For a North Carolina-based office investor, it was nothing but net for a recent renewal deal at a Downtown Atlanta office tower.
The Dilweg Cos. inked a 54K SF renewal with the Atlanta Hawks basketball club at 101 Marietta St., a 36-story tower that is a five-minute drive from Philips Arena, the Hawks' home court. The deal keeps the Hawks at 101 Marietta, where the club's more-than-200 employees have been since 2004, for another eight years.
The Hawks' corporate offices also help to keep the 650K SF tower — which Dilweg purchased in 2015 — at 80% leased. CBRE Senior Vice Presidents Chris Port and John Dolan brokered the deal.
Dilweg recently spent $5M to update 101 Marietta St., including a new lobby, a new fitness center and a tenant lounge called “The Hub” that includes a pool table, kitchen and couches.
The Hawks deal is among the largest office leases executed in Downtown Atlanta this year, according to a recent Colliers International Atlanta report. Other big deals included Flexport's 50K SF lease at Bank of America Plaza, Herzig University's nearly 30K SF deal at The Hurt Building and Boston Consulting Group's 20K SF lease at 100 Peachtree.
“Expansions and new leases were abundant over the past three months, averaging around 10K SF per transaction,” Colliers officials said in the report. That activity has helped to push overall asking rents to nearly $26/SF, the highest level ever seen in the submarket.
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