Marcus & Millichap Bullish on Area's Retail

ATLANTA-A Chamber of Commerce copywriter couldn’t have penned a rosier scenario, but John M. Leonard, regional manager of Marcus & Millichap’s local office, says he has the statistics to back up his predictions that the area’s retail market will experience a robust season in 2004 in all categories.

In his periodic market report, Leonard predicts existing 9.5% vacancies will drop to 9% by year-end; rents will rise; retailers will expand; and investors will continue to fight for top-tier properties at high-end prices. The M&M broker expects all this to happen even as developers complete three million sf of new product this year, up from 2.5 million sf in 2003. “The arrival of new retail space this year is unlikely to have a negative impact on vacancy as the majority of the space is pre-leased,” Leonard says. “The region’s continued population and employment expansion has many retailers eyeing the metro area for additional outlets.”

He says Atlanta’s retail scene “will continue to undergo transformation in 2004″ as the city welcomes the first retail component of the much-heralded, $2-billion, 138-acre Atlantic Station project in the Midtown submarket. Developers are plan to complete several retail projects in the fast-growing suburbs.