- The nearly 1.9M SF of space absorbed by the Atlanta retail market YTD has surpassed the total absorption of 2016 and is on pace to exceed the 2.3M absorbed in 2015. The high water mark of this cycle will continue to be 2014 when over 3M SF was absorbed.
- The vacancy rate has decreased for the 18th straight quarter, down to 8%. Atlanta’s vacancy rate has not been below 8% since 2005.
- The average rent in Atlanta is above $13/SF for the first time in 3 years.
- Macroeconomic conditions continue to be positive as Atlanta’s unemployment rate is 4.6% and wage growth is at 3.4%.
Atlanta Industrial Market
The aftermath of the Amazon and Whole Foods deal has led to decisive actions from other grocers in the Atlanta area. Target announced in September its new next-day delivery service, Target Restock, was coming to Atlanta. Aldi has taken a similar route and partnered with Instacart to serve its 20 Atlanta locations. Walmart, the nation’s largest grocer, announced after closing 150 locations last year it would limit store growth moving forward to cut costs; all while also partnering with Google Express to make its products available online outside of Walmart’s website for the first time in the U.S. In other grocery news Lidl has opened its first store in Georgia and Sprouts has opened its 16th store in metro Atlanta.