One of Buckhead's largest office landlords is breaking ground on another project in the neighborhood, but one that is more scaled back from the skyscrapers it already owns.

Highwoods, in a joint venture with Atlanta-based Brand Properties, expects to break ground this quarter on a 135K SF boutique office building at 2827 Peachtree Road, an empty lot next to Fellini's Pizza, just south of the Buckhead Village. The $79M project, of which Highwoods owns 50%, is already more than 60% pre-leased to multiple undisclosed tenants, according to a Highwoods press release.

The move comes at an interesting time for office landlords in Buckhead. The submarket saw companies vacating 1.2M SF more space than they leased through November 2021, the Atlanta Business Chronicle reported, citing data from Lincoln Property Co.  The neighborhood is also in the midst of a turbulent political moment, as factions within the community are pushing to make Buckhead its own city.

“The strong leasing reception at 2827 Peachtree is an endorsement of the property’s blend of a boutique yet efficiently designed office building with a wide array of amenities, both within the building and in the surrounding neighborhood,” Highwoods CEO Ted Klinck said in the release.

Highwoods officials declined to comment and Brand officials didn't return calls seeking comment on the project.

Highwoods owns more than 2M SF in the Buckhead submarket, including One and Two Alliance Center, Monarch Plaza and Monarch Tower. Highwoods said the building is scheduled for completion by the third quarter of 2023, and expects its rent roll to be stabilized by the start of 2025.