Spotlight On: John Leonard, First Vice President and Regional Manager – Atlanta, Marcus & Millichap

November 2025 — In an interview with Focus:, John Leonard, first vice president and regional manager of Marcus & Millichap‘s Atlanta office, discussed market resilience, shifting investor strategies, and regional growth. “Every transaction is different, and creativity is key to bridging the gap,” said Leonard.

Join us at caa’s upcoming leadership summits! These premier events bring together hundreds of public and private sector leaders to discuss the challenges and opportunities for businesses and investors. Find the next summit in a city near you!

What changes over the past year have most impacted the commercial real estate landscape in the Southeast?

It has been a challenging market for the past three years, especially since the Federal Reserve aggressively raised interest rates in June 2022. That move essentially stopped transactional volume, and the market has struggled since.

The past year, and particularly the last quarter, has brought some positive momentum. Recent policy developments supporting commercial real estate investment have reduced uncertainty, especially regarding tax advantages and government investment policies. As a result, activity has increased. Year over year, volume is up about 20%, and quarter over quarter, it is up 60%. While that shorter-term metric is not ideal for tracking overall trends, it reflects meaningful improvement.

With more certainty in the market, some investors are returning. Transactional volume has picked up significantly, and there is optimism it will continue through the second half of the year. This is a welcome shift for a market that has been subdued for several years.

How is investor sentiment evolving across the Atlanta market?

Overall, sentiment is positive. Despite some reports suggesting Atlanta’s growth is slowing, the metro continues to expand into secondary and tertiary markets. 

The Southeast, and specifically the Atlanta and Georgia markets, continues to show strong in-migration and employment growth. These factors have supported business activity and investor interest.

The multifamily sector saw significant construction in recent years, but much of that new supply has been absorbed. As this construction cycle winds down, multifamily performance is expected to stabilize. While each submarket faces its own unique challenges, the overall market remains strong and in demand.

What are investors looking for today that differs from previous cycles?

From a risk standpoint, there has been a shift. In 2021 and 2022, value-add multifamily deals were a major focus. Rents at that time were rising as much as 20% annually, making it possible to succeed without strong operational performance. Now, rents are flat or slightly declining, and investors must be more operationally skilled to manage and improve assets.

This has led to some price corrections in value-add properties. Investors are looking for signs of a bottom. In submarkets with potential rent growth, they are willing to pursue value-add opportunities, but in markets without that potential, such deals are harder to move.

The gap between seller and buyer expectations was extremely wide in 2022–2024, as many owners were still anchored to 2021–2022 pricing. Today, most owners have become more realistic, understanding that those prices are not returning. Buyers also recognize that interest rates are unlikely to return to 3%. Deals are now typically underwritten at interest rates between 5.5% to 6%, a level both sides have gradually accepted. 

Cost of capital directly impacts pricing. While this adjustment period has been challenging, there are still opportunities. For example, deals with assumable loans or creative seller financing can be attractive, particularly when existing debt carries a below-market rate. A HUD assumable loan at 4% for a 40-year term is a compelling proposition for many investors.

Looking at the 10-year Treasury at around 4.25%, that’s close to the long-term average. From 2015 to 2021, rates were closer to 2.5%, which spoiled expectations. That lower-rate period was driven by significant government spending and liquidity creation, which also created market imbalances.

The current environment represents more of a normalization. While the 10-year Treasury has dipped slightly in recent weeks, it remains market-driven. Most indicators suggest it will remain range-bound between 4% and 4.5%. Deals can work at that level, but investors must be realistic and not wait for a return to ultra-low rates.

What asset classes are currently seeing the strongest demand and where is there hesitation?

Multi-tenant retail has been extremely strong throughout most of this cycle, especially now. That includes both multi-tenant and single-tenant net lease retail, though each should be considered separately.

Multi-tenant retail never became overheated in 2021. Cap rates reached around 6%, but typically hover between 7.5% and 8%, so the market remained stable. During the pandemic, weaker tenants were forced out, leaving a stronger tenant base. Vacancies are lower than in the past, so while there may be less value-add potential, demand for this sector remains high.

Multifamily remains a strong asset class, though Atlanta has faced challenges with oversupply and application fraud. Some apartment builders report that half of all rental applications are fraudulent — an issue not seen to the same degree in other cities. This has slowed collections somewhat, but strong in-migration and job growth continue to support the sector’s long-term appeal.

Industrial has also been strong, particularly last-mile and smaller-bay spaces near the outskirts of the city. Self-storage is in a softer period due to flat rents and high reliance on new construction, but certain submarkets are starting to recover.

Single-tenant net lease properties are seeing a modest rebound in demand as the market moves toward more normalized conditions.

How is the company using technology to improve operations and client service?

Marcus & Millichap has invested in a platform called Archer, which applies AI technology to multifamily underwriting and analysis. The platform pulls data from multiple sources to produce underwriting models without requiring manual input of actual numbers, and those models are proving to be closely aligned with real performance.

While brokerage is still a relationship-driven business that requires in-person engagement, AI tools like Archer can improve efficiency in underwriting and deal analysis. For now, this is the main area where AI is being applied.

How do you see population growth shaping long-term real estate opportunities in the Southeast?

The region is very strong, and that strength continues to build. Having moved to the Southeast more than two decades ago, it is clear that the trajectory has been consistently upward.

Maintaining a business-friendly environment is key. In other regions, rent control measures have been used to address affordability, but in many cases, this has been counterproductive. Affordable housing is critical, but it should be addressed through solutions that encourage investment rather than deter it. 

Markets in the Southeast are becoming more interconnected. Cities like Charlotte, Nashville, and Atlanta are increasingly linked through migration and business activity, forming what could be considered a super metro area. While there is competition between these markets, they also benefit collectively from the region’s in-migration and job creation.

What are your top priorities for the Atlanta office over the next five to 10 years?

Recruiting and developing new talent remains a top priority. Expanding the agent pool allows the office to cover more territory and product types.

The company is well known for its training program, developed over 55 years of focusing solely on investment sales. This specialized expertise supports an advisory approach, helping clients preserve and create wealth.

Maintaining strong market knowledge, accurate underwriting, and client relationships is central to success. While technology has changed how people meet and communicate, relationships remain the foundation of the business. Our focus remains on building advisory relationships that extend beyond individual transactions.

How are deals getting done in today’s market, and what role is creative financing playing?

Transactions are still happening, though they often require more creativity. Some recent deals have involved sellers keeping equity in the property or offering seller financing. Motivated sellers are more willing to explore these structures.

With capital markets still challenging, creative financing will likely become increasingly important over the next few years. Every transaction is different, and creativity is key to bridging the gap between buyer and seller expectations.

Want more? Read the Focus: Atlanta report.