One of Atlanta's most-respected multifamily analysts has three caution signs for the city's burgeoning CBD apartment market. Haddow & Co'sDavid Haddow(here with colleaguesChris Hall andLadson Haddow)tells us the market is making gains in rent growth and occupancy. But underneath the glitz could be these cracks:

• There are 4,420 units under construction and another 4,702 units planned, most of which are pushing the top end of rents between $1.50/SF and $2/SF in a market whose overall demand for that price point is untested.




• Occupancy slipped by the end of Q1 from nearly 97% to 94.7%.




• After a steady incline, rents plateaued at $1.37/SF from Q3 '12 to Q1 '13.

Despite his concerns, David tells us leasing at new and under-construction projects is "doing very well," including at the newest trophy, Novare's SkyHouse Midtown. "That's why we still think it'stoo soon to raise the red flag." Clickthe linkabove to hear his views on Atlanta's overall economic outlook.