Metro Atlanta added approximately 24,200 new jobs in August according to the most recent jobs report from the Bureau of Labor Statistics. Currently, Atlanta has added back nearly 60% of the jobs lost during the initial pandemic shutdown. Local job gains have been largely reflective of the spread of the virus in the area with a slow down in jobs added during June and July when Georgia became a national hotspot for the virus.
Now, with cases declining, job growth is once again picking up. The trade, transportation, and utilities sectors posted the strongest gains in August while leisure and hospitality continue to struggle. The impact of these job numbers are resulting in notable trends within the commercial real estate industry in Atlanta. The Atlanta multifamily market has improved recently while the office sector is starting to show the effects of the pandemic. The industrial market has been the bright spot and retail has struggled in Atlanta as well as nationwide.
Industrial
Atlanta’s industrial market continues to be a bright spot in the Atlanta commercial real estate market with vacancy rates declining from the previous quarter and demand outpacing supply. Leasing activity was strong during the summer months as tenants showed confidence in signing new deals for added industrial space. Major move-ins are expected in the fourth quarter which should help to hold off supply side pressure.
Multifamily
Atlanta’s multifamily market has proven resilient so far in the midst of the pandemic and all key indicators showed growth in the third quarter. Leasing activity has picked up over the last few months helping to increase rents in more affordable suburban locations. And while the high-end urban market is struggling to maintain rents the metro market as a whole is outperforming the national benchmark for rent growth.
Office
Wework’s CEO recently promoted the new trend of hub-and-spoke office systems and is now opening another center in the Atlanta suburb of Decatur. CEO Sandeep Mathrani said a hub-and-spoke office plan with a central headquarters and multiple locations would promote high levels of productivity and innovation which has been challenging since people started working from home in high numbers since the start of the pandemic.
“You want a hub for collaboration purposes, but you need a spoke system for where people live,” said Mathrani.
Errol Williams, vice president of WeWork’s Atlantic region, said, “We were drawn to Decatur’s dynamic environment from day one, and we look forward to providing the city’s purpose-driven workforce with flexible workspace solutions that will allow companies to pivot and grow with ease.”
Retail
The coronavirus pandemic has impacted Georgia’s retail sector more than any other type of commercial real estate. An expected wave of permanent retail closures will continue to have a negative impact in the coming months. Georgia has not seen the current level of vacancies since the second quarter of 2011 when the economy was still recovering from the Great Recession and currently the forecasts for the immediate future show many more negative months for this downturn.
We Can Help
Whether you’re looking to lease, buy, or sell commercial property, now is still the time to do it in Atlanta. The Meridian Real Estate Group has been assisting commercial clients for well over a decade and would love the privilege of earning your business. Our goal is not just to help our clients with a transaction, but to support the building of financial legacies through real estate. Call us today at 678-631-1723 or visit us online at www.themeridianway.com. We look forward to serving you.