Atlanta by the Numbers
By Audrey Frey, Senior Director, Sales Management at CBRE
2017 was a great year for commercial real estate in Atlanta. While we all love to tell this story, it’s always easier to talk about how great it really was when there are numbers to back it up – and there are lots of them!
Industrial & Logistics
Atlanta has been and continues to be a primary logistics market, handling the bulk of goods distribution in the country. One report shows that supply-chain modernization in the city has led to a warehouse development boom with rents increasing by more than 32% in the past five years and vacancy dropping to 7.9% compared to 12.4% in 2012.
While we’re talking about logistics, the best part is that Atlanta doesn’t only stand out in the U.S., it also outperforms many logistics hubs oversees. The U.S. is home to five of the 10 fastest-growing logistics hub markets and Atlanta is one of them, ranking #7 on a list of the fastest growing rent markets in the world. With a rent increase by 9.2% year-over-year, Atlanta plays in the same level field as coastal hubs like Seattle and Pennsylvania and leaves behind many Asian Pacific markets.
We can’t talk about Atlanta’s office market without mentioning the effects the ever-growing technology sector has on it. Tech companies are looking for office space in cities with a large and qualified labor pool. Thankfully, Atlanta is one of those cities, climbing the ranks in this year’s Scoring Tech Talent report. Atlanta rose four spots to the fifth in the report that measures each market’s depth, vitality and attractiveness to companies seeking tech talent and to tech workers seeking employment. As a result, Atlanta also ranked third on a list sorting markets by rising office rents. Spurred by a 12% growth rate in high-tech jobs, the city achieved double-digit rent growth (18%) over the past two years, outpacing the national average of 1.6%.
While the city is thriving, Atlanta’s suburban submarkets are not far behind. What makes a suburban submarket attractive to companies is the live-work-play factor it offers. A 2017 Live-Work-Play Index ranked Atlanta as one of the top markets for emerging and established suburban submarkets. Naming North Fulton as an established and Northwest, Northeast, and Central Perimeter as emerging submarkets, the index scores for these markets far surpass the national average, resulting in strong tenant demand and rising office rents across the board.
Last but not least: The concept of energy efficiency and sustainability in buildings has taken a firm hold in Atlanta, keeping in mind strong tenant and investor interest in constructing, operating, and occupying better buildings. In terms of green building adoption, Atlanta ranks in the Top 3 nationwide, right behind Chicago and San Francisco. That’s something to brag about!
Now what do all these great numbers lead to? That’s right! Investor interest.
In a survey capturing the investment sentiment of nearly 1,000 investors, Atlanta ranked in the Top 5. As one of the metros in the Americas found most attractive for property investment purchase, Atlanta only placed behind Los Angeles, Dallas, New York, and Washington, D.C.
With that being said, I wish you all a happy new year. May the success story that is Atlanta continue in 2018!
Serving as the CBRE Senior Director for Sales Management in Atlanta, Audrey Frey works closely
with both local and national executive leadership to grow CBRE’s market share and portfolio
success in the Atlanta metro area in office, retail and industrial spaces. Responsible for driving the
success of nearly 50 brokerage professionals, Audrey is tasked with streamlining the sales
process from beginning to end following the Finishing First model.
Subscribe today and get future blog posts your email.