Q3 Atlanta, GA Retail Market Report
Market Overview
Strong demand, low vacancy rates, and favorable demographics characterize Atlanta’s retail real estate market. While leasing activity has seen recent declines, the metro area’s economic diversity and continued population and income growth are expected to support its retail sector’s resilience and growth. Atlanta remains an attractive market for corporate relocations, with notable companies like Microsoft, Google, and Cisco establishing offices in the region. The market’s economic advantages, including cost-effectiveness, accessibility, and a skilled workforce, position it as an attractive destination for both businesses and individuals.
The metro is among the top markets in the country in terms of trailing 12-month net absorption, along with major Sunbelt markets like Dallas-Fort Worth, Phoenix, and Houston.
Market Performance
The 12-month rent growth in Atlanta stands at 6.0%, notably higher than the national average of 3.4%. Buckhead and Midtown remain the most expensive retail submarkets, with market rents averaging more than $30 per square foot and top-tier buildings commanding over $40 per square foot. Atlanta’s retail market has experienced positive net absorption for eleven consecutive quarters leading into late 2023. The vacancy rate is at 3.6%, the lowest it has been in this century. The market has approximately 1.8 million square feet across 76 properties under construction, which is equivalent to 0.5% of its existing inventory. Transactions that primarily involved redevelopment purchases, sale-leaseback agreements, or large portfolio deals have made up most of the market’s sales volume in the last 12 months.
The 12-month sales volume for the Atlanta retail real estate market stands at $2.4 billion.
Atlanta by the Number Last 12 Months
- Vacancy Rate: 3.6%
- Rent Growth: 6.0%
- Deliveries SF: 1.2M
- Absorption SF: 2.3M
- Sales Volume: $2.4B
