CBRE: Available anchor space in Georgia rose by 57% in 2024
Expanding retailers, is Georgia on your minds? If not, it very well should be.
According to a new space tracking report released by CBRE Retail Services, available anchor space rose by a staggering 57% in The Peach State in 2024. The study found that 6.8 million sq. ft. was available, up from 4.3 million sq. ft. in 2023.
More than 150 anchor spaces were vacant — a rise of more than 50% in a year’s time. Accordingly, average rents in the state dropped from $12.80 to $12.53. Rent comps fell to $11.76 from $12.26.
Lower quality spaces in Class B and C centers began flooding the market in Georgia. Bankruptcies filed by major chains such as Big Lots and Joann Fabrics (and most recently Forever 21) will add more than 1 million sq. ft. to Georgia’s retail real estate market and result in far-reaching consequences for businesses and consumers alike, CBRE predicted.
“A lot of space jumped on the market, but mostly Class B and C space. They’re now competing with each other for low-rent deals,” said Joe Parrott, senior VP of CBRE Real Estate Services Atlanta. “This could lead some typical Class A tenants to consider Class B spaces.”
Anchor spaces are flooding the market in Georgia, jumping from 41 in 2023 to 78 in 2024, and CBRE predicts that ongoing brand liquidations will continue to fuel that trend. Average market times for available spaces exceed two years.
“A lot of spaces came on the market in late 2024. Those are going to take quite some time to lease,” Parrott said.
Fitness and recreation brands have been the most active new tenants in the state, signing 20% of new retail real estate deals in 2024. Apparel and shoe retailers accounted for 16%, and furniture and home décor brands claimed 14%.
Planet Fitness, Crunch, Burlington, Ross Dress for Less, Home Goods, and Home Outlet were among the most active brands.
“What’s happening in Georgia is similar to what we’re seeing in markets across the country,” observed Parrott. “Liquidating brands like Big Lots and Joann and Bargain Hunt are surrendering properties nationwide.”
