Atlanta Landlords Anticipating Real Estate Boom Near Upcoming MARTA Stations
Moez Hasni and his partners, owners of a small retail building between the Bankhead and Washington Park neighborhoods in Atlanta, had no immediate plans for their 2,200 SF investment property just a week ago. But the recent announcement of new Metropolitan Atlanta Rapid Transit Authority (MARTA) stations has prompted them to think along bigger lines.
Atlanta’s Mayor Andre Dickens unveiled plans for four new MARTA infill stations, one of which is expected to be situated within a short distance from Hasni’s property at 1141 Joseph E. Boone Blvd. This development opens the door for potential redevelopment of existing structures and the establishment of larger retail properties to cater to the potential influx of travelers.
“We would definitely want to redevelop that property into something that would fit into the whole concept of the BeltLine and the MARTA station,” Hasni told media. His plans include a potential new gas station or grocery store should the city permit a station with an alcohol license.
A Boost in Real Estate Value
If the new MARTA stations come into being, property values in their vicinity are likely to escalate. This release has led to Hasni, the chief operating officer of Pine Lake, along with a host of other owners, to envision a promising future for their properties located around these proposed transit stations, which have historically been a substantial real estate value driver.
“There’s going to be a competition to get into those properties,” predicted Sergio Rodolfo Gárate Álvarez, the director of Emory University’s Goizueta Business School real estate program.
An executive order issued by Dickens on April 11 mandates MARTA, the Atlanta BeltLine Inc., and the city to work together in planning, designing, and financing the new stations. While specifics about the parcels for the new stations have not been provided, they are likely to be located where the 22-mile BeltLine loop intersects with MARTA rail, according to a MARTA spokesperson.
Speculation and Skepticism
Although the announcement has provoked a fair share of speculation concerning land values, it has also led to some skepticism. Critics argue that the mayor did not disclose how the stations would be financed or present a timeline. Nevertheless, even the slightest possibility of new fixed rail access points can stimulate land speculation.
The effect of mass transit proximity on property values is a well-documented phenomena. According to a study by the American Public Transportation Association covering 2012 to 2016, commercial properties in close proximity to transit stations in numerous U.S. cities saw a price premium varying between 5% and 42% per square foot over properties further from transit stations.
Apart from discussing property values, the announcement has also led to landlords anticipating lucrative business opportunities, particularly in the retail sector around the proposed transit station areas.
“It’s going to be a game changer for Armour Yards having the station and the BeltLine,” said Jeff Bellamy, Executive Managing Director at JLL.
Looking Forward
Despite the optimistic prospects, landlords are aware of factors that could affect the implementation of these proposed infill MARTA stops. Speculation, although encouraging, is countered with a degree of scepticism about the feasibility of the project, particularly regarding funding.
“Hypothetically, if there’s a new train station by our office, that is amazing,” said Eric Kronberg, the founder of the firm Kronberg Urbanists + Architects. However, he expressed doubts on the logistics, stating that: “The magic infrastructure fairies will have to show up with their magic buckets of money.”
Whether the new MARTA stations will materialize remains uncertain, but the potential economic impact on nearby real estate is a stimulating notion for Atlanta landlords.
