Investors continue to be attracted to Atlanta, due in part to the area's continued economic expansion, evidenced by the anticipated job growth in nearly every sector, according to a third quarter retail research report by Marcus & Millichap Real Estate Investment Services.
According to a Colliers Spectrum Cauble fall retail market report, Atlanta had experienced $2.41 billion in shopping center sales year-to-date. This compares with a total of $1.26 billion in sales for 2006. In 2007, the average price per sf for the sales was $140 and the average median cap rate was 6.6%. This compares with an average price of $154 per sf and median cap rate of 7.34% in 2006.
"The investment outlook for Atlanta retail properties is positive, providing investors with healthy initial yields and prospects for long-term future revenue growth," says Marcus & Millichap Atlanta office regional manager John Leonard.
Among other findings in the Marcus & Millichap report include that job growth is expected to exceed last year's pace of 1.9% with local employers forecast to add 42,000 jobs by year end, reflecting an increase of 1.7%. Builders are expected to deliver 5.2 million sf by the end of 2007 and vacancy is forecasted to be 8.2%. Asking rents are expected to rise 3.6% by the end of the year to $17.86 per sf, while effective rents are forecast to gain 3.5% to $16.10 per sf.
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