by TOA Admin | April 1, 2025 | Research & Stats
By Chris Evans | April 1, 2025
Georgia’s economy is growing—but not without some shifts. A new white paper from Haruka Scott Holdings gives a full picture of where the state stands in 2025. It covers job trends, inflation, real estate, and what to expect next.
So what does this all mean for commercial real estate (CRE)? Whether you’re an investor, developer, or business owner, this guide breaks it down for you.
Georgia’s Job Market: Slower, But Still Strong
Georgia’s workforce has shrunk slightly—about 20,000 fewer people working since fall 2024. Still, unemployment is low at 3.6%, and jobs in healthcare, education, and government are growing.
What this means for CRE:
- Office space may see slower demand, especially in older buildings. Hybrid work is still here.
- Medical and education buildings are in high demand. These are good areas to watch for growth.
- Industrial buildings may shift toward automation-heavy tenants instead of large labor forces.
Construction Slowing, but Real Estate Staying Strong
Construction jobs have cooled, but spending on building projects is still up. This means fewer projects are happening—but the ones that are happening are bigger and more valuable.
CRE takeaway:
- New builds are slower, especially for smaller or speculative projects.
- Renovation and repurposing of old buildings are becoming more common. Think retail buildings turned into clinics or offices turned into apartments.
- Tenant demand is shifting toward efficient, high-traffic locations with flexibility.
Real Estate and Tech Are Driving Georgia’s Economy
Real estate brought in over $124 billion in 2024. Tech also grew, bringing in $56.5 billion. These two sectors are leading the charge in Georgia.
What this means:
- Apartments and rental housing are booming, especially in metro areas like Cobb, Gwinnett, and Fulton Counties.
- Tech campuses and data centers are expanding. Areas with strong internet and infrastructure are hot spots.
- Broker tip: Look for land near highways and fiber lines. These will only get more valuable.
Inflation Is Slowing—But Essentials Are Still Expensive
Overall inflation in metro Atlanta is about 2.1%. But some everyday items are going up faster:
- Food: +2.3%
- Housing: +2.5% to 2.8%
- Household goods: +5.0%
- Apparel: +5.0% in just two months
CRE impact:
- Retail tenants are feeling squeezed. Rent increases might scare off smaller shops and restaurants.
- Landlords need to be flexible—think shorter leases, more incentives, and good tenant support.
- Essential services like healthcare, grocery, and pet care are more reliable tenants in tough times.
Population Growth Is Fueling Long-Term Demand
Georgia’s biggest counties are growing fast:
- Gwinnett will add 250,000+ residents by 2060.
- Fulton will surpass 1.3 million by 2040.
- Cobb will grow by over 135,000.
CRE outlook:
- Mixed-use and transit-friendly buildings are key in fast-growing areas.
- Retail centers, schools, and medical offices will be in high demand in these counties.
- Land near transportation routes (MARTA lines, major highways) will be worth more over time.
Rural Areas Face Challenges—But Also Have Potential
Not all of Georgia is growing. Rural areas are seeing slower growth or even decline. But with the right investment, these areas could become hidden gems.
What to watch for:
- Ag-tech, solar, and broadband projects can drive new rural development.
- Healthcare clinics and coworking spaces in small towns will be in demand.
- State and federal incentives are available in many rural areas—use them.
Hot Sectors for 2025 and Beyond
Here are five sectors to watch if you’re investing in or working with commercial properties:
- Healthcare – More clinics, medical offices, and assisted living centers are needed.
- Logistics – Warehouses and trucking centers near ports and highways will stay strong.
- Education – Schools, childcare, and tutoring centers are growing.
- Manufacturing – Think EVs, aerospace, and automation. These businesses need modern industrial space.
- Technology – Data centers, tech offices, and coworking hubs will keep expanding.
Final Thoughts: Georgia’s Next CRE Chapter
Georgia’s economy is healthy overall, but it’s shifting. Jobs and growth are moving toward healthcare, tech, education, and public services. At the same time, inflation and construction slowdowns are changing how businesses and developers think.
For commercial real estate, now’s the time to:
- Focus on high-growth counties
- Watch tenant demand closely
- Invest in properties that serve real needs (housing, health, education)
- Explore both metro and rural opportunities
- Be ready to adapt as costs, population, and industries evolve
With the right moves, CRE professionals can help shape Georgia’s future—and grow with it.
🔗 Read the full white paper here: White Paper: The State of Georgia’s Economy in 2025