“Rising Retail Rents in Atlanta’s Market”

"Rising Retail Rents in Atlanta's Market"

The Atlanta retail market is experiencing steady demand, thanks to favorable demographic trends. This is one of the key findings from Marcus & Millichap’s 2Q report on the market. Other notable insights include:

– The city’s population is expected to grow by approximately 70,000 people this year.
– Vacancy rates for retail properties across the metro area have decreased to 3.9%, continuing a downward trend that began in July of last year. Buckhead stands out as having the strongest performance, with multi-tenant property vacancies dropping to just 0.4%.
– The average asking rent in Atlanta has risen significantly since the end of 2019, reaching $20.75 per square foot – a remarkable increase of 37%. This growth is most pronounced in submarkets with vacancy rates below 2.5%, such as Buckhead and West Metropolitan.
– Retail construction completions are projected to be at their lowest level since back in 2013.
Despite higher borrowing costs, investors continue to find Atlanta an attractive market for investment opportunities – particularly in suburban areas where there has been strong sales activity and an increase in average sale prices for multi-tenant properties compared to last year.

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