27 Nov Commercial Real Estate Market Analysis for the City of Tucker
Location: City of Tucker, Georgia
Client: City of Tucker
Lead Consultant: KB Advisory Group
Services Provided: Commercial Real Estate Market Analysis
City of Tucker engages KB Advisory Group to conduct a commercial real estate market study
KB Advisory Group (KB) Scope
The City of Tucker enlisted KB Advisory Group to carry out an analysis of the commercial real estate market for a one-acre site in the City of Tucker. The subject site was located along Northlake Parkway, near the I-285 interchange.
The market analysis was intended to help determine the subject site’s best positioning in attracting tenants to a 10,000 square foot commercial space on the subject site. KB analysts assessed the opportunity to attract retailers and the potential for a medically-focused commercial space using historical and forecasted demographic and economic data. They examined the local context, current market conditions, and site potential using a 3-mile buffer as the primary market area.
The subject site was located on Northlake Parkway near the intersection of Lavista Road in Tucker, DeKalb County.
The “primary market area” represented the 3-mile area from the site and where a majority of the demand for new commercial space was expected to be derived from. The primary market area consisted largely of the City of Tucker, the City of Clarkston, and parts of unincorporated DeKalb County.
To provide conclusions and recommendation for the subject site, the analysis employed primary and secondary data to observe comparable nearby properties and comparative market statistics. In addition to assessing the commercial real estate activity in primary market area, this report examines the demographics of the surrounding populace.
KB analysts found the 3-mile primary market area for the subject site was experiencing growth commensurate with the county overall – except in the immediate vicinity of the site, where there was an acute growth of new residential units. The new residential growth directly adjacent to the site provided a unique opportunity for the subject site to take advantage of the potential consumers or users that are steps away.
New retail was found to have higher rents and lower vacancy rates compared to older retail in the area, and the immediate area had a large concentration of retail and office space, including a regional mall and a high density of shopping centers and office parks. Many of these commercial spaces were aging, “big box” stores. Existing medical office inventory in the primary market area could be characterized similarly– largely older with vacancy rates of 20%
Based on findings from KB Advisory Group’s analysis, demographics and demand drivers, commercial supply trends, and primary market area demand indicate that the subject site could reasonably absorb between 8,000 and 10,000 square feet of neighborhood-serving medical offices and up to 10,000 square feet of food and beverage-focused retail.