The market pulled back slightly in 2017 but still recorded a strong year which has carried over into 2018. However, the changing trends away from brick and mortar stores as a result of e-commerce continues to be a concern. Nevertheless, metro Atlanta’s rapid growth continues to attract national and local retailers looking to expand. Below is a quick summary of the 1st Quarter 2018 Metro Atlanta Retail Market stats as compiled by Crossroads Appraisal Group from information obtained from CoStar.
If you would like a PDF version of the information below, it is available here for your convenience.
At the beginning of 2018, there was a total of 27,373 retail buildings in metro Atlanta housing about 369.4 million square feet. As displayed to the right, the number of buildings in the market has been slowly growing each year since 2012; however, overall square footage declined in 2013 and again 2014 as a result of large scale redevelopment projects.
As shown to the left, vacancy rates have been trending down since 2012, currently at 5.2%.
ABSORPTION, DELIVERIES & UNDER CONSTRUCTION
Net absorption outpaced deliveries and new construction from 2012 to 2017. With quarter one’s findings, construction has just barely outpaces deliveries. We’ll have to see how this keeps up over the year.
Sales activity in the market has generally trended up with 2016 recording the six year high.
Values trended up from 2013 to 2016 while cap rates were compressing. 2017
recorded a slight pull back in value corresponding to an increase in cap rates.
Rents were stagnant from 2012-2014 with the five year low in 2015, but increased sharply in 2016, 2017 and the first quarter of 2018.
The metro Atlanta retail market turned the corner in 2014 with significant gains each of year through 2016. The market pulled back slightly in 2017 but still recorded a strong year which has carried over into 2018. However, the changing trends away from brick and mortar stores as a result of e-commerce continues to be a concern. Nevertheless, metro Atlanta’s rapid growth continues to attract national and local retailers looking to expand.
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