Race to be Atlanta's Next Office Tower

Piedmont REIT has given itself two chances to be next out of the ground.

Piedmont REIT's George Wells (here with his wife Karen) chatted with us about two entries in a company presentation: Glenridge Highlands III and The Gavitello. Both could be the company's next Class-A mid-rise developments.

George feels Central Perimeter is ripe for a new tower. As of Q3, CP landlords have leased more than 400k SF of Class-A space, and the vacancy rate is below 10%. But what's more appealing to developers is the sheer lack of contiguous blocks of space. According to Colliers', the largest blocks of office space in Central Perimeter are 100k to 150k SF. And there are only two of them. On top of that, there are fewer than 20 blocks of 30k SF or larger spaces in the whole submarket. The proposed Glenridge Highlands III, a 300k SF building that's part of the Glenridge Highlands development (including a proposed restaurant), could field those prospects.

George says Class-A rents should rise to the mid-$30/SF range in Central Perimeter before shovel hits dirt. Some are close, he says, but not quite there. It's second land holding, called The Gavitello (pictured), will be developed into a 250k SF office building next to The Medici Building at the Piazza at Paces off Northside Drive in Buckhead. “That one's probably a little further out,” George tells us.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Atlanta Newsletters
Related Stories

JVP Development Is Betting $37M Of Its Own Money That Frisco Is Ready For Spec Office

Hedge Fund Bids $88M For Spirit Airlines' Former HQ

Emory Takes Over Proton Center For $82M: The Atlanta Deal Sheet

Oyster Point's Second Phase Half-Leased As Kilroy Navigates Soft Lab Demand

Dewberry's Midtown Eyesore Quietly Resolves $75M Mortgage

BXP Closes In On Next D.C. Office Development As It Shrinks Assets

Clarion Under Contract To Sell 18-Story Seaport Office Tower

Oil Company Expands Again At Cash Register Building

BXP's 343 Madison Lands $1.2B Loan, Nears Deal With Equity Partner

D.C. Sues To Block HUD Headquarters Move To Virginia

Ken Griffin Completes Takeover Of Brickell Block, Setting Stage For $2.5B Megaproject

Private Equity Firm Buys Former Texas Instruments Campus For New Headquarters