Data firm Trepp reports that metro Atlanta’s office delinquency rate is about 7%, nearly triple the national rate. More than 10% of Atlanta’s office stock has a loan maturing in 2023, which research firm CommercialEdge found is among the largest proportions for major cities. Things got so bad that Buckhead boosters bought full-page color ads in the Wall Street Journal to entice condo buyers and employers to move into the affluent community to take advantage of the area’s overbuilding pain. Several shimmering new office towers planned when the job market was strong sat vacant. Atlanta landmarks like Bank of America Plaza, the city’s tallest skyscraper, went into foreclosure.
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Henry Lorber, an expert in distressed real estate with Henry Lorber and Associates, said office buildings that decline in value or go through foreclosure will have ripple effects on nearby properties, lowering their value in kind. When the values of commercial properties rise, so do their contributions to city, county and school tax rolls.īut the pain in national and Atlanta office real estate markets threatens to sink values, hurting tax collections that local governments rely on to provide services. A stable office market and its workers feeds other industries, boosting nearby retail and restaurants.
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