Retail Market Summary
For the metro Atlanta retail market most key indicators continued moving in a positive direction in the first half of 2019; however, of slight concern is the fact that under construction is outpacing absorption. Also, the changing trends away from brick and mortar stores as a result of e-commerce continues to be a concern. Overriding that concern currently is metro Atlanta’s rapid growth which continues to attract national and local retailers looking to expand as is evidence by the ongoing strong construction activity. Overall, it appears that the metro Atlanta retail segment is continuing its strong performance.
Below is a quick summary of the Q2 2019 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.
Supply trending up since 2015
Razing of older properties for higher density redevelopment continues
Trending down since 2013
Mid-year 2019 at 4.7%
ABSORPTION, DELIVERIES & UNDER CONSTRUCTION
Absorption slowed in 2018, a trend that has continued into 2019
Red Flag – Under Construction outpacing Absorption
Sales activity remains strong
Cap rates continue to compress in spite of interest rate hikes
Values are trending positive
Continuing strong demand combine to push rental rates higher as mid-year 2019 topped $17.00 per square foot for the first time.