Marcus & Millichap

Atlanta Retail Investment Forecast

Outlook 2019

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Atlanta’s Vacancy to Decline in 2019; Attractive Yields Drawing Investors Nationwide

The metro’s retail market poised to tighten for eighth consecutive year. Although growth in the local job market is beginning to cool, broad-based payroll expansion will support the retail market. Tech firms remain a healthy source of new positions as both large and small companies expand or move to the area. BioIQ, for example, is bringing 500 positions to Cobb County and investing $5 million into the community. New jobs are expected to equate to approximately 1,000 households forming each week in the metro this year, supporting strong demand for big-ticket items. Overall, retail sales growth is projected in the low-5 percent range, modestly above the post-recession average. On the supply side, a small uptick in construction will have little impact on vacancy due to pre-leasing commitments. Nearly 80 percent of retail space underway at the beginning of the year had secured tenants prior to completion. The balance of supply and demand favors healthy, albeit measured, rent gains in 2019.

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