As many core fundamentals struggle for retail in Atlanta, the sector is seeing nothing short of investment interest. Sales volume was over $600 million in the fourth quarter, while the trailing fourth quarter total reached its highest point since the first quarter of 2023, according to a market report from Colliers.
By square foot, Nuveen made the largest acquisition, at $557 square foot for a property in Westside Village. The next largest was
Highline Real Estate Capital, which paid $143 per square foot for an asset in Salem Gate, followed by The Ardent Companies, which bought a property in Perimeter Pointe for $133 per square foot.
Net absorption, while still negative, improved to -98,000 square feet in the fourth quarter compared with -404,900 square feet in the same period a year ago.
"Demand remains robust for well-located, experiential, and mixed-use retail formats," said Colliers.
That all comes as other fundamentals trended the wrong way but remained stable. For example, rents were down by just two cents per square foot to $19.18. Vacancy spiked by 90 basis points to 5.3 percent.
Also, construction is starting to pick up again. More than 28,000 square feet of retail product was underway compared with nothing seen at the end of 2024. Meanwhile, supply slowed to 12,600 square feet versus 21,000 square feet.
But overall, Colliers says that the fundamentals are "stable," with development remaining constrained with favorable demographic trends.
"Atlanta's retail sector is well positioned for continued investment activity in 2026, as improving capital markets and stable underlying fundamentals continue to attract investors," Colliers said.
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