Negative Net Absorption Pushes Retail Vacancy Higher in Atlanta

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

Marcus & Millichap Sells $16.5M BJ's Wholesale Club in Woodstock, GA

WOODSTOCK, GA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of a 115,396-square foot BJ’s Wholesale Club in Woodstock. (top right photo)

The sales price of $16.05 million represents $139 per square foot.

Sonny Molloy, an associate vice president investments in Marcus & Millichap’s Atlanta office, represented the seller, a private investor based in Boca Raton, Fla.

Jason Vitorino, an associate vice president investments in the firm’s Dallas office, and Philip Levy, a senior associate, also based in Dallas, represented the buyer.

“Woodstock is the 10th-fastest growing suburb in United States,” says Molloy. “Due to strong demographics, growth of the Woodstock market and consumer desire for wholesale products as a means of hedging these inflationary times, BJ’s Wholesale Club should remain profitable and highly successful.”

Located at 105 Long Drive, the property is situated immediately off Interstate 575 with two main access points, including a four-way lighted intersection off State Route 92.

BJ’s Wholesale Club benefits from its prime location near a Super Target Power Center, Wal-Mart, Home Depot, Lowe’s, Ingles, PetSmart, Starbucks, CVS, Old Navy and Kohl’s. A His Hands Church and a Dixie Motor Speedway also serve the property as large traffic generators.

In 2007, the population within five miles of the property was approximately161,890, which represented a 25 percent increase from 2000. It is expected that this number will increase another 12 percent in the next five years.

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