The retail market in the Southeast has remained stable during the past couple of years, with vacancy outperforming the nation and asking rents rising at a significant clip. In particular, the Atlanta retail market continued to buck national trends with declining vacancy and increased average rental rates in the fourth quarter. Year-to-date net absorption was 4.2 million square feet, and as a result, vacancy continued to decrease from greater than 6 percent in 2016 to 5.3 percent as of the fourth quarter.
Atlanta’s retail rental rates are re-approaching former highs in the last decade, while vacancy has steadily been declining for the past six years. The market’s performance going forward will rely heavily on the local economy, which is posting positive employment gains, declining unemployment, and attracting major businesses to the metro area. Check out the infographic below from our Atlanta Research team, which highlights the performance of retail throughout the Southeast: