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| | | (SPECIAL/www.northfulton.com)
EC2 North Fulton, a 22,000-square-feet condo office park off Old Roswell Road in Roswell, is one of the few new condo office parks to recently become available in North Fulton. It’s office space ranges from 1,035 to 1,870 square feet in 10 units.
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December 12, 2007
North Fulton's commercial real estate market remains strong despite the troubled residential market. David and Bill Sonenberg say they continue to move property.
"Georgia's not going to stop growing," David said.
High demand has The Sonenberg Company on the hunt for even more listings.
"Right now in the North Fulton area it is strong," Bill said. "We've been fortunate. In the last two months, we moved $7 to $8 million of property."
Bill said the office condominium market is as hot as it's evern been. He's sold seven units in the last 30 days and would have sold more if he had found more available. Two units in Sun Valley Office Park in Roswell sold within a week of listing.
Low interest rates help the commerical market hold up, David said.
"But there are so many people in North Fulton who control their office, meaning they can have their office wherever they want it," he said.
The economics of ownership are very strong, Bill said. The ideal scenario is for a small business owner to buy the unit and lease it back to the company. The toughest part for a small business owner will be to get over the down payment. Mortgage rates are less than rent. A few tax advantages exist also.
Small businesses moving into North Fulton office condos don't put more traffic on the road between Sandy Springs and points south up to Roswell.
"What's happening is people are not driving down Ga. 400," David Sonenberg said.
People have found they are spending 30 percent of their day in a car commuting between work and home.
"Coupled with $3 a gallon gasoline, and it starts to become a bear in terms of both economics as well as timing," David said.
Back in 1975 when he worked in downtown Atlanta, David said he could leave his house, get on Ga. 400 and be in his office in 30 minutes.
"You could roll a bowling ball down 400 and not hit anybody," he said. "Thirty years later, you can't be at 285 in 30 mintues."
Demographics drive the market in any area, he said. A high median income brings people to the area, and helps keep them here.
"They live here and they stay living here, and I think that all leads to wanting to have your office here," David said.
Developers have not overbuilt the market, so absorption kicks in – many office condo parks stay at 98 percent occupancy. That high an absorption rate props the market up and keeps it moving, David said.
"There's more people really wanting to buy than we have the availibility of units right now. We are constantly out there searching for units. It's a good thing," David said.
Lenders really do like the condominium market, so there are attractive interest rates," Bill said.
The Sonenberg Company handles more than sales, he said.
"The leasing is starting to pick up some, I would say, in the last 30 days. Sales has really been the stronger of the two, without question," Bill said.
Sales range from about 1,000 square feet to more than 18,000 square feet of space. The company picked up listings at EC2 North Fulton, a 22,000-square-feet condo office park off Old Roswell Road in Roswell. It's office space ranges from 1,035 to 1,870 square feet in 10 units. Units were advertising prices between $176 and $188 a square foot, making prices range from $184,900 to $324,900 for its available units.
"Personally, we'd love to see the residential market turn," David said. "There are a lot of people being impacted."
In addition to the construction industry and sellers of homes, landscapers have been hurt. The landscape firm that takes care of the properties the Sonenbergs manage have had to lay off people.
"I think the strength of the commercial market long term will be tied somewhat to the turnaround of the residential," David said.
- www.northfulton.com
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