Atlanta Retail Sector Slows Due to More Conservative Lending

ATLANTA, GA — A cooling economy, combined with rising instability in the housing market and continued development activity, will cause Atlanta’s retail market conditions to soften through the rest of the year, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The metro’s diverse employment case will post healthy job growth this year, as losses in financial services and manufacturing will be offset by additions in the educational and health services and information sectors.

“Fast-food properties are expected to remain the single-tenant asset of choice for investors in Atlanta,” says John Leonard (middle right photo), regional manager of the Atlanta office of Marcus & Millichap. “Cap rates for all single-tenant assets will likely continue to be fairly stable this year despite the drop off in velocity.”

Following are some of the most significant aspects of the Atlanta Retail Research Report:

· Employers are expected to expand payrolls by 22,200 positions this year, a 0.9 percent increase.
· Developers are slated to deliver 4.9 million square feet to the market this year.
· Vacancy is forecast to end the year at 9.7 percent.
· Asking rents are predicted to advance 1.1 percent to $17.56 per square foot.
· Effective rents will inch up 0.5 percent to $15.87 per square foot.

For a copy of the complete Atlanta Retail Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso
Communications Department
(925) 953-1716