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.
