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September 20, 2021

Retail Rebounds In Atlanta, But Headwinds Remain

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Atlanta's retail market shifted from despair to elation in a single quarter as retailers from April to June soaked up nearly all the square footage abandoned during the height of the coronavirus pandemic.

The leasing rebound is indicative of Metro Atlanta's burgeoning population growth and strong economy coming out of the pandemic-induced recession, retail real estate experts told Bisnow. But many say they aren't holding their breath that the market will remain this strong throughout the rest of the year.

Retail Rebounds In Atlanta, But Headwinds Remain

Retailers leased 1M SF more than they emptied — a dynamic known as positive net absorption in the commercial real estate industry — between April and June of this year, according to a report by the brokerage firm Lee & Associates. From July of 2020 to March of this year,…

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As Headwinds Linger, The Construction Sector’s Recovery Is Slowing

 

The U.S. construction sector enjoyed a robust period of recovery in the spring months of 2021, buoyed by positive economic trends and growing industry confidence.

It was a welcome change from 2020, which saw many projects stall or cancel.

But experts say momentum has slowed over the past few months, reflecting the ongoing pressures of elevated material costs, extended material delivery delays and a labor shortage, as well as a reduction in demand for some types of real estate.

While there’s still a healthy pipeline of nonresidential projects starting or recommencing planning and design work, fewer projects are actually breaking ground — a trend that may continue through the end of 2021 and into the first half of 2022.

“I think that the drag has certainly kicked into gear here, as the sector faces a shortfall of labor, shortfall of material and, of course, higher prices in combination with still fairly subdued levels of demand,” Dodge Data & Analytics Chief Economist Richard Branch said.

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