Atlanta State of the Market: Mixed-Use on the Rise
Take a look around any Atlanta neighborhood and it’s easy to see that our city is growing. At the Bisnow Atlanta State of the Market event last month, we heard from some of those at the forefront of major real estate developments in the area and learned what we can expect as our city moves into the future. If you missed the event – no worries – today we’re covering what we learned and what to be on the lookout for.
Mixed-Use on the Rise
Mixed-use developments have become one of the most active development models within the real estate sector. In Atlanta, developers and investors alike are increasingly and proactively looking for opportunities to combine different uses with a focus on “place-making” and to create destinations that offer multiple draws. As Atlanta and its submarkets continue to expand, developers that integrate a mix of office, residential, hotels, entertainment, and retail will enhance the productivity of each component of the project and diversify the risk to any one asset class.
Where is the Capital Flowing?
Buckhead and Midtown are the hottest sub-markets because of a constrained supply and developers in these areas are relying on the amenities within the neighborhoods as much as those in the mixed-use developments they build to attract tenants.
“It’s not just what’s inside the space – it’s what’s outside the front door,” – Mark Toro, Managing Partner at North American Properties said. And in many cases, the “what’s outside the front door” is access to greenspace and mass transit.
Developments like Ponce City Market take advantage of a prime location along the Atlanta Beltline by offering free bike valet for its customers. Further up-town, Atlantic Station provides a complimentary shuttle service to bring customers to and from the nearest MARTA station. And in Buckhead, shopping destinations like The Shops Buckhead Atlanta offer four complimentary valet locations and personal bag valets to handle customer purchases while they continue to shop.
Conveniences like these will continue to pop up across the city as the population becomes more dense and developers continue to follow the nation-wide trend of building less parking spaces within mixed-use developments.
Giving Customers What they Want
Across the board, mixed-use developers must continue to attract the right tenant mix to remain profitable in the growing market. And attracting those tenants early can mean the difference in achieving fully leased properties – or even whether or not they receive initial project funding.
As the demand for traditional retail options declines, mixed-use developers are looking to bring in more grocers as anchor tenants. It’s not surprising that in a foodie town like Atlanta – even those grocers are adapting to meet the needs of customers by allowing more food related co-tenants and providing expanded services for food delivery services within the properties.
Outside of food, open spaces for leisure and entertainment will also continue to grow in popularity as younger generations continue to demonstrate a preference for buying experiences over things. Check out our take on other amenities trends to watch for here.
Looking ahead, mixed-use developments will continue to thrive in Atlanta. In 2018 alone, building permits issued here accounted for $4 billion in growth. The key to ensuring profitability for these new developments will ultimately mean keeping them occupied and working with a marketing partner both in the planning stage and beyond will be crucial.
At infinitee, we’re into tracking trends that matter to our clients. For 30 years, our Atlanta-based agency has specialized in branding, marketing, strategy, print and digital media, video and photography. To see how our talented team can help your brand, call Jocelyn Smith, Founder & CEO at 404-231-3481, x119.