RCA in the commercial property press:

Economy Curbs Atlanta's Commercial Property Market

Columbus Ledger-Enquirer reports: More than 3 million square feet of new office space scheduled to become available in Atlanta over the next 12 months. That will pile more inventory on a commercial property market facing higher vacancies amid a severe economic downturn and unemployment that hit 9.1 percent in March.

The multiple projects are emblematic of a development rush that gripped Atlanta during the real estate boom and is now giving tenants the upper hand for the first time in years.

Sales of office properties have slowed to a crawl. Real Capital Analytics, which tracks commercial real estate transactions, shows only one deal that closed this year: The purchase of a 118,000 square-foot medical office space for $26.7 million by Meadows & Ohly LLC.

Yet many properties are on the market, with some sellers offering to lend buyers the money themselves.

Several recent Atlanta listings, including one for a 15,000 square-foot retail space selling for $1.4 million, boasted owner financing available.

Atlanta's market for industrial space has also been dampened by the addition of new properties beginning in 2005.

Vacancies climbed to 16 percent last year and are projected to reach 17 percent this year, ahead of the 12.6 percent expected for the U.S., Nadji said.

Some sales are taking place. Stockbridge Real Estate Partners signed contracts to buy at least seven warehouse properties in March, according to Real Capital Analytics.