The Cherokee/Woodstock retail submarket has remained relatively stable over the past 12 months, with vacancy rates holding steady at 1.9%. This stability is despite the delivery of 34,000 square feet (SF) of new retail space and the absorption of 30,000 SF during the same period.
Within the Cherokee/Woodstock submarket, General Retail is the largest subtype, accounting for 7.6 million SF of inventory. This category includes a mix of big-box retailers, shopping centers, and smaller storefronts. The submarket is also home to a significant amount of office and industrial space, providing a diverse tenant base for retail businesses.
Rents and Sales
Rents in the Cherokee/Woodstock submarket have seen steady growth in recent years. Current average asking rents are around $21.00/SF, a 5.7% increase from one year ago and a cumulative 19.8% increase over the past three years. This growth in rents is being driven by the strong demand for retail space in the area, as well as the limited supply of available space.
Sales activity in the Cherokee/Woodstock submarket has also been robust, with 52 sales taking place in the past 12 months. Sales have averaged $200/SF, and the estimated value for the submarket as a whole is $234/SF. This represents a significant increase in value over the past three years, during which time there have been 248 sales totaling approximately $613 million.
Investment Considerations
The Cherokee/Woodstock retail submarket offers a number of attractive investment opportunities for commercial real estate investors. The submarket’s strong demand for retail space, combined with its limited supply, is expected to continue driving rent growth in the coming years. Additionally, the submarket’s diverse tenant base and strong sales activity provide investors with a high degree of stability and liquidity.
Market Cap Rate
The market cap rate for Cherokee/Woodstock has edged down to 6.7% over the past three years, marginally lower than its trailing three-year average of 6.8%. This compression in cap rates is a reflection of the strong investor demand for retail properties in the submarket.
Overall, the Cherokee/Woodstock retail submarket is a strong and stable investment market for commercial real estate investors. Its low vacancy rates, high rents, and strong sales activity provide investors with a compelling opportunity for long-term returns.
Investors have been especially active in the capital markets in Cherokee/Woodstock, making it one of the most heavily traded submarkets in the region over the past several years. Annual sales volume has averaged $160 million over the past five years, including a 12- month high of $259 million over that stretch. The recorded transaction volume here reached $134 million in the past year. The general retail sector drove that volume.
Market pricing, based on the estimated price movement of all properties in the submarket, sat at $234/SF during the first quarter of 2024. That market price is up compared to the first quarter from last year, and pricing is still ahead of pricing across the Atlanta region. The market cap rate has contracted over the past year to 6.7%, which is pretty similar to the metro.
Investors have been especially active in the capital markets in the Cherokee/Woodstock submarket, making it one of the most heavily traded submarkets in the region over the past several years. The annual sales volume has averaged $160 million over the past five years, including a 12-month high of $259 million over that stretch. In the past year, the recorded transaction volume reached $134 million, driven primarily by the general retail sector.
The market pricing in Cherokee/Woodstock, based on the estimated price movement of all properties in the submarket, sat at $234 per square foot during the first quarter of 2024. This represents an increase compared to the first quarter of the previous year, and pricing remains ahead of the average across the Atlanta region. It’s worth noting that the market cap rate has contracted over the past year to 6.7%, which is relatively similar to the rate observed in the broader metropolitan area.
The retail sector in Cherokee/Woodstock has demonstrated resilience and growth, contributing significantly to the overall market activity. The submarket’s strategic location, strong demographics, and expanding population base have attracted both local and national retailers, leading to increased demand for retail space. This demand has been met by the development of new shopping centers and the expansion of existing ones.
The outlook for the Cherokee/Woodstock submarket remains positive. The continued investment in infrastructure, such as the widening of GA 400 and the construction of new interchanges, is expected to further enhance connectivity and accessibility. Additionally, the presence of major employers, including WellStar Health System and UPS, provides a stable economic foundation for the area.
Overall, the Cherokee/Woodstock submarket offers compelling opportunities for investors and businesses alike. With its strategic location, strong retail sector, and favorable market conditions, it is poised for continued growth and success in the years to come.
Download Latest Cherokee County Retail Real Estate Market Reports
January 2023 Cherokee County Retail Market