AIG Eyes Atlanta, Dallas For Major Corporate Consolidation
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A major insurance giant is eyeing an office consolidation that could gobble up at least 600k SF of prime office space in one of two cities in the South.
American International Group, better known as AIG, is in the early stages of a possible corporate consolidation. One of the country's largest insurance conglomerates, AIG is at least considering Atlanta and Dallas, two cities where it already has sizable operations. Sources tell Bisnow AIG has been making inquiries with landlords and developers about a possible corporate campus where it would use at least 600k SF of office, preferably within a mixed-use campus.
It is a deal that could very well spur a new build-to-suit office campus. It is unclear how many jobs the deal would entail or from what areas and cities AIG would consolidate.
“We don’t comment on specific market rumors," an AIG spokesperson said in an email. "AIG regularly engages in ongoing reviews of its real estate investment portfolio and footprint in markets around the world to ensure we are operating in an efficient and cost-effective manner."
In Atlanta, AIG's main office is at Northpark Town Center in Sandy Springs with more than 80k SF. AIG also leases 138k SF in Plaza of America South Tower in Downtown Dallas, CoStar senior market analyst David Kahn said.
And this is not the first time AIG has been said to be eyeing a corporate consolidation, at least in Atlanta. In 2013, the Atlanta Business Chronicle reported AIG looked to reduce its 350k SF Atlanta office footprint dotting metro Atlanta by 40%.
In 2015, Bisnow reported AIG was considering a plan to anchor Abernathy 400, a planned mixed-use office project at the corner of Abernathy Road and Georgia 400 that's being developed in a JV between Ackerman & Co and Cousins Properties, with as much as 300k SF.
Aside from Abernathy 400, there are a handful of sites in Central Perimeter that could kick off an AIG campus, including Hines Interests' 100 Northpark project in Sandy Springs and Boston-based GID's High Street project, a 42-acre mixed-use development that could include 8M SF of mixed-use space, including 1M SF of office, on a site bordered by Ashford-Dunwoody Road, Hammond Drive and Interstate 285.
As for North Texas, sources said Thomas Land & Development's mixed-use Wade Park project is one of the contenders for the potential deal. Just this past week, Thomas – headed by Atlanta developer Stan Thomas – secured a more than $80M bridge loan to push along construction on the retail mixed-use portion of the $2B, 175-acre project in Frisco, a northern suburb of Dallas. Although Thomas has been focused on signing retail tenants, the project will encompass up to 6M SF of office alone. Thomas declined to comment on the AIG deal.
Atlanta has had its share of corporate consolidations and headquarter relocations in recent years. Aside from Mercedes-Benz, which moved its headquarters from New Jersey to an underway campus in Sandy Springs, State Farm shook the office market by spearheading a massive corporate campus in Central Perimeter that is nearing completion, encompassing more than 1M SF.
Dallas also is home to an 8,000-employee State Farm office hub at KDC's 2M SF mixed-use CityLine project in Richardson. KDC also developed several other corporate headquarters and regional campuses such as Toyota, Liberty Mutual and FedEx.