Southeast Market Reports Archives - REBusinessOnline

Port Authorities Advance the Southeast’s Industrial Sector With Infrastructural Investments

John Nelson — Fri, 06 Feb 2026 12:39:00 +0000

In 2022, the Port of New Orleans (Port NOLA) announced the Louisiana International Terminal (LIT), a new $1.8 billion container terminal coming to Violet, a small city about 10 miles downriver (or south) from New Orleans in St. Bernard Parish. The project is a public-private partnership between Port NOLA and two private maritime industry leaders, Ports America and Terminal Investment Ltd., and is being funded with private capital and public funding from the State of Louisiana and federal sources. The U.S. Army Corps. of Engineers is managing LIT’s environmental review and permitting process, after which the public-private partnership will begin construction. Set for completion in 2028, the ambitious project is expected to generate 18,000 new jobs by 2050 and handle 2 million TEUs (twenty-foot equivalent units) of cargo traffic annually. “I consider it the most important project in the entire region,” says Andrew Marcus, founder of local commercial real estate services firm Agile Coast. “From an economic development perspective and from a quality-of-life perspective, it is the single-most important project for our region, period. The LIT is going to be the beachhead for getting modernized containerized cargo ships to come in, and we have the ability to have several terminals…

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Raleigh-Durham’s Multifamily Market Is Normalizing Following Several Quarters of Softness

John Nelson — Mon, 02 Feb 2026 12:18:00 +0000

The Raleigh-Durham region continues to be one of the premier pockets of growth in the Southeast, thanks to robust employment opportunities and a steady pipeline of renters graduating from area schools including Duke University, University of North Carolina-Chapel Hill and North Carolina State University. Multifamily developers have been more than eager to help satiate the demand for housing in the area in recent years. According to Yardi Matrix, the Raleigh-Durham region had nearly 14,500 apartments deliver in 2024. The research platform also reported that approximately 8,600 more units came on line in the first three quarters of 2025, which represents a 4.2 percent growth rate compared to the market’s existing inventory. Like many of its peer markets in the Sun Belt, the Raleigh-Durham region is working its way through the excess supply, which is extending the lease-up period for newer properties. “For projects delivered in late 2023 into early 2024, absorption has slowed compared to historical norms,” says Lisa Narducci-Nix, director of business and property development at Drucker + Falk. Southeast Real Estate Business recently caught up with Narducci-Nix to discuss the health of the Raleigh-Durham apartment market, as well as larger operational trends. The following is an edited interview:…

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Demand for Trophy Buildings Sets the Tone for D.C.’s Office Market

John Nelson — Tue, 13 Jan 2026 12:48:00 +0000

Fundamental macroeconomic changes in the U.S. office market, combined with the enduring resilience of Washington, D.C., make this a unique moment for investment in the region’s office sector. Forward-thinking, data-driven analysis will uncover unprecedented opportunities. Persistent flight-to-quality trends continue to drive a polarization of the D.C. office market more severely than the national average, with trophy vacancy lower and commodity vacancy higher than the overall U.S. office market. Recent sharp federal government cutbacks have caused uncertainty throughout 2025, driving additional occupancy loss in the commodity segment of the market, while a resilient private sector shows seemingly endless demand for top-quality space. Overall, midsized and large private sector tenants in the market plan to grow by an aggregate 350,000 square feet. Expected growth will be driven by law firms, higher education institutions, business and financial services firms and trade associations, including several new-to-market tenants. As a result, standard Class A and B/C vacancy rates are hovering at historic highs of 24 percent and 26 percent, respectively, while trophy vacancy sits at a historic low of 10.2 percent. The overwhelming majority of large and mid-sized blocks of top-quality space are also encumbered. If trophy space continues to be absorbed at the same…

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Has D.C.’s Industrial Sector Shifted to a Tenant’s Market?

John Nelson — Mon, 05 Jan 2026 12:50:00 +0000

As 2025 closes, data suggests that the greater metropolitan Washington, D.C., area is stable but, like most markets nationally, remains below the industrial peak values achieved post-pandemic when vacancy rates hovered below 5 percent. That is no surprise, as we may never experience another “perfect storm” scenario in our lifetimes. The overall market for industrial buildings 100,000 square feet and larger is a healthy 6.3 percent, inclusive of data centers. A significant percentage of vacancy is masked by the build-out of data centers in Northern Virginia because, removing this asset class, the vacancy increases to approximately 9.1 percent. The number increases closer to 10 percent when we focus more specifically on logistics spaces, according to data from CoStar Group. Confidence remains strong for leasing activity in larger Class A industrial buildings, but the underlying economic fundamentals, uncertainty in tariff policy and geopolitical instability could lead to a continued trend of higher vacancy rates in the future. Consumer spending underpins the economy and is increasingly dependent on wealthier households who account for the majority of spending. Low- and middle-income households have continued to be squeezed by the rising costs of food, fuel and housing, which impacts the demand for shipped, manufactured…

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Tariffs Are Moving the Needle for Manufacturing, Distribution Demand on the I-85 Industrial Corridor

John Nelson — Tue, 23 Dec 2025 12:31:00 +0000

More than seven months have passed since Liberation Day, where the Trump administration declared a sweeping package of tariffs for foreign trade partners and specific commodities, including steel and aluminum. Since the announcement in early April, there has been a boon in the amount of multibillion-dollar advanced manufacturing, life sciences, semiconductor and data center investment announcements around the country, with the markets along the I-85 Industrial Corridor being no exception. To name a few: Toyota has recently begun production at its $13.9 billion battery plant in Liberty, N.C.; Rivian broke ground on its $5 billion electric vehicle plant near Social Circle, Ga.; JetZero is planning to create 14,500 jobs for an aerospace manufacturing facility in Greensboro, N.C.; Eli Lilly is developing a $5 billion pharmaceutical manufacturing facility in the Richmond suburb of Goochland County, Va.; and Google is developing a trio of data centers in metro Richmond’s Chesterfield County. “We have incredible momentum bringing business back into the United States, which is going to drive industrial growth, particularly in the Southeast,” says Jim Anthony, CEO and founder of APG Companies. “We’re not unionized, we have lower taxes, fewer regulations and lower cost of energy, which is huge factor in site…

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D.C. Retail Remains a Great Opportunity, If You Know Where to Look

John Nelson — Mon, 22 Dec 2025 14:33:27 +0000

The Washington, D.C., commercial real estate market is intricate, shaped by broad economic trends and local dynamics. The recent federal government shutdown underscored ongoing challenges, intensifying uncertainty and slowing local transactions. Continued ambiguity around trade and tariff policies further complicates business planning, adding to the region’s cautious dealmaking environment. Anxiety affects the region’s key economic source: federal workers and contractors, who make up 40 percent of its economy. Since January 2025, federal job losses here have outpaced the national average, increasing the risk of a local slowdown. Despite the area’s wealth, ongoing job uncertainty should guide all investment and operational choices. The interplay between federal employment trends and local business activity means that investors and operators must remain vigilant, adapting strategies to respond to shifting workforce dynamics and consumer sentiment. Tale of two marketsThe D.C. retail market is split: downtown faces challenges due to office vacancies and low weekday traffic, while suburban and residential-heavy urban areas are thriving. Affluent spots in Northern Virginia and Suburban Maryland have the lowest vacancy rates thanks to stable local shoppers. These areas benefit from consistent foot traffic and resilient spending patterns, which help insulate them from broader economic volatility. From a capital markets perspective,…

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Steady Amid Constraints: The Greater New Orleans Industrial Market

John Nelson — Mon, 15 Dec 2025 12:56:00 +0000

The Greater New Orleans industrial real estate market in 2025 is characterized by steady but cautious demand, where a persistent lack of new supply continues to limit product availability and constrain tenant options despite a user base that shows signs of wanting to grow. While local prospects for business are good, tenants seem to be keeping a wary eye on national economic trends. Interest rates have increased borrowing costs, prompting tenants to delay expansions and relocations as they navigate tighter budgets. Decision making is further slowed by uncertainty surrounding potential tariffs and their possible effects on material costs that could ripple through supply chains. High insurance premiums in a region affected by hurricanes force operators to reallocate funds from growth initiatives to coverage. Construction costs remain elevated; combined with a scarcity of viable development sites, speculative builds are extremely rare, which keeps inventory tight. These headwinds, some of which should sound familiar in other markets around the country, have slowed deal velocity, though there are projects in the works that can build momentum in South Louisiana. The $1.8 billion Louisiana International Terminal (LIT) in St. Bernard Parish, a public-private partnership with Ports America and Terminal Investment Ltd., begins construction in…

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New Orleans CBD Continues to Transition from Office-Centric to 24/7 Destination

John Nelson — Mon, 08 Dec 2025 12:31:00 +0000

One cannot talk about, analyze, nor understand the New Orleans Central Business District (CBD) office market without a corresponding discussion of the entire CBD, not just the office building submarket. This is especially true when we look at the evolution of the New Orleans CBD since the late 1980s, and, more specifically to this article, since Hurricane Katrina. The New Orleans CBD office market is still the largest office submarket in this region. The submarket contains approximately 10.3 million rentable square feet. The balance of our submarkets (East Metairie, West Metairie, Kenner, Elmwood, West Bank, New Orleans East and the Northshore) contain a total of 8.6 million rentable square feet. More importantly, the CBD remains home for most of New Orleans’ “corporate” tenants, virtually all the region’s major law firms and financial institutions. That is the good news. However, the CBD has been transformed over the past 30+ years — and especially for the past two decades after Hurricane Katrina — from a traditional office-centric CBD to a mixed-use downtown area. The supply of office space in the CBD has shrunk from 70 buildings and 16.5 million rentable square feet in 1991, to 50 buildings and 13.8 million rentable square…

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Richmond’s Industrial Market Is an Institutional Capital Darling

John Nelson — Thu, 04 Dec 2025 19:11:52 +0000

The Richmond industrial market has been undergoing a dramatic transformation that reads like a case study in strategic positioning and timing. Over the past decade, this “regional market” has become a U.S. powerhouse, boasting all the ingredients to attract, maintain and organically grow supply-chain focused global occupiers and institutional capital investment. Richmond’s strategic advantages include its prime location on I-95 — equidistant to both metropolitan D.C. and the Port of Virginia — attractive labor demographics, disciplined development and strong demand from Fortune 100 occupiers. Additionally, the surging data center hyperscalers and their suppliers have further catalyzed growth in the market. The result? Richmond now features one of the lowest U.S. vacancy rates, sustained year-over-year rent growth, a feeding frenzy of institutional capital routinely producing 10 to 15 bids and lender quotes per property that have fundamentally reshaped who owns, develops and finances industrial real estate in the market. From regional player to national stage Over the past decade, Richmond experienced a 68 percent increase in institutional investors and lenders, growing from 47 participants in 2015 to nearly 80 unique institutions that have invested in and loaned on Richmond industrial assets, with 50 cents of every dollar invested in Richmond coming from…

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Metro New Orleans Multifamily Market Remains Balanced 20 Years Post-Katrina

John Nelson — Mon, 01 Dec 2025 12:28:00 +0000

August 29, 2005 — a day no New Orleanian will forget: Hurricane Katrina. It has been two decades since the levees were breached and flood waters took over the city’s streets, homes and businesses. It was an event that changed the trajectory of the city of New Orleans. Twenty years later and the resiliency of New Orleans to always push on is evidenced by the stability of our multifamily market. Through a period of demolition, renovation and rebuilding, the overall market remains stable. The barriers to entry in the Metro New Orleans multifamily market are significant, and today as in the past, the equilibrium between supply and demand remains in sync. Like other Sun Belt markets, insurance premiums, interest rates and affordability are factors. However, they have not been a deterrent to the viability of the market or interest from investors and the capital markets. Our inventory of more than 55,000 units (professionally managed) spread out over seven parishes, remains strong. Overall metro occupancy is being reported between 92 to 94 percent with average rents of $1,300 per month. Parish by parish Eastern New Orleans and Algiers, which each have an inventory of approximately 4,000 units, offers the most affordable…

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Atlanta Multifamily Market: Signs of a Recovery After a Sharp Downturn

John Nelson — Mon, 24 Nov 2025 12:35:00 +0000

Atlanta’s multifamily market has been in a slump that would even make Braves fans wince. After peaking with record-breaking sales in 2021, volumes slid as borrowing costs climbed and supply piled up. But just like any good ballclub, the fundamentals matter, and the data suggests momentum is quietly building for a 2026 comeback season. Sales volume trends According to research from CoStar Group, institutional multifamily sales in Atlanta (transactions of $50 million or more) peaked in 2021 at $12.8 billion, driven by record pricing, historically low borrowing costs and robust rent growth. Since then, record supply, rising expenses and a sharp increase in borrowing costs have pushed sales volumes down by more than 70 percent, averaging just $3.5 billion annually over the past three years. While the broader U.S. economy has surged since 2022 — the S&P 500 has climbed 45 percent since fourth-quarter 2022 — commercial real estate has been searching for its bottom. Data now suggests that Atlanta has reached this inflection point, and history indicates increased activity and rising values in the years ahead. Parallels to the GFC Looking back at the global financial crisis (GFC) provides valuable context. The chart above (inflation-adjusted using Real Capital Analytics’…

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Exhibit on Atlanta Retail: Observations from Intown to the ‘Burbs

John Nelson — Mon, 17 Nov 2025 12:35:00 +0000

If you’ve spent any time driving around Atlanta recently, you’ve probably noticed something. More development sites are returning with bulldozers and developers are taking down land parcels in the suburbs the size of small European countries. But this time, the approach is more strategic than ever. Gone are the days when a developer would carve out a shopping center for base rents less than $40 per square foot and call it a day. Today, some metro Atlanta developers are assembling larger tracts and creating hybrid projects that include multifamily housing, storage and even industrial uses in the back of the parcel, saving the front-facing road frontage for ground leases, build-to-suits and limited shop space. Automotive and restaurants concepts are clamoring for pads. The result? Those once-overlooked “front and center” pad sites and strip centers are suddenly the belle of the ball. The downside is paying too much on the buy side for the dirt for aggressively low caps rates. But all I can say for the rental rates that I’m seeing is “Wow.” Restaurants still lead In Atlanta’s retail market, restaurants continue to be the leading driver of leasing activity. According to observations, excluding junior box space, food-and-beverage deals made…

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Atlanta Industrial Is Cooling and Consolidating, But Is Still Strategically Strong

John Nelson — Mon, 10 Nov 2025 12:40:00 +0000

After several years of breakneck growth, Atlanta’s industrial sector has clearly shifted into a mid-cycle recalibration. Vacancy has climbed to 8.4 percent, well above the 10-year average of 5.8 percent, as a record wave of big-box deliveries collides with softer demand. Twelve-month net absorption turned negative for the first time since 2011, dropping 453,000 square feet despite 14.9 million square feet of new deliveries over the past year. Developers and tenants alike are adjusting, but the region’s logistics advantages and diverse economy keep long-term fundamentals intact. Supply and demand The pandemic-era surge of speculative construction has decisively slowed. Construction starts have fallen roughly 70 percent from the five-year average, leaving 16.3 million square feet under construction, with just 25 percent available — down from 60 percent a year ago. Most large projects are now data centers, such as a 1.5 million-square-foot QTS facility in Fayette/Coweta County and a 1.2 million-square-foot Microsoft data center near Hartsfield-Jackson Atlanta International Airport. Vacancy is rising fastest in submarkets that saw heavy new supply. Kennesaw/Acworth, for example, has added over 9 million square feet since 2023 and now posts about 13 percent availability for buildings sized 200,000 square feet and larger. Sublease availability has grown…

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Pause or Prime Time? Atlanta’s Office Sector Is in Transition

John Nelson — Mon, 03 Nov 2025 12:15:00 +0000

Atlanta’s commercial office market is at a pivotal moment, caught between signs of stabilization and the lingering effects of a post-pandemic reset. Vacancy remains elevated, absorption is improving and tenant preferences continue to evolve — but fundamentals are beginning to shift as the market adjusts to the new workplace. Signs of a bottom? Hybrid work models, space optimization strategies and cautious expansions have elevated metro Atlanta’s office vacancy rates. Direct vacancy rates surpassed 24 percent for the first time and are hovering near all-time highs. Meanwhile, sublease availabilities have declined over 25 percent from their peak in 2023, and quality space remains difficult to find. The slowing pace of vacancy increases suggests the market may be nearing a turning point after recording negative annual absorption in four of the past five years. Net absorption, a key indicator for overall office sector health, totals negative 438,000 square feet, according to Colliers’ second-quarter 2025 report. While still in the red, this marks a significant improvement over previous years. Recent leasing activity suggests even more positive movement in the second half of the year, indicating that tenant departures are tapering and space givebacks are moderating. Leasing: quality vs. quantity Despite economic headwinds, leasing…

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Orlando’s Suburbs Show Strength With Big Office Deals, Activity

John Nelson — Mon, 27 Oct 2025 11:31:00 +0000

In the fourth quarter of 2024, the Orlando office market had the first quarter of positive absorption in four years, according to a recent Colliers market report. The market, like many across the nation, has navigated a period of recalibration in the wake of the pandemic and evolving work trends. Yet, a shift in tenant activity has signaled renewed leasing demand across the office landscape. In the fourth quarter, net absorption in the Orlando office market reached a positive 95,843 square feet. This is a significant improvement compared to the same period in 2023, which had a negative absorption of 297,714 square feet. Interestingly, it is the submarkets outside of Orlando’s central business district (CBD) that are shining. This is evident in two recent deals that are having a profound impact on the market. In December, we represented the seller when Charles Schwab purchased the Maitland Summit Office Park for $122 million. This was the largest office deal in Central Florida since 2021 and removed 500,000 square feet of Class A office space from the Maitland submarket, which is about 10 miles north of downtown Orlando. Around the same time, Mitsubishi signed a lease for 109,000 square feet in Lake…

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Louisville’s Office Evolution Includes New Deals, Conversions

John Nelson — Mon, 20 Oct 2025 11:24:00 +0000

Louisville is a city full of history, charm and grit. We’re the birthplace of Muhammad Ali, home to the Kentucky Derby and the heart of America’s bourbon culture. As our city has grown, so have its business opportunities. Louisville’s geographic location, its logistics network and its diversified economy have attracted significant investment from global businesses to set down roots in recent years. In 2023, Louisville was named as a top 5 U.S. metro for economic development by Site Selection magazine with over $1 billion in capital investment and 2,300 new jobs that year alone. Louisville’s overall commercial real estate market has grown along with the population, but the office market has had a softer rebound following the pandemic than other markets nationally. Office overview In second-quarter 2025, Louisville had over 235,000 square feet of positive office leasing activity that was negated by over 256,000 square feet of negative net absorption, primarily due to large move-outs from office users in the city’s suburban submarkets. Leasing activity in Louisville’s Central Business District (CBD) has rebounded. In the second quarter, the submarket saw over 6,100 square feet of net positive absorption from Class A leasing activity, including the Jefferson County Sheriff’s Office lease…

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Louisville’s Industrial Market: Steady, Sturdy and Poised for Growth

John Nelson — Mon, 13 Oct 2025 11:20:00 +0000

Louisville’s industrial market stands out as a steady force, resisting the fluctuations often seen in surrounding Midwest cities such as Cincinnati, Columbus and St. Louis. Midyear figures show Louisville’s year-over-year rent growth exceeding the national percentage and its vacancy rate 340 basis points below the national rate, both signs of a healthy market. Additionally, Louisville’s recognition in national trade publications and recent announcements of General Electric/Haier and Ford’s electric vehicle (EV) investment at its Louisville Assembly Plant suggests positive future job growth. A sturdy foundation Louisville’s centralized location has helped secure its place as a major logistical powerhouse and develop relationships with major industrial business players such as UPS, Ford and General Electric. UPS announced its first expansion into Louisville in 1981 and has continued to grow its operations since, including the recently opened $100 million automated medical labs shipping facility. Ford also continues to invest in Louisville, recently leasing a 567,433-square-foot facility in Southern Indiana and a 426,300-square-foot facility in Louisville’s Bullitt County submarket just south of Louisville Muhammad Ali International Airport. Additionally, General Electric/Haier will move washer/dryer manufacturing processes to Louisville, creating 800 new jobs and confirming Haier’s Louisville manufacturing operations as its global hub. A resilient market…

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Grocery Anchors Continue to Fuel Louisville’s Retail Market

John Nelson — Mon, 06 Oct 2025 11:13:00 +0000

Louisville’s retail market continues to show strength in 2025, with grocery anchors driving much of the momentum. Despite national headwinds such as moderating rent growth and elevated construction costs, the metro has proven resilient, posting a vacancy rate of just 3.5 percent, outperforming the national benchmark of 4.8 percent, according to CoStar Group. Asking rents averaged $17.42 per square foot, reflecting steady demand across the region. At the center of this activity are grocers like Kroger, Publix and BJ’s Wholesale Club, each reshaping Louisville’s retail landscape in unique ways. Kroger is deepening its footprint with multiple new stores, including a 123,000-square-foot location under construction on Beulah Church Road that is scheduled to open in 2026. Publix, one of the most closely watched entrants to the Kentucky market, has expanded aggressively after opening its first store, securing 60,000 square feet at Blankenbaker Plaza and 56,000 square feet at Prospect Point. BJ’s Wholesale Club has adopted a redevelopment approach, razing the former Sears building at Jefferson Mall to deliver a 104,000-square-foot store that opened earlier this year. Collectively, these projects underscore the draw of essential, needs-based retail while fueling complementary leasing activity in their surrounding trade areas. Concepts gaining ground That momentum…

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Richmond’s Mixed-Use Boom Fuels the City’s Retail Market

John Nelson — Mon, 29 Sep 2025 12:00:00 +0000

The Richmond retail market has maintained strong fundamentals as the city’s diverse economic base and solid residential growth continue to fuel a historically low vacancy rate. Demand is very strong from a variety of uses, ranging from soft goods and restaurants to entertainment and personal services such as med spas and boutique fitness. The coffee segment, long dominated by Starbucks Coffee, has seen a number of new competitors enter the market. Dunkin’ has been on a strong growth cycle, and more recently Dutch Bros Coffee, Scooters Coffee, Foxtail Coffee and PJs Coffee have been actively looking for sites. 7 Brew has been particularly active, opening two new stores and filling their pipeline with additional sites. However, the real story in Richmond is the number of mixed-use projects that are in the planning stages or have broken ground, with virtually all of them anchored by a grocery store. In Chesterfield County, the first phase of development for Springline at District 60 is near completion. Located at the intersection of Midlothian Turnpike and Chippenham Parkway, work was recently completed on a new 150,000-square-foot office building anchored by Timmons Group, while the 298-unit apartment building, The James at Springline, is nearing completion.…

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Conversions, Return to Office Movement Help Propel Richmond’s Office Market

John Nelson — Mon, 22 Sep 2025 12:00:00 +0000

Richmond’s office market stands out as a resilient post-pandemic performer, with strong relocation activity, a notably low vacancy rate driven by steady return-to-office trends and dynamic development, including office-to-residential conversions that are reshaping both the office and retail landscapes. Relocations have outpaced renewals in 2025, accounting for 78 percent of leases signed so far this year — the highest ratio of new leases to renewals since before 2019. This marks an increase even over the past few years, which were already remarkably healthy. Richmond’s overall leasing activity remains stable, escaping the post-pandemic decline that crippled many other markets. The region has also recorded positive absorption for four consecutive quarters, signaling steadily increasing demand following occupancy losses from 2021 through 2023. Return-to-office initiatives have reignited space needs that have been put on hold for months, or even years. As a result, average daily employee attendance in downtown Richmond has risen from 2,200 in 2022 to more than 3,000 in 2025, according to Placer.ai data, analyzed by CBRE Research. While this still trails pre-COVID levels by about 43 percent, it reflects progress toward restoring a balanced office market. Class A and B properties have repeatedly shown positive net absorption when broken down…

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