Lynn McKee, director of the Master of Science in commercial real estate program at Georgia State University’s J. Mack Robinson College of Business, joins Host Carol Morgan on the Atlanta Real Estate Forum Radio podcast to discuss the forces fueling Atlanta’s growth, the pervasive challenges of housing affordability and how education is preparing the next generation of real estate leaders.

While many look to shiny new towers or popular leisure spots, McKee emphasizes that Atlanta’s enduring success stems from three fundamental, often non-obvious assets that drive business and demand:

McKee said, “We kind of take it for granted now, but having a major international airport that connects Atlanta to the world is a tremendous business driver.”

McKee explains that the COVID-19 pandemic has exacerbated a longstanding issue: a growing mismatch between housing costs and what people can afford. That spectrum has changed significantly in recent years, and now the affordability housing crisis affects the bottom two-thirds of the income spectrum. As prices go up, the path to homeownership feels daunting for first-time homebuyers. And without the funds to buy a home, these individuals are missing out on the opportunity to build equity.

McKee said, “What really drove the current crisis is, during the pandemic, home values went up 45%, and people’s incomes just haven’t gone up sufficiently to compensate for those increases in housing.”

How can change be enacted? McKee emphasizes the critical role of private developers in addressing affordability, but stresses that public support is non-negotiable. The financial gap must be covered by a mix of government subsidies, such as Low-Income Housing Tax Credits (LIHTC), employer-assisted programs and local tax abatements.

The astonishing 300% profit on a recent Alpharetta data center sale wasn’t about the old building itself. It was about the three things that matter most in the AI era: land, pre-existing entitlements and massive power capacity from an adjacent Georgia Power substation. The old structure will now be “scraped” to make way for a billion-dollar, modern facility.

However, McKee warns that while development profits are enormous, the long-term ownership of these assets is fraught with risk. Rapid technological advances mean a state-of-the-art facility today could be functionally obsolete in 10 years, leading to lower returns for the institutional funds that typically hold these assets.

McKee is also seeing a fundamental shift back to the office, driven by employers seeking collaboration and innovation in the workplace. At the same time, employees want to return to face-to-face interactions that enable mentorship and career advancement. The future is a hybrid schedule, not a return to the 9-to-5 grind.

He suggests the true opportunity lies in repurposing: buying suburban B- and C-class office parks for their land value, knocking them down and rebuilding residential and mixed-use communities.

McKee describes Atlanta’s real estate cycle as a “stalled recovery.” While the market has theoretically hit a bottom and values have been reset, the prevailing great uncertainty—driven by political factors, interest rates and inflation—has caused major investors and developers to freeze. McKee remains hopeful for a multi-year growth run, but for now, the industry is holding its breath.

Curious about what’s next for Atlanta? Tune in to the full episode to learn more about Atlanta’s real estate growth. For more information about Georgia State University’s Master of Science in Commercial Real Estate, visit https://online.gsu.edu/program/commercial-real-estate-ms/.

The J. Mack Robinson College of Business at Georgia State University is ranked in the Top 40 business schools nationwide and the Top 50 worldwide. With degree paths in risk management and insurance, computer information systems, marketing and real estate, the school prepares its students with hands-on learning opportunities that embrace modern practices and evolving technologies.

Thank you to Denim Marketing for sponsoring Atlanta Real Estate Forum Radio. Known as a trendsetter, Denim Marketing has been blogging since 2006 and podcasting since 2011. Contact them when you need quality, original content for social media, public relations, blogging, email marketing and promotions. A comfortable fit for companies of all shapes and sizes, Denim Marketing understands marketing strategies are not one-size-fits-all. The agency works with your company to create a perfectly tailored marketing strategy that will suit your needs and niche. Try Denim Marketing on for size by calling 770-383-3360 or by visiting www.DenimMarketing.com.

Atlanta Real Estate Forum Radio, presented by Denim Marketing, highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact Denim Marketing at 770-383-3360 or fill out the Atlanta Real Estate Forum contact form. Subscribe to the Atlanta Real Estate Forum Radio podcast on iTunes, and if you like this week’s show, be sure to rate it. Atlanta Real Estate Forum Radio was recently honored on FeedSpot’s Top 100 Atlanta Podcasts, ranking 16th overall and number one out of all ranked real estate podcasts.

The post The Atlanta Beltline, Power Lines & Policy: What’s Driving Growth appeared first on Atlanta Real Estate Forum.