The commercial real estate market in Atlanta, which faced a slump in sales volume and creeping vacancies through the past year, is under close scrutiny as industry leaders track emerging trends for 2024. Pat Murphy, the new President of the Atlanta Commercial Board of Realtors, and Managing Director at Cushman & Wakefield, pinpoints several key developments, including fluctuations in interest rates and their effects on investment sales, and the uneven field of industrial deliveries on account of rising land and construction costs, as per a report by Bizjournals.com. On a more positive note, multifamily rent growth, although slower, was still on the rise and the highest price-per-square-foot for office space was recorded this past summer in Atlanta.
Another major trend to watch is the shift in workplace strategies. Companies like UPS Inc. are drawing corporate employees back to the office, a move that could potentially augment the office rental market. Murphy expressed optimism for this trend, stating, "If returning to the office picks up as a trend, that's good for the office market," Bizjournals.com reports. About 90% of companies plan a return to office by the year's end, although this decision has been met with mixed reactions from employees who have grown accustomed to remote work, and its associated work-life balance benefits.
While the industrial sector grapples with predicted spikes in vacancy rates, the workplace itself is undergoing a significant transformation. The integration of automation and AI is predicted to reshape business environments, with a particular impact on small businesses as they vie for talent in a competitive landscape. Ryan Demaray, Global Head of Sales SMB at SAP Concur, told AllBusiness.com, "Small businesses will face this challenge in 2024, and I predict they'll rise to the challenge." This battle for skilled workers is further complicated by hiring trends that emphasize the potential of candidates over their past accomplishments and the integration of flexible, mobile-friendly, and virtual hiring solutions.
Moreover, as the office dynamic evolves, companies emphasize the need for a human-centric approach to leadership. This includes prioritizing well-being, encouraging workplace friendships, and leveraging AI without sacrificing the human element in business. In the backdrop of these evolving trends, employee’s mental health is poised to become a pivotal focus area. Employers are expected to recognize the importance of these aspects and the role they play in retention, productivity, and overall company culture. These sentiments were echoed by experts in a recent compilation of workplace predictions by AllBusiness.com.
In summary, Atlanta's commercial real estate industry, alongside workplaces everywhere, is adapting to a series of trends that will shape the economic landscape of 2024. The uncertainty in real estate patterns runs parallel to the transformative changes expected in the workplace, encompassing return-to-office mandates, enhanced utilization of AI, and an increased emphasis on employee well-being and the human touch in leadership.
