Carter is master developer of the Banks, a $600 million mixed-use development in downtown Cincinnati, and education-related projects in Oklahoma and Louisiana.
Apartment development is hot and rents are up as renters make up a larger percentage of the residential pool following the housing collapse. Novare Group and Daniel Corp./Selig Enterprises, for instance, are launching separate 20-plus-story apartment towers in Midtown.
The planned redevelopment of the old City Hall East facility into the mixed-use Ponce City Market and recent sales of major office buildings are proof of renewed energy and less of a gun-shy attitude by real estate investors if the project has a good story to sell, said Summey Orr, managing partner of Atlanta commercial real estate law firm Hartman Simons & Wood.
Deals need the right price, the right tenants and/or the right locations.
“I don’t think it’s a booming activity, but it is a bit of a thawing as people see opportunities and take chances to find deals," Orr said.
Carter’s investment arm is seeking distressed office buildings in key markets with potential for a turnaround, Taylor said.
Office market vacancy remains around record levels, and a healing depends on the pace of job growth, he said.
Corporate America's use of office space, however, has fundamentally changed.
“Companies are going to be more efficient and more cautious as they look at their fixed costs” such as office space, he said.
The shifting focus follows Carter’s sale earlier this year of its brokerage and property management divisions to Cassidy Turley.