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 …
