2015 marks the year of the boomers. No, we’re not talking about population trends; we’re talking about the commercial and retail real estate industry in the greater Atlanta area. Atlanta’s retail market alone is booming, reaching peak statistics since the mid-2000s. The city’s retail occupancy is the highest it has been in seven years, and vacancy levels have dropped to 10.8%. These numbers result from a few recent trends:
- Overall expansion of the metro Atlanta area population
- Increase in employment base
- Increase in construction activity primarily in urban locations like Buckhead, Central Perimeter and Midtown
infinitee is currently partnering with Fuqua Development on the largest retail project under construction in Atlanta, the Braves SunTrust Park. As developers realize the rising importance of the “customer experience,” creating a mixed-use environment that establishes a strong consumer base shifts into focus. Equally important is the marketing strategy for generating interest in the new development amongst targeted tenants. infinitee has employed multiple tactics to spark curiosity and interest about the retail component of SunTrust Park, including the creation of a leasing website, SunTrustParkRetailLeasing.com, an email marketing program, leasing brochure and touchpoint package. A unique touchpoint package was developed and sent to targeted tenants that included a Rimowa suitcase filled with memorable collateral material including: travel itinerary information about the development, a guidebook containing information about the project and area, and an offer to visit the development to see the anticipated “customer experience” in person.
Other Atlanta submarkets showing strong occupancy gains include the urban markets of Midtown and Buckhead. In the second quarter of 2015, Buckhead saw just less than 200,000 square feet absorbed. Its vacancy rate is half of what it was in 2010 with Class A vacancy at the lowest rate in seven years. OliverMcMillan engaged infinitee as the local marketing agency for their new mixed-use project, Buckhead Atlanta, encompassing 8 blocks of new development that totals 1.5 million square feet of retail, restaurants, office space, luxury apartments, entertainment and more. Additionally, this development now serves as the new headquarters for the $1 billion dollar company, Spanx, Inc. infinitee launched two separate social media marketing plans to brand both Buckhead Atlanta and The Residence. The results of the digital branding strategy were a significant gain in followers for both platforms as well as high levels of fan engagement. The majority of followers and engagement across both social media profiles stem from upscale Atlanta neighborhoods and wealthy suburban communities aligning with the property’s target retail audience and residential objectives.
Over the past four years, PM Realty Group (PMRG) has retained infinitee’s marketing and design services to secure new management contracts for the commercial real estate firm as well as branded leasing efforts resulting in occupancy rates as high as 98% in some markets. For Tower Place 200, also located in Buckhead, infinitee created a visually appealing marketing center—where potential tenants were invited to experience Tower Place 200—coupled with graphically intriguing sales collateral. PMRG was able to increase occupancy to a level that positioned the building for sale within just two, short years after the launch date of the new marketing strategy. The Buckhead submarket is expected to see continued, positive growth through the end of the year predicting a vacancy rate below 10% by January 2016.
With an anticipated job growth of 200,000 jobs in the next two years and demand for retail space remaining high from corporate relocations, existing tenant expansions and new-to-market leases, it is clear that Atlanta’s real estate market has no signs of slowing down. Now more than ever, it is essential for commercial and retail real estate firms to ensure they are taking the necessary steps to maintain a strong brand image and build meaningful connections with their respective tenants. Employing the right marketing partners is a necessity in today’s “new” development landscape to create your competitive advantage and point of differentiation.
For more information on how to stay ahead of the competition, call Jocelyn Smith at infinitee, 404-231-3481.
