Bright and early on St. Patrick’s Day, Cushman & Wakefield’s Atlanta office held its second annual State of Real Estate event at the Atlanta History Center.
Kevin Thorpe, Chief Economist and Global Head of Research, was the keynote speaker and provided an overview on U.S. economic trends as well as an Atlanta overview and outlook. In Atlanta, employment continues to improve, and the city was the No. 4 market for job growth in January. Additionally, office fundamentals are the tightest on record with a current vacancy rate of 15.9 percent, he said. Office rents are growing, but the city still offers a nice spread compared to gateway cities, which should draw additional companies to the city in 2017. Atlanta’s industrial market is also very strong, and ranks No. 4 when looking at expansion from 2011 to 2016. Although the development pipeline is robust, demand for new industrial product will be there.
David Smith, Senior Director of Occupier Research, also gave an update on occupier trends, sharing information about Atlanta’s labor markets and demographics. Overall, the U.S. labor market continues to tighten, with the jobs-opening rate currently at 3.6 percent, he said. Therefore, companies must be competitive and create desirable workspaces to recruit and retain top talent. In order to secure an attractive location but keep costs down, companies should consider Class B space in hot submarkets like Buckhead and Midtown.
For more takeaways from the event, visit our Twitter account: twitter.com/cushwakeatl