Atlanta’s Retail Dynamics: Insights from Amy Fingerhut
In the vibrant city of Atlanta, where culinary delights meet shopping experiences, there’s one name that stands out in the retail scene: Amy Fingerhut. As a senior vice president at CBRE, she’s played a significant role in reshaping the retail landscape, particularly focusing on the bustling food and beverage sector. For those who’ve indulged in the flavors of Fox Bros. BBQ, enjoyed a meal at True Food Kitchen, or shopped at trendy stores like Lululemon and Patagonia, the chances are pretty high that Amy had a hand in bringing those brands to life here.
What’s Brewing in Atlanta’s Restaurant Scene?
While it’s been a stellar time for retail landlords, with rising rents and low vacancy rates, the restaurant business is experiencing somewhat of a shake-up. Fingerhut points out that before the pandemic, about 20% of shopping center spaces were occupied by food and beverage outlets; now that number has jumped to around 50%. She candidly notes, “We are already seeing cracks, since the market doesn’t support all of them.”
Fingerhut’s path to becoming a retail broker wasn’t the conventional route. After spending her teenage years in restaurants, dreaming of running her own, she faced the harsh reality of long hours and slim paychecks. After a brief foray into tax consulting with Deloitte, she pivoted to commercial real estate, discovering a passion that kept her engaged and eager. “I love, love, love what I do,” she exclaims. “To me, my career is not like work.”
Retail Rent Realities
When asked about the current state of retail rent, Fingerhut maintains that nationwide rates are reaching unsustainable heights, especially for a city like Atlanta, which, while growing, does not have the same tourist influx as cities like New York or Los Angeles. She explains, “We don’t have the ability to necessarily keep up with that.” Her concern is that without adjustments in rent growth, the market may face challenges in maintaining a healthy retail ecosystem.
The Evolution of Atlanta’s Retail Landscape
Over the years, Atlanta has seen dramatic changes, particularly in its demographic makeup. With a younger average population age of 35, the city has become a hotspot for digital brands seeking to establish roots on the East Coast. “We have retail brands that are putting Atlanta potentially first in their U.S. expansion,” she says, highlighting the shifting retail landscape.
The city’s rapid growth is also reflected in its evolving dining culture. With increasing competition in the restaurant sector, Fingerhut warns that the influx of eateries may not be sustainable, particularly as rent prices continue to surge. Too many restaurants competing for the same consumer base can lead to closures, especially if operators aren’t careful with their business strategies.
Consumer Behavior in Transition
As we look ahead, Fingerhut shares insights on facing consumers, especially with rising consumer debt. While spending habits are adjusting, she believes there are still fundamental needs that drive spending, like dining and entertainment. That said, she observes a shift where consumers are exploring healthier lifestyles, affecting traditional dining sales. “I think people will instead limit what they’re doing,” she explains, noting a trend of socialization without alcohol.
The Future of Atlanta’s Retail Space
With developers eyeing potential projects, the relaxation of lending restrictions could open new avenues for retail development. However, the high costs of land and construction loom large, creating caution in the market. Fingerhut projects that while some space could come back to the market post-holidays, it’s essential that it aligns with consumer demand to avoid flooding the market unnecessarily.
A City of Culinary Dreams
Despite concerns, Fingerhut is optimistic about Atlanta’s restaurant scene. “Atlanta is one of the best restaurant cities in the United States,” she asserts, attributing its reputation to a strong local culture. Yet, she warns that rapid expansion without thoughtful planning could hinder the unique community spirit the city has cultivated over time.
Looking back on her journey from the restaurant industry to the commercial real estate sector, Fingerhut applies her experiences to help restaurateurs succeed. “It’s about understanding profit and loss,” she says, emphasizing the importance of operational knowledge in the current environment.
Wrapping It Up
As Atlanta continues to evolve, retail and dining experiences remain central to the city’s charm. With leaders like Amy Fingerhut at the helm, there’s a nurturing vision for the future that blends growth with a heart for community. For those thriving in Atlanta’s food and retail scene, her insights serve as a guide to navigating the complex landscape ahead. So, the next time you enjoy a meal in Atlanta, remember that there’s more than meets the eye—behind every delicious bite, there are figures like Amy ensuring that the city remains an exciting place for all.
