Retail investment sales in Atlanta are now at the highest point since 2022, as investors flock to the area's rapidly growing population.
Colliers did not reveal specific sales stats in its third-quarter market analysis report — but it profiled a number of major deals that help drive the activity.
"This uptick was driven by several high-profile transactions, including: Krog Street Market, AMC in Kennesaw and Avenue West Cobb," Colliers wrote.
"These transactions underscore broader investment trends for landmark mixed-use destinations, entertainment-anchored assets, and suburban lifestyle centers."
The strong results come as Atlanta's population nears 6.5 million residents and household earnings average over $91,000. Both of these categories are growing past the national averages, showing resiliency even in an economy filled with headwinds.
"This expansion has fueled a steady rise in consumer spending, particularly in high-traffic corridors and suburban nodes," Colliers explained.
Overall, in Atlanta, consumer spending spiked by six percent year-over-year. And some areas like Eastside Beltline showed even more resilience, enjoying a 12 percent surge in activity.
Another thing that helps is the limited development. Just 75,000 square feet was underway, which is down from the 101,400 in the previous three months, but up from nothing under construction in the 12 months prior.
Although demand remains negative — it's continuing to narrow. Just -9,400 square feet of space was absorbed in the third quarter, well below the -269,700 posted a year ago.
However, some other fundamentals struggled. Vacancy jumped by 90 basis points to 5.3 percent and average leasing rates dipped by three percent to $18.51 per square foot. Colliers noted that a headwind Atlanta's retail sector faces is vacancy on big box assets and struggles over lower quality assets, as Class A rents were up by 2.1 percent.
But overall, assuming interest rates fall and demand remains strong, Colliers expects "continued investment growth through the remainder of 2025."
Also, the brokerage noted that vacancies will provide an opportunity for retailers to expand, but at the same time, inflationary pressures could present a challenge for brands to pay higher rents in the market.
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