Atlanta Retail Market Rents on the Rise

Thanks to strong demographic trends, the Atlanta retail market continues to display steady demand. That is just one of the findings from Marcus & Millichap’s 2Q Atlanta Retail Market Report. Other insights include:

• Atlanta’s population is expected to grow by nearly 70,000 people this year.
• Metro-wide retail vacancy rates have decreased to 3.9%, continuing a downward trend that began in July 2021. The strongest performance was observed in Buckhead, where multi-tenant property vacancy dropped to 0.4%.
• The average asking rent in Atlanta has risen to $20.75 per square foot, representing a significant 37% increase since the end of 2019. The growth is particularly pronounced in submarkets with sub-2.5% vacancy rates, such as Buckhead and the West Metropolitan area.
• Retail construction completions are projected to reach their lowest level since 2013.
• Despite elevated borrowing costs, Atlanta remains attractive to investors. There is strong sales activity in suburban areas and a year-over-year increase in the average sale price for multi-tenant properties.