NAR Commercial Real Estate Metro Market Report | 2022.Q1
Core-Based Statistical Area Code: 12060
The Atlanta-Sandy Springs-Roswell, GA commercial real estate market is stronger compared to the overall U.S. market.
NAR Commercial Real Estate Market Conditions Index* 68.0
Overall economic conditions are stronger than nationally.
The apartment property market is about the same than nationally.
The office property market is not as strong than nationally.
The industrial property market is stronger than nationally.
The retail property market is stronger than nationally.
The hotel/lodging property market is about the same than nationally.
I. Economic and Demographic
Economic 2022 Q1 (March) 2021 Q4 (Dec) 2021 Q1 (March) 2022 Q1 (March) 2021 Q4 (Dec) 2021 Q1 (March)
Total non-farm employment ('000) 2,937 2,917 2,759 149,912 150,352 143,308
Y/Y chg.in nonfarm payroll employment ('000) 177 151 (96) 6,604 6,747 (6,644)
Y/Y % chg. in nonfarm payroll employment 6.4% 5.4% -3.4% 4.6% 4.7% -4.4%
Unemployment rate (%) 3.2% 3.3% 4.6% 3.6% 3.9% 6.0%
Average weekly wages $1,111 $1,087 $1,031 $1,099 $1,092 $1,049
Wage growth, year-over-year 7.7% 1.1% 1.6% 4.7% 5.2% 6.9%
2020 2019 2018 2020 2019 2018
GDP growth (%) -4.3% 4.3% 3.7% -3.4% 2.3% 2.9%
Demographic 2020 2019 2018 2020 2019 2018
Net domestic migration ('000) 23.6 31.8 26.7 0 0 0
Population ('000) 6,101 6,027 5,951 331,501 328,330 326,838
Population growth (%) 1.23% 1.27% 1.27% 0.97% 0.46% 0.53%
Demand indicators 2022 Q1 2021 Q4 2021 Q1 2022 Q1 2021 Q4 2021 Q1
Vacancy rate 6.5% 5.9% 7.4% 4.9% 4.8% 6.0%
Absorption of units in past 12 months 9,891 16,728 20,324 568,362 697,378 498,721
Absorption in past 12 months as % of inventory 2.3% 3.8% 4.7% 3.3% 4.1% 3.0%
Effective rent per unit $1,597 $1,575 $1,362 $1,578 $1,543 $1,406
Effective rent per unit, y/y % chg 17.3% 19.9% 7.0% 12.2% 12.2% 1.8%
Rent as a percent of 2-person annual wage income 16.5% 16.7% 15.2% 16.5% 16.3% 15.4%
Supply indicators
Inventory 438,998 440,150 429,110 17,251,546 17,194,020 16,685,925
Net delivered units in past 12 months 6,185 7,848 14,585 387,022 391,271 417,342
Net delivered units, as % of inventory 1.4% 1.8% 3.4% 2.2% 2.3% 2.5%
Units under construction 24,416 22,301 15,536 774,864 744,997 732,144
Units under construction, as % of inventory 5.6% 5.1% 3.6% 4.5% 4.3% 4.4%
Ratio of jobs created to net delivered units 28.7 19.2 (6.6) 17.1 17.2 (15.9)
(as of latest available month of the quarter)
Sales transactions
Total investment acquisitions (in million $) $2,915 $8,610 $2,332 $50,395 $113,844 $30,199 Sales transactions are not rising as fast than nationally
Transaction sales price per unit $199,710 $216,208 $147,115 $220,078 $227,367 $157,676 Prices are not rising as fast than nationally
Demand indicators 2022 Q1 2021 Q4 2021 Q1 2022 Q1 2021 Q4 2021 Q1
Vacancy rate 14.2% 14.0% 14.1% 12.2% 12.1% 11.7%
Absorption in sq.ft.
over the quarter (425,698) 741,309 (3,086,053) 3,410,230 11,127,334 (43,926,356) Absorption in sq.ft. over 12 months 2,777,771 117,416 (5,468,156) 5,610,472 (41,726,112) (119,807,672)
Absorption in past 12 months as % of inventory 1.0% 0.0% -1.9% 0.1% -0.6% -1.7%
Market rent per sq.ft. $26.8 $26.7 $26.5 $34.7 $34.6 $34.4
Market rent growth, y/y % chg. 1.3% 1.4% 0.8% 0.8% 0.4% -2.1%
Y/Y chg.in professional/business services jobs ('000) 46.9 32.4 (10.6) 1,153 1,161 (283)
(as of latest available month of the quarter)
Supply indicators
Inventory in sq. ft. 285,091,424 285,508,128 282,304,672 7,256,351,232 7,252,931,072 7,250,434,560
Net delivered over 12 months, in sq.ft. 3,824,441 4,605,911 2,463,007 54,741,303 57,123,296 47,997,877
Net delivered units, as % of inventory 1.3% 1.6% 0.9% 0.8% 0.8% 0.7%
Under construction in sq.ft. 5,155,064 5,128,890 7,198,953 143,665,184 143,194,512 153,944,000
Under construction, as % of inventory 1.8% 1.8% 2.6% 2.0% 2.0% 2.1%
Sales transactions
Total investment acquisitions (in million $) $1,065 $1,347 $569 $26,711 $35,335 $17,487 Sales transactions are rising faster than nationally
Transaction sa
le price per sq.ft.
$226 $215 $167 $324 $295 $325 Prices are rising faster nationally- Some data may not be available for the quarter
The area has stronger absorption than nationally
Atlanta-Sandy Springs-Roswell, GA
Population is growing faster than nationally
More jobs per delivered units than nationally
The area has a higher vacancy rate than nationally
Rents are rising faster than nationally
Area is experiencing net domestic in-migration
Job creation is stronger than nationally
Unemployment rate is lower than nationally
Wages are rising faster than nationally
Construction is stronger than nationally
Cap rates are lower than nationally
Atlanta-Sandy Springs-Roswell, GA
More delivered space relative to inventory than nationally
Construction activity is slower than nationally
Cap rates are higher than nationally
Slower office job creation than nationally
The area has a higher vacancy rate than nationally
Renting is less affordable than nationally
The area has lower absorption than nationally
Rents are rising faster than nationally