Atlanta’s office development scene remains incredibly active: In the first four months of 2020, developers completed close to 1.7 million square feet of space, with an additional 1.5 million square feet slated for delivery through the end of the year. At the start of June, some 7.7 million square feet of office space was underway in Atlanta. Despite initial concerns that the COVID-19 pandemic would put a stop to development activity, the vast majority of the metro’s projects continue to move forward.
Although the shock of the pandemic will almost certainly result in falling demand for office space, Atlanta’s lower price points and diversified economy could help the metro’s properties weather the storm, to an extent. Even as uncertainty grows, speculative projects are still leasing up and work carries on, particularly in the Midtown submarket, which is home to 40 percent of all ongoing office development activity. The table below highlights the 10 largest office projects underway, utilizing data from Yardi Matrix.
10. Three Ballpark Center
The Atlanta Braves’ 300,000-square-foot project at 788 Circle 75 Parkway SE broke ground in early 2019, with completion slated for mid-2021. Cobb County’s development authority provided a total of $93.3 million in financing through a series of revenue bonds in 2018.
Brasfield & Gorrie is the general contractor for the 11-story project. ThyssenKrupp has fully leased the property next to the firm’s 420-foot elevator test tower, which topped out in May. The office building’s 2.5-acre development site is on the southern end of The Battery entertainment district, a quarter mile from Truist Park.
9. The Interlock
The only project on our list slated for delivery this year—The Interlock—kicked off in late 2018, financed with $98 million from Fifth Third Bank. The owner is a joint venture between S.J. Collins Enterprises S.J. Collins Enterprises, the Georgia Institute of Technology and Armada Hoffler Properties. The mixed-use development will have 200,000 square feet of office, 106,829 square feet of retail, a 150-key boutique hotel and 386 multifamily units.
Located at 1115 Howell Mill Road NW, the development’s office component will include 50,000 square feet for Georgia Technology Venture and 118,000 square feet for WeWork. The coworking provider plans to open its space in spring 2021, according to What Now Atlanta.
8. 14th & Spring
Slated for completion in June 2022, the 317,500-square-foot 14th & Spring is one of eight office developments underway in midtown Atlanta. Greenstone Properties and the PBS Group broke ground on the project in January 2020, backed by $84.7 million in construction financing from U.S. Bank. Balfour Beatty is the HKS-designed project’s general contractor.
When complete, the 12-story building at 1150 Spring St. will be the first phase of a larger mixed-use development, set to include a total of 15,000 square feet of retail space and 339 luxury rental units in a separate 12-story tower. In addition to a wide range of amenities—from bicycle storage to a rooftop terrace—the project will have a subterranean parking structure with 840 spaces. The developers are pursuing LEED Certification.
7. 712 West Peachtree
Portman Holdings’ 318,226-square-foot development at 712 West Peachtree is taking shape just east of the Georgia Institute of Technology’s campus. Construction began in May 2019, and the project is slated for delivery in the first quarter of 2021. The 21-story Midtown building will have 13 stories of office space above an eight-level parking structure, and 8,761 square feet of retail space on the ground floor.
Anthem is the anchor tenant for the project. The health insurance company already occupies the newly completed, 360,000-square-foot Anthem Technology Center, a short distance away at 740 W. Peachtree St. Portman Holdings delivered that property in February.
6. One Phipps Plaza
Simon Property Group’s One Phipps Plaza, a redevelopment of the retail investor’s Phipps Plaza shopping mall, is the largest office project underway in Bucktown. Atlanta Business Chronicle reported that construction was halted in early April amid the COVID-19 pandemic, though the project could resume soon, depending on the response to the health crisis.
Located at 3550 Peachtree Road, the development’s 357,589-square-foot office component is a new addition to the site. The project will also see the addition of a Nobu Hotel and Restaurant, a 10,000-square-foot food hall and a 90,000-square-foot fitness center.
5. Atlantic Yards
Hines’ and Invesco’s 523,500-square-foot Atlantic Yards is the largest project underway in the West Atlanta submarket. The development, financed with a $127.6 million construction loan from Pacific Coast Capital Partners, kicked off in early 2019 and is slated for delivery next summer.
In May, Microsoft inked a deal with the developers to fully occupy the project’s two buildings in a deal valued at $75 million. The tech giant plans to utilize the space to focus on cloud services and artificial intelligence development, creating some 1,500 new jobs.
4. Midtown Union
The owner of the 606,000-square-foot Midtown Union, located at 1295 Spring St., is a joint venture between MetLife Investment Management and Granite Properties. The project began in late 2019 and is targeting a June 2022 delivery date. Prior to breaking ground, the developers inked a 300,000-square-foot leasing deal with Invesco for nearly half of the total space. The project is within half a mile of the investment manager’s global headquarters at Two Peachtree Pointe.
Midtown Union’s office space is one element of a larger development, slated to include a 250-key hotel, some 87,000 square feet of retail space and 350 multifamily units. Additionally, a 1,900-space parking garage is planned for the 8.5-acre mixed-use project.
3. 1105 West Peachtree
Selig Enterprises’ $530 million, 680,000-square-foot Midtown development is the metro’s largest multi-tenant project underway. Work began at the start of 2019, with delivery slated for the first quarter of 2022. In November, Blackstone provided the developer with $340 million in construction financing.
Law firm Smith, Gambrell & Russell and Google are anchoring the project. Office amenities include a 1-acre open area atop a parking structure, which will feature a swimming pool, green space and restaurant. In addition to its office component, the development will have a boutique, 178-key hotel, 64 luxury condominiums and 25,000 square feet of retail space at its base.
2. Norfolk Southern Midtown Headquarters
Norfolk Southern’s 750,000-square-foot headquarters development broke ground in March 2019 and is expected to wrap up in the third quarter of 2021. The 22-story project will include some 13,000 square feet of retail space in addition to its office element. Bank of America provided the owner with a $550 million construction loan, which matures in late 2026.
The developer, Cousins Properties, sold the 4.1-acre project site at 650 W. Peachtree St. to Norfolk Southern for $52.5 million prior to groundbreaking. Pickard Chilton is providing architectural services for the development. The rail operator’s headquarters, once relocated from its current location in Norfolk, Va., is expected to bring some 850 jobs to the metro.
1. State Farm at Park Center – Phase II
The 1.2 million-square-foot second phase of State Farm’s Park Center is the largest office project underway in Atlanta. Construction on the development’s two buildings at 245 Perimeter Center Parkway began back in early 2017, and the property is slated for delivery in early 2021.
Developer KDC is partnering with design firm Cooper Carry & Associates and general contractor Holder Construction Co. on the project. State Farm’s first phase—a 13-story, 590,926-square-foot building above the Dunwoody MARTA station—delivered in 2017. At full build-out, the development will bring nearly 5,000 employees to the Central Perimeter submarket.