Erich Durlacher, a creditors' rights and bankruptcy attorney in Burr & Forman’s Atlanta office, provided critical insights in a recent article by The Atlanta Journal-Constitution about the ongoing challenges in Atlanta's office towers market. The piece discusses the significant rise in distressed commercial loans as older office buildings struggle with high vacancy rates and declining values. Erich emphasized the difficulties faced by owners of aging properties, particularly those in less desirable areas, noting that the decreased demand makes it nearly impossible for these buildings to attract tenants.

“If you’re in downtown or a Class B or C building, forget it,” Erich said. “With decreased demand, every candidate and every company is trying to rationalize their footprint and minimize their occupancy expense.”

The article also highlighted the complex dynamics between struggling property owners and reluctant lenders. With a high number of defaulted loans, many landlords are ready to relinquish their properties, but lenders are often hesitant to take back these depreciated assets. Erich’s comments shed light on the broader implications of the current market turmoil, where both borrowers and lenders are facing substantial financial losses. As the Atlanta office market continues to reset, Erich’s perspectives underscore the critical challenges and opportunities that lie ahead.

To view the full article on The Atlanta Journal-Constitution’s website, click here. Subscription required.