Lack of space in premium areas push Atlanta’s retail rents to highest levels
Retail rents have reached previously unseen levels in Atlanta’s rapidly re-urbanizing neighborhoods. A ‘flight to quality’ has existed for years, which has led to a lack of available space in many quality submarkets. Landlords are now capitalizing on this competition for space with increased rents and fewer concessions. In high-end areas such as Buckhead and Midtown, it’s not uncommon for typical shop space rents to exceed $40 per sq. ft. on a triple net basis. Operating expenses in these high-end projects are also breaking records with many exceeding $12 per sq. ft. Absorption has underperformed in the last two years due to a large number of suburban big box closures in the market.