News Summary
Atlanta is facing a significant slowdown in retail construction, reaching an all-time low due to rising costs. While new developments are scarce, key projects like The Shoppes at The Gathering and Georgia-Pacific’s headquarters redevelopment offer hope for future growth in the retail sector. These projects aim to address the city’s retail space shortage while aligning with ongoing economic initiatives.
Atlanta is experiencing a significant slowdown in retail construction, currently reaching an all-time low largely due to rising construction and financing costs. This decline has exacerbated the existing shortage of available retail space in the city, posing challenges for developers and retailers alike.
Despite the decline in new retail developments, plans for several key projects are underway. Lincoln Property Company has initiated site construction for a new community retail center in Alpharetta, Georgia, named The Shoppes at The Gathering. This retail project will span 43,700 square feet and is strategically located less than a mile from downtown Alpharetta and Avalon. Vertical construction is slated to begin in the fall of 2025, with the full delivery of the project expected in the fourth quarter of 2026. The center will feature seven buildings, each varying between 4,225 to 8,400 square feet, providing space for both single and multiple retailers. Architectural inspiration is drawn from the aesthetics of Napa Valley.
In addition to The Shoppes at The Gathering, D&A Investment Group is proposing a retail shell building on Paces Ferry Road SE in Vinings. This proposed building will cover 17,155 square feet, designed to accommodate up to 12 tenants, which may include options for restaurants, retail shops, or office spaces. Plans also include 112 parking spaces. This project is associated with the ongoing ‘Shops at Vinings Ridge’ initiative that has been reviewed since 2019. Groundbreaking is expected to occur in early 2025. Among the anticipated tenants for this development is Just Brunch Breakfast Bar, which is expected to open in late 2025.
In a noteworthy redevelopment effort, Georgia-Pacific is set to transform its world headquarters located in Downtown Atlanta. The ambitious project aims to convert part of the iconic 51-story Georgia-Pacific Center into approximately 400 apartment units. In addition to residential spaces, the company intends to maintain 600,000 square feet for office use, including the headquarters. There are also plans to create 125,000 square feet of new retail, restaurant, and entertainment options, along with a central plaza spanning 35,000 square feet. The Georgia-Pacific Center, a significant landmark at 133 Peachtree St. and Atlanta’s sixth-tallest building at 697 feet, is expected to see this redevelopment completed by the fall of 2027. Georgia-Pacific is actively seeking potential investors to support these redevelopment efforts, which align with Atlanta Mayor Andre Dickens’ initiative to boost housing and downtown development. The inclusion of affordable housing units is also being evaluated in the development plans.
The decline in retail construction in Atlanta reflects broader economic conditions, as rising costs continue to deter developers from moving forward with new projects. As construction financing becomes more expensive, many developers are holding off on new ventures. The ongoing developments, such as The Shoppes at The Gathering and Georgia-Pacific’s headquarters redevelopment, provide insight into the future of retail in Atlanta, indicating that while current construction rates are low, there are nonetheless strategic efforts to enhance retail opportunities in the region.
Overall, the retail landscape in Atlanta is in a period of transition, with slow construction rates but key developments on the horizon poised to reshape the city’s commercial real estate scene.
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Additional Resources
- CoStar: Retail Construction in Atlanta at All-Time Low
- Wikipedia: Retail
- Connect CRE: Lincoln Property Building Alpharetta Retail Center
- Google Search: Alpharetta Retail Center
- What Now Atlanta: New Commercial Project Moving Forward in Vinings
- Google Scholar: Vinings Commercial Project
- Bisnow: Georgia-Pacific to Remake its Downtown Atlanta HQ Tower
- Encyclopedia Britannica: Georgia-Pacific
- CoStar: Atlanta Buys Retail Buildings for Beltline Extension
- Google News: Atlanta Beltline Extension
