Georgia Retail Sector Still Lagging

The proliferation of retail bankruptcies and liquidations has resulted in a major increase in available anchor space and a decline in rent, according to CBRE’s Georgia Retail Anchor Report.

Here are some takeaways from the report:

Despite this, the demand for high-end Class A space remains high. The fitness and recreation category was the most active, accounting for 20% of retail anchor deals in 2024.

Georgia’s retail landscape is experiencing a significant shift, with available anchor space jumping by a staggering 57% in 2024. At the end of 2024, 6.8M SF retail was available, up from 4.3M SF in 2023.

As a result, lower quality spaces are flooding the market with a surplus of Class B and C retail anchor spaces. This is driving down rental prices. Currently, the average asking rent is $11.76, and the average rent comp is $12.26. 

These factors are driving what we expect will be a prolonged market slowdown for many owners of retail anchor space, with an average market time exceeding 2 years.