ATLANTA, GA — Despite projections for slower job losses and decreased construction activity, retail vacancy in Atlanta will rise this year due to weaker consumer spending, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.Employers will continue to cut payrolls through most of 2009, leading to the second-largest annual reduction in employment since 2000.
“In the investment market, retail activity is expected to stay light, with most interest focused on national credit, single-tenant properties,” says John Leonard,(top right photo) regional manager of the Atlanta office of Marcus & Millichap.
“Multi-tenant activity remains constrained as owners opt to strengthen operations to avoid selling at the deep discounts some buyers are demanding.”
Following are some of the most significant aspects of the Atlanta Retail Research Report:
· In 2009, employers are expected to cut 52,000 jobs for a 2.1 percent decline, compared with a loss of nearly 93,000 positions last year.
· Developers are forecast to complete 3.7 million square feet this year, down from 4.5 million square feet in 2008. Approximately 1.1 million square feet will be delivered in the Sandy Springs/North Fulton submarket.
· Projected negative net absorption of approximately 2.8 million square feet will cause a 280 basis point rise in vacancy by year end to 12.6 percent.
· Current weakness in the local economy will moderate retail space demand, resulting in a 3.5 percent drop in asking rents to $16.84 per square foot. Effective rents are projected to fall 4.5 percent this year to $15.02 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 CorsoCommunications Department(925) 953-1716
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