TerraCap Management Inks 50 KSF Lease at Suburban Atlanta Campus

3100 Breckinridge. Image courtesy of Lincoln Property Co.

TerraCap Management, of Naples, Fla., has secured a 50,000-square-foot lease at its 3100 Breckenridge office park in Duluth, Ga., bringing one of the buildings there to full occupancy. Lincoln Property Co. Southeast arranged the lease.

The new tenant at the park’s Building 1200 is Trenton Systems, a computer hardware manufacturer serving the aerospace and defense industries.

The 30-acre, 253,300-square-foot park is between Pleasant Hill Road and Old Norcross Road in Duluth and offers direct access to I-85. It’s also within the Gwinnett Opportunity Zone, which provides a tax credit of $3,500 per new job created annually for five years.

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Trenton was represented by David Shockley from Progressive Realty LLC. Lincoln’s Senior Vice President Hunter Henritze, Vice President Matt Fergus and Senior Leasing Associate Seabie Hickson represented the landlord.

In a prepared statement, Fergus noted that the building “reached full occupancy despite the conditions created by the pandemic.”

TerraCap announced about 30 days ago that it had sold six buildings at the park to an undisclosed buyer, retaining only a single building that had been occupied by IBM. That building, the company stated, was the subject of active lease negotiations, the successful conclusion of which would leave the building fully occupied.

Turning a corner?

Although pandemic-driven occupancy losses and high levels of deliveries have pushed the average metrowide office vacancy to 16.7 percent, positive absorption in the second half of 2021 indicates some degree of recovery for the Atlanta office market, according to a fourth-quarter report from Colliers. Further, new supply is moderating, which can only help.

Fortunately for the Northeast submarket, it’s seeing just 89,000 square feet of space under construction, on an inventory of 24.1 million square feet. Overall vacancy in the submarket has declined to 14.5 percent, also according to Colliers.