acreage tract, buy NOW. If you are considering selling anything else (with a few exceptions) place it on the market TODAY at a reasonable price or plan to wait several years.
Proudly Serving South Metro Atlanta Over 50 Years!
The sale of your commercial property, land, multi-family property or other real estate investments is an important step towards your future. You deserve to have someone that is willing to work on your behalf, who is aggressive and will negotiate to make sure you're getting top dollar for your property. You should expect to be a priority, receive weekly updates and know your property is being marketed in a manner that can get a SOLD sign on it. Our market is changing daily; you deserve the knowledge and experience of a well-rooted company that can get your property SOLD.
Call Chris Bradford today at 770-961-5520 to buy or sell commercial real estate in south metro Atlanta, Georgia including Clayton County (College Park, Conley, Ellenwood, Forest Park, Lake City, Lovejoy, Morrow, Rex or Riverdale); Henry County (Ellenwood, Fairview, Hampton, Locust Grove, Rex, McDonough or Stockbridge); Fayette County (Brooks, Fayetteville, Peachtree City or Tyrone); Spalding County (Griffin, Orchard Hill or Sunnyside); South Fulton County (Atlanta, College Park, East Point, Fairburn, Hapeville, Lakewood Heights, Palmetto or Union City).
Copyright 2008: Bradford Realty Group, All Rights Reserved.
Currently located at 5020A Highway 42, Ellenwood, Georgia (the southeast corner of Highway 42 and Campbell Boulevard) Fleet has been leasing space in a multi-unit facility.
The industrially zoned site acquired by Fleet has dual frontage, fronting on the Forest Parkway and backing up to North Lake Drive. It is currently occupied by a dilapidated house which Fleet reportedly plans to remove from the site rather than restore.
The location is a strategic location for any trucking related operation as the Forest Parkway intersects with Interstates 75, 285 and 675 and provides easy access to the Atlanta Airport and numerous trucking related business along U.S. Highway 42 (Moreland Avenue).
The transaction was brokered by Bradford Realty Group who represented the seller. Fleet was unrepresented.
Proudly Serving South Metro Atlanta Over 50 Years!
The sale of your commercial property, land, multi-family property or other real estate investments is an important step towards your future. You deserve to have someone that is willing to work on your behalf, who is aggressive and will negotiate to make sure you're getting top dollar for your property. You should expect to be a priority, receive weekly updates and know your property is being marketed in a manner that can get a SOLD sign on it. Our market is changing daily; you deserve the knowledge and experience of a well-rooted company that can get your property SOLD.
Call Chris Bradford today at 770-961-5520 to buy or sell commercial real estate in south metro Atlanta, Georgia including Clayton County (College Park, Conley, Ellenwood, Forest Park, Lake City, Lovejoy, Morrow, Rex or Riverdale); Henry County (Ellenwood, Fairview, Hampton, Locust Grove, Rex, McDonough or Stockbridge); Fayette County (Brooks, Fayetteville, Peachtree City or Tyrone); Spalding County (Griffin, Orchard Hill or Sunnyside); South Fulton County (Atlanta, College Park, East Point, Fairburn, Hapeville, Lakewood Heights, Palmetto or Union City).
Copyright 2008: Bradford Realty Group, All Rights Reserved.
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Since 1979, buyers and sellers in the south metro Atlanta area have trusted Chris to represent them in what is often the largest transaction of one's life, the purchase or sale of real estate.
Since 1979, buyers and sellers in the south metro Atlanta area have trusted Chris to represent them in what is often the largest transaction of one's life, the purchase or sale of real estate.
Chris is uniquely qualified to represent market participants in transactions involving most types of real estate. He has handled, either as a broker or an investor, transactions involving single family residential, multi-family residential, commercial, industrial and special purpose properties.
Chris' wife Brande (Pronounced "Brandy" - Also an Active Rain member.) had always been involved with sales of one type or another. She believes that her place in life is to sell, and she proves it every day. After their marriage, they eventually teamed up to offer real estate buyers and sellers a very strong combination of talents unsurpassed by the competition. Chris, with his vast experience based expertise; Brande with her insatiable drive to sell; and their extensive combined experience in marketing.
Bradford Realty Group (formerly known as Forest Park Realty) has been serving the needs of market participants since 1929. Originally specializing in new home sales in the then rapidly developing Forest Park, Georgia, area, over the years Forest Park Realty expanded their their marketing area to include all of Clayton, Fayette and Henry Counties and have expanded their horizons to include commercial and industrial properties. In the late 1980's, Forest Park Realty changed their name to capitalize off of the reputation earned by the owners of the company.
Chris and Brande have an impressive array of marketing tools they use is most every situation. But, they approach the sale of each property on an individual basis incorporating novel supplemental tools and techniques as appropriate to best market the property.
While marketing tools are important they are not what separates the successful real estate professional from the also-rans. If that were the case every agent associated with almost every real estate company would be outstanding salespersons as they all have access to almost the same set of marketing tools. The difference is the individual.
When Chris and Brande list a property for sale their job extends beyond aggressive marketing. Their job includes the practice of exceptional salesmanship, a quality possessed by few; the few outstanding salespersons. Chris and Brande are among that number.
If you are seeking someone to sell your house, multi-family residential, commercial or industrial property in south metro Atlanta, make Chris and Brande Bradford the first real estate professionals you contact. They will also likely be the last. Click Here for more information.
We market all types of real estate inclusive of single family residential, multi-family residential, commercial (office, retail, special purpose), industrial (office-warehouse, distribution, etc...), multii-family (apartments, duplexes, triplexes, quads, etc...) and land (inclusive of undeveloped land for residential or commercial/industrial use and developed commercial and industrial sites.)
My long history in the local real estate market makes me uniquly suited to market your real estate to its best possible advantage. Call me or Brande today, or Click Here.
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