Atlanta Retail Market Report

Demographics stable amid turnover of space. Among major metros, Atlanta ranked in the top half for annual growth in household incomes and retail sales in the second quarter. At the same time, however, it also posted a fourth consecutive period of negative net absorption in retail space, the longest span since at least 2007. Buildings larger than 75,000 square feet saw the most exits, as prominent retailers such as Joann’s, Kroger, and Macy’s closed locations. Nevertheless, leasing activity is expected to remain relatively steady, helping to backfill recently vacated space. Additionally, a construction pipeline that is nearly 75 percent pre-leased should further limit vacancy pressures. Barring additional retailer bankruptcies, these factors should support improved performance moving forward. Multifamily growth offers a potential boost to retail demand.