There are a lot of positive elements taking place in the Atlanta retail market – occupancy is at its highest in seven years, new construction is increasing and the average rental rate remains low. What’s more, analysts anticipate the growth to continue with the overall occupancy rate increasing through the end of 2015.
While high occupancy levels and low rental rates seem to be contradictory, no one is complaining about the impact it’s having in the industry. Driving the major growth in the retail market is the increase in new apartment developments in-town and suburban mixed-use developments such as the Avalon in Alpharetta.
However, the average rental rate remains low due to the abundance of outdated properties in outlying areas that are unattractive to retailers and thus difficult to lease. Retailers realize slightly higher than average rental rates in urban markets but not as high as it could be without the vacancy in rural markets.
While this news is positive and developers are hopeful it continues, Atlanta is not unlike other markets where the greatest challenge continues to be from e-commerce retailers. To compete with the convenience of on-line shopping, developers will need to be creative in their approach in creating destinations for the brick and mortar retailers to attract consumers.
McWhirter Realty Partners helps companies find current retail pace but also identifies, develops and manages new construction opportunities. Contact us today or visit our listing page for more information.