ATLANTA—The retail market is on an upswing nationwide. But what should Atlanta developers, investors and retailers expect in 2016?
GlobeSt.com caught up with two experts at Franklin Street to get some perspective. We asked Monetha Cobb, managing director of retail tenant services and Bryan Belk, senior director of retail investment sales, for some thoughts.
“Across the nation the retail market is experiencing a lack of space, especially in class A core markets,” Cobb tells GlobeSt.com. “Towards the end of 2016 or early 2017, we’ll begin to see the deliveries of new construction, which will loosen the competition for available space.”
As Cobb sees it, this should slow down rent escalation in core markets. With new space being delivered six to 12 months down the pipeline, she says, retailers are using this time to figure out how to expand their brands beyond bricks and mortar locations.
“Conversely, online-only retailers are seeking bricks and mortar space as well,” Cobb says. “There’s no ‘one size fits all’ way to be in the retail industry today, so retailers have to do it all in order to keep shoppers constantly thinking about their brand.”
Cobb believe Atlanta could see some co-branding or multiple brands partnering up to reside under the same roof. Her conclusion: it’s certainly an exciting time in retail.
“Buyers are investing in smaller markets to get yield as pricing in primary markets continues to rise,” Belk tells GlobeSt.com. “Many great value-add opportunities lie in suburbs of major markets where stores have closed and active tenants like Walmart Neighborhood Market, Hobby Lobby, Academy Sports, et cetera, can backfill retail spaces with strong credit and immediate create value to a center.”