In these uncertain times, it is important to have a firm that thinks creatively. The Office Advisors will find a solution to any of your Atlanta commercial real estate needs. The economic cycle we are in has caused major disruption to the hospitality industry. The disruption created a major lack of demand for hotels, casinos, and attractions alike. Companies with large real estate assets and no cash flow are looking at redevelopment.
Now, it is important to have people on your team who think outside of the box. The Office Advisors have changed how Atlanta commercial real estate brokerage is done. Let us help you turn that liability back into an asset. The brokers here are experienced and love taking on a challenge. Check out our Google reviews from clients to see why we are the best in Atlanta commercial real estate!
The current status of hospitality
Firstly you might be wondering how bad are hotels struggling. The answer right now is, pretty bad. Around the country, hotels have suffered due to shutdowns. With no or little travel throughout the majority of 2020. Hotels and other hospitality industries are teetering on bankruptcy.
However, there is light in this darkness for some. The real estate of many of these brands is in great condition. The hotel or casino use is no longer the highest and best strategy. Owners of massive real estate are looking at their options. The Atlanta commercial real estate hospitality industry is still hanging on. Rumblings are beeing heard by operators, but no major shutdown news has hit the headlines.
What happens to the real estate?
Investors and owners alike are putting their heads together. Teaming up to creatively find a solution for the existing buildings. With replacement cost astronomical. The logical path to take is redevelopment. The Office Advisors are Atlanta commercial real estate outside the box thinkers. If you want to work with great minds then contact us via our website.
Creatively assessing trends in the market is what some firms have done. Seeing a need for renters in many areas of the country, developers love the idea of repurposing. Hotels and casinos generally have large campuses. As well as nice amenities. Creating a perfect harmonic transition. If you were going to redevelop a struggling hotel what would you do?
With a rise in the demand for senior living, some firms are starting to see this as a lucrative chance. Extended stay hotels can be repurposed to fit this need. Baby Boomers are retiring in a massive wave. Senior living communities can not be built fast enough. With large demand not only in the Atlanta commercial real estate realm. These properties are being tapped for their potential. These locations already have kitchen and plumbing in place. The cost is drastically reduced to refit space. However, an investor might lose half the amount of doors to meet the standards. So a finished product might go from 150 rooms to 75. This might not sound like a good idea to the lamen. There is a caveat that makes this appealing tho. Senior living rooms rent much higher than a hotel room. Also, they bring in a greater amount than general multifamily. Cashflow is king when it comes to investments. These investors are getting creative to keep up the equity flow.
Multifamily might have seen like the most obvious transition to most. This of course is not lost on the countless investment groups. They are hounding hotel and casino owners. With the demand for rentals constantly on the rise. Distress real estate redevelopment is becoming more and more attractive. Generally speaking, hotels have prime locations. It would be more expensive to demolish and replace than reuse a location. Also, amenities are already in place which lowers the cost as well.
Now, I know you might be thinking that a mixed-use would be great. You are not wrong in this assumption. However, some of these are not what you are thinking. Traditionally there has been a hotel, multifamily, and retail component. What some quirky firms are doing is moving with the times. Looking at options to have student housing, Airbnb, and a hotel. I am sure that the money behind this might have trouble assessing the risk. Whatever these commercial real estate assets become. We are certain that Atlanta commercial real estate will not be immune to it. Our city is constantly changing and adapting.
Are hotels & Casinos going to bounce back?
The future is always unknown. However in cities that have had more stringent lockdown orders are being hit hardest. The historic Grand Chicago Hotel is currently in foreclosure. Just mark it as another casualty of the pandemic. It is reported that the owners owe over $330 million on their first mortgage. You can read more about it here in this Wall Street Journal article. Not all of the outlook is doom and gloom. Even during this economic fallout, we have seen new hotels being built. Highend ones at that. Even in the Atlanta commercial real estate market.
Now, if you want to work with the best in Atlanta commercial real estate, call us. The Office Advisors can assist you in any of your Atlanta commercial real estate needs. Our brokers are professional, but also creative. We push each other to find the best suitable use for a property. No matter how outrageous. Visit our website today to learn more about how we can help. We are Atlanta commercial real estate efficiency experts. Remember that it is always a free obligation consultation. So there is no reason that you shouldn’t hire us. 404-594-3028
The Office Advisors is a subsidiary of Sellect Realty of Georgia. A trusted name in real estate for years. No matter what your Atlanta commercial or residential needs are, we have you covered. Call or visit the websites today. 404-594-3028