Market Reports

Atlanta Multifamily Market: Overcoming Historic Supply and Still a Winner

by John Nelson June 9, 2025

Five years after the world shut down, the national multifamily market is still on a roller coaster ride. After the highs of 2021 quickly turned into the lows of 2023, the dust settled in 2024. Today, the market has begun to reactivate while continuing to grapple with the aftereffects of the run-up. While national multifamily transactions soared 22 percent in 2024, Atlanta transaction volume was flat year-over-year as the investment community shifted a favorable view of Atlanta toward ambivalence. Perceptions surrounding new supply and non-paying tenants contributed to the city falling out of vogue with some investors, but Atlanta is a resilient market. With new deliveries having peaked in 2024 and property-level fundamentals rapidly turning the corner, Atlanta may be beaten up, but the light at the end of the tunnel is coming into focus: Atlanta is still a long-term winner. Days of peak supply are over While Atlanta experienced a record 24,000 units delivered in 2024, that figure represents just 4 percent of its total inventory. When compared to other Sun Belt markets like Charlotte (10 percent of total inventory delivered in 2024), Nashville (8 percent) and Dallas (5 percent), the number doesn’t seem as jarring. Looking ahead to …

June 9, 2025

Georgia Market Reports Office Southeast Southeast Market Reports

Competition for Prime Office Space Intensifies in Atlanta

by John Nelson June 2, 2025

Tenants are battling it out for Atlanta’s top-tier office space as trophy availability tightens and new office construction draws to a halt. With no end to the flight-to-quality trend in sight, Class B assets accounted for a whopping 70 percent of the market’s overall negative absorption (-736,682 square feet total net) in the first quarter of 2025, while Trophy assets recorded positive absorption (+114,579 square feet). Furthermore, office buildings that delivered between 2016 and 2021, which amount to almost 14 million square feet of space, currently average 92 percent occupancy. This underscores the growing divide between the haves and have-nots in Atlanta’s office market. Premium space in demand As office leasing activity reaches its highest level since 2019, decision-makers face a rapidly evolving landscape where securing the right space requires a highly motivated and strategic approach. With rising attendance mandates, workforce expansion and a limited supply of premium office space, competition for the best locations is intensifying. In Atlanta, submarkets like Midtown and Central Perimeter continue to outperform. Mini submarkets surrounding mixed-use districts like Avalon and The Battery (i.e. “urban-edge” in the suburbs) are also in high demand among tenants craving walkability and upscale amenities in the metro’s most sought-after …

June 2, 2025

Georgia Industrial Market Reports Southeast Southeast Market Reports

Atlanta’s Industrial Market Remains on a Roller Coaster Ride

by John Nelson May 26, 2025

The last four quarters in the Atlanta industrial market were something akin to a good old-fashioned roller coaster ride at the historic Southeastern Fairgrounds! The absorption, activity and new construction sectors all went for a somewhat bumpy ride this past year. What’s happening? First, the quarterly absorption numbers for the Atlanta industrial market have been anything but steady. Eight quarters ago there was 7.9 million square feet of positive net absorption, followed by five negative quarters in a row (totaling 13.2 million square feet), then came two positive quarters (totaling 7 million square feet) and then back down to 2.8 million square feet of negative net absorption for the first quarter of 2025. The annual absorption numbers were up and down as well. The last four quarters yielded 2.2 million square feet of positive net absorption, but a year ago, at this same time, the absorption numbers plummeted down to a negative 11.3 million square feet. Two years ago, the industrial market experienced 32.5 million square feet of positive net absorption. Second, the activity numbers also were up and down. The second quarter of 2024 recorded 14.4 million square feet of activity, but that number dropped to 13.6 million …

May 26, 2025

Georgia Market Reports Retail Southeast Southeast Market Reports

Retail Reinvention: Atlanta’s Market Shows There Is Room to Thrive

by John Nelson May 19, 2025

Atlanta’s retail market is proving it knows how to adapt, evolve and outperform, even in the face of macroeconomic headwinds. Despite a moderation in leasing and investment sales activity in recent quarters, the city’s fundamentals remain strong. Vacancy rates are at historic lows, rent growth is outpacing the national average and population and income growth continue to fuel long-term demand. Demand and demographics With vacancy rates consistently under 4 percent, Atlanta remains one of the tightest retail markets in the country. The appetite for well-located retail space hasn’t waned, even as broader economic uncertainty has slowed transaction velocity. In fact, strong absorption numbers and a limited supply pipeline have bolstered landlord confidence and pricing power across the metro. What’s driving this resilience? A booming population, rising household incomes and a steady influx of corporate relocations. Employers like Microsoft, Google and Cisco are expanding their footprints, bringing with them jobs, workers and spending power. Some of this growth has been particularly noticeable in Midtown. Redevelopment playbook Instead of ground-up development, Atlanta’s growth strategy has increasingly focused on reinventing aging retail centers in prime locations. With construction costs high and land increasingly scarce, developers opt to reimagine what already exists. These projects …

May 19, 2025

Georgia Market Reports Multifamily Southeast Southeast Market Reports

For Atlanta’s Multifamily Market, The Grass Is Greener on the Other Side

by John Nelson December 17, 2024

Atlanta remains one of the most desirable markets in the country for investors due to its diverse economy, below-national average unemployment rate, steady increase in jobs and population growth. These market fundamentals have translated to a well-performing multifamily market that, despite short-term macro challenges, is in a unique favorable position due to its relatively low supply compared to other peer Sunbelt markets. Demand for multifamily has seen a rebound in 2024 and Atlanta has been resilient in the middle of a multi-year supply wave. Over the past two years, the market delivered approximately 35,000 units and that number is expected to drop to just 9,000 units in 2025 and less than 4,000 units in 2026. This will lead to tightening occupancies and strong rent growth. The city has already recorded its seventh consecutive quarter of net positive net absorption as of the second quarter of 2024, which is a quarterly high since mid-2021 at 5,799 units. New development, on the other hand, has been a bit more challenging due to the higher return on cost requirements, flat rent growth and a lack of meaningful relief on construction costs. Market valuations for newly constructed assets are near current replacement cost, which …

December 17, 2024

Georgia Market Reports Office Southeast Southeast Market Reports

Atlanta’s Office Sector Is Divided Into the Haves and Have-Nots

by John Nelson December 10, 2024

Atlanta’s office market feels like a story of winners and losers. Tenants continue to pay increasing rents for the best located, highest-quality spaces while the sector overall experiences negative office absorption. Those big, shiny objects, so to speak, offer quite a contrast to the results of continued office sector adversity brought on by reduced office attendance, a downsizing leasing trend and swelling sublet space. Who’s in the best position to win? Well-capitalized owners with stabilized debt (or none) that can meet the increasing tenant demands for skyrocketing tenant improvement costs and other rental concessions. With continued construction cost increases and downward pressure on base rental rates, fiscally sound landlords with longer-term business plans are in the best position to transact. And, of course, the newest buildings with the best location, amenity package and a reasonable commute for the majority of the workforce continue to thrive. CoStar Group reports that during the past 12 months, net absorption in office buildings completed before 2020 was negative 4 million square feet compared to 1.1 million for newer properties. The Atlanta office market has produced some sizable transactions this year, fueling some optimism among landlords with larger blocks of space for lease. The most …

December 10, 2024

Georgia Industrial Market Reports Southeast Southeast Market Reports

Atlanta’s Industrial Market Continues Slowdown in Development Activity

by John Nelson December 3, 2024

As the Atlanta industrial market continued its slowdown as of the end of the second quarter in 2024, there were three main stories to consider. First, the biggest news was that the Atlanta industrial market experienced four quarters of negative net absorption of 8.8 million square feet during this past year (we have had five quarters in a row.) At the same time in 2023, we reported 17.2 million square feet of positive net absorption, and in 2022, we reported 42.7 million square feet of positive net absorption, so these latest negative absorption numbers were a huge drop from the previous positive absorption numbers. The second biggest news story was that the Atlanta industrial market saw a dramatic slowdown in big-box deals. There were only nine transactions that were consummated over the past four quarters that were 500,000 square feet or larger, and none of those deals were over 1 million square feet. In contrast, in 2023, 21 big-box transactions were completed that were over 500,000 square feet, and 11 of those deals were 1 million square feet or larger. The year-over-year decline was 15 million square feet less. The third biggest news story was that the new construction …

December 3, 2024

Georgia Market Reports Retail Southeast Market Reports

Atlanta’s Retail Market Experiences Rising Rents, Strong Demand Amid Tight Supply

by John Nelson November 26, 2024

The Atlanta retail market continues to thrive with significant growth driven by a combination of strong demand, minimal new construction and low inventory levels. Long regarded as a key hub for commerce in the Southeast, metro Atlanta has seen its population increase rapidly over the years, which has, in turn, bolstered retail demand. As a result, Atlanta’s retail availability has hit record lows and has created a competitive market for tenants looking to secure high-quality spaces. Rental rates have increased, and investment sales volume has continued at a healthy pace as tenants vie for a limited amount of inventory. Rising rents, investment sales One of the standout trends in Atlanta’s retail market is the consistent increase in rental rates. Retail rents in the metro area have grown steadily over the past few years, with average rents rising from $21.07 per square foot in first-quarter 2023 to $22.83 per square foot by third-quarter 2024. This represents an impressive 5.2 percent year-over-year growth, significantly outpacing the national average of 2.4 percent. The city’s growing population and economic development have spurred greater demand for retail spaces, especially in high-traffic areas. Retailers are willing to pay premium rates to secure space in desirable locations, …

November 26, 2024

Florida Georgia Market Reports North Carolina South Carolina Southeast Southeast Market Reports Student Housing

Universities, Student Housing Properties in Southeast Contend with Hurricane Helene

by John Nelson October 3, 2024

Hurricane Helene made landfall in Northwestern Florida on Thursday, Sept. 26, after being upgraded to a major Category 3 storm that afternoon. Widespread damage across a number of Southeastern states followed in its wake, with many areas experiencing flooding, downed trees, power outages and road closures. At least 175 people have died across six states, according to reports by CNN and The New York Times, and officials fear that the death toll is likely to rise with many remaining missing. Hundreds of roads remain closed across the Southeast — especially in Western North Carolina and East Tennessee, which were hit particularly hard by the hurricane — hampering the delivery of supplies, and more than 2 million customers remain without power. Student Housing Business reached out to universities, owners, operators and students across the Southeast to check in on how they fared during the storm and their experience in the aftermath. Owners, Operators Weigh In Denver-based Cardinal Group tracked its communities in Alabama, Arkansas, Florida, Georgia, Kentucky, North Carolina, South Carolina, Tennessee, Virginia and West Virginia through Hurricane Helene. “Of those communities, four experienced power outages and several had minor roof leaks and flooding, with the largest impact felt in Asheville and Boone, North Carolina,” says Jenn Cassidy, president of property operations …

October 3, 2024

Georgia Market Reports Restaurant Retail Southeast Southeast Market Reports

Retailers Battle for Space Throughout Metro Atlanta Area

by John Nelson July 29, 2024

Remember the “retail apocalypse”? Fast forward to today and it seems to be quite a different story. Retail is currently viewed by many as the most attractive sector within the commercial real estate industry, due in part to an all-time low vacancy rate and increasing rental rates. Atlanta’s retail vacancy rate has dropped to 3.6 percent, which is the lowest rate on record according to CoStar Group. The low vacancy rate coupled with an extremely limited amount of new retail space under development due to high construction costs has created a market unlike anything we have seen in a long time. Increased construction costs along with higher interest rates have made it cost-prohibitive to build traditional retail power centers; however, grocery-anchored retail is the anomaly with Publix taking the lead. Several mixed-use developments that include a large retail component are underway as well, including High Street in Dunwoody, Medley in Johns Creek and Centennial Yards in downtown Atlanta, just to name a few. Additionally, some retail space has been taken off line as malls reinvent themselves. Examples include the partial demolition of North DeKalb Mall in Decatur to make way for a new mixed-use development known as Lulah Hills; Northlake …

July 29, 2024

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