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 2nd 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 half way point of 2018, there was a total of 27,499 retail buildings in metro Atlanta housing about 369 million square feet. Supply has been increasing each year since 2012 and at an increasing rate.
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. However, the first half of 2018 has seen new construction significantly outpace absorption.
Sales activity in the market has generally trended up with 2016 recording the six year high. 2017 recorded a slight pullback with 2018 on pace to record another pullback but still on strong volume.
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 which is a trend that continued into the first half of 2018.
Rents were stagnant from 2012-2014 with the five year low in 2015, but have increased sharply since the beginning of 2016.
The metro Atlanta retail market turned the corner in 2014 with significant gains each 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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