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Atlanta Economy Report | June 2021

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Inflation, labor shortages weigh on overall market sentiment

The Atlanta economy moved to a 5 on the Colliers Index for the first time in three months despite inflation pressures and a jobs miss for May.

Locally, Atlanta's commercial real estate market continues to improve with preliminary data suggesting a nice rebound for the office sector in Q2. Still, the amount of jobs added nationally last month missed estimates and remains behind the pace of the recovering economy.

Tack on the most recent inflation data showing U.S. consumer prices increasing 5% and market sentiment becomes muddled.

The good news is the overall economy continues to recover with most states having lifted their pandemic restrictions.

Atlanta economic outlook.

Although April's jobs gain for Atlanta was mediocre at 5,800; employment for the metro continues to inch back to pre-pandemic levels with the year-over-year number being positive for the first time in 12 months.

U.S. Employment

Leisure and hospitality led the way yet again in May with the bulk of the jobs added being in restaurants and bars. Public and private education experienced solid gains as well thanks to continued reopenings throughout the country.

JOLTS

The Job Openings and Labor Turnover Survey (JOLTS) reached its highest level on record back to 2000. The 9.3 million figure shows a continued struggle for employers to fill positions.

Factors including continued unemployment benefits, worker concerns and a fast-paced recovery of the economy have been cited by economists as contributing to the strong number of openings.

Atlanta Commercial Real Estate Market

The preliminary data for Q2 shows positive momentum for Atlanta's real estate sectors. Industrial continues to lead the way, however, the office market appears to be rebounding from its worst quarter ever on record in Q1.

Meanwhile, CoStar recently reported vacancies in Atlanta's stabilized multifamily properties reaching record lows.

Also, retail continues to improve with the amount of vacant square feet in the market, down 37% year-over-year.

Download the full report to learn about the economic data contributing to the Atlanta economic outlook for April including:

  • Interest rates
  • Employment statistics
  • Unemployment rates
  • GDP
  • Oil
  • Real estate development

 

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Atlanta Economy Report | June 2021

Download Report