Retail Market Summary
The metro Atlanta retail segment is continuing its strong performance of recent years. However, the changing trends away from brick and mortar stores as a result of e-commerce continues to be a concern. Overriding that concern 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.
Below is a quick summary of the Q3 2019 stats that lead to the conclusion above 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.
Deliveries have slowed significantly in 2019.
Razing of older properties for higher density redevelopment continues.
Downward trend continues in 2019 but rate of decline has been slowing since 2017.
ABSORPTION, DELIVERIES & UNDER CONSTRUCTION
Absorption and deliveries have been slowing since 2017.
Red Flag – Under Construction is outpacing Absorption in 2019.
Annualized sales volume is slightly off the 2018 pace which would mean 3 straight years of sales pullbacks since the 2016 peak.
Cap rates continue to compress in spite of interest rate hikes.
Values continue to rise.
With supply growth slowing and continuing strong demand, upward pressure on rental rates remains.