Philip Skinner Quoted in the Atlanta Journal-Constitution

On October 24, 2009, AGG Real Estate Partner Philip Skinner, was quoted in the Atlanta Journal-Constitution in an article titled, “Atlanta Retail Foreclosures Part of Troubled Economy.”  While foreclosures on residential properties have become a seemingly mainstream occurrence during the economic downturn, metro-Atlanta is just beginning to see the initial wave of foreclosures on retail projects. Developers, who made rent concessions to tenants as consumer spending began its steep decline, are now increasingly finding themselves unable to make mortgage payments and consequently having their property reclaimed by the banks. Mr. Skinner states, “At this point, it’s a question of how long any given owner/borrower can hang on if their asset isn’t performing well. You can usually hang on two to six months. But, when we get to 12-18 months, and experience store closures with retailers of various sizes, it becomes the straw that breaks the camels back.” He believes we’re just beginning to feel “the cumulative weight of the passage of bad times,” and that the upcoming holiday season will determine who will survive.

 

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