The metro Atlanta retail market turned the corner in 2014 with significant gains each year through 2016. Metro Atlanta’s rapid growth continues to attract national and local retailers looking to expand as is evidence by the significant construction activity in 2018. Below is a quick summary of the 3rd 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.
Heading into the fourth quarter 2018, there was a total of 27,613 retail buildings in metro Atlanta housing about 368.1 million square feet. Supply has been increasing rapidly since 2012.
Vacancy rates have been trending down since 2012, currently at 5.1%.
ABSORPTION, DELIVERIES & UNDER CONSTRUCTION
Net absorption outpaced deliveries and new construction from 2012 to 2017. However, 2018 has seen new construction starts 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 be slightly behind 2016 but ahead of 2017.
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 while 2018 appears to be on pace to outperform 2017 but still slightly behind 2016’s performance. 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 as is evidence by the significant construction activity in 2018.
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