We’re already past the three-quarter mark of 2021 and heading into the end of the year. Despite an unpredictable past couple of years, the Atlanta commercial real estate market continues to be on solid footing. Read on for my thoughts and the status of Atlanta’s industrial, retail and multifamily residential CRE sectors following the close of Q3 2021.


The Atlanta area continues to be the major logistics hub for the Southeastern United States and its booming population. Hartsfield- Jackson International Airport, CXS and Norfolk Southern Railroad Intermodal facilities, the convergence of three Interstate Highways and the ports of Savannah and Charleston provide great infrastructure for this sector. The explosive expansion of e-commerce, in large part due to COVID-19, is also one of the many big drivers of the Atlanta industrial market.

The Atlanta Industrial Market, which – according to CoStar – has more than 765 million square feet of space, had a very low vacancy rate of 3.8% at the end of Q3 2021. Over the past year, about 30 million square feet of space was absorbed with an average rental rate of just over $7 per square foot.


The COVID-19 pandemic has been challenging for retailers, especially restaurant operators. However, well located grocery-anchored centers are performing well. Older regional malls are being redeveloped as office, self-storage, distribution and residential projects.

According to CoStar, the Atlanta Retail Market is comprised of 363,718,510 square feet of space with a vacancy rate of 4.7%. Over the past 12 months, about 3.4 million square feet of space was absorbed at an average market rent of $19.21 per square feet. With a regional population of six million and growing, the future of retail is bright despite some market rumblings.

Multifamily Residential

The Atlanta metropolitan area has 467,221 units in the Multifamily Residential Market according to CoStar. The average vacancy rate is 5.3% and the average rental rate is $1,572. Over the past year, 20,709 units were absorbed, which was primarily being driven by both Baby Boomers and Millennials. Many Boomers are downsizing or are choosing the flexibility of renting rather than buying. On the other hand, the prohibitive cost of single-family homes is putting homeownership out of reach for many Millennials. For example, the Average Sales Price of a single-family home in Intown Atlanta is $427,000 with some neighborhoods averaging well over $1 million. Even with historically low mortgage interest rates, due to these prices, many young people will continue to rent rather than buy.

I hope this was a helpful overview of the status of Atlanta CRE at this moment in time. Please reach out to me with any questions at wtadams@adamscre.com. And be on the lookout for my next post, which will cover the Atlanta’s Office, Hospitality and Land Markets.