Trophy Assets Anchor Buckhead’s Office Market

Buckhead’s office scene is proving its strength at the top end. Even with vacancy rates near 30%, the market is splitting: trophy, move-in-ready assets continue to attract tenants, while dated buildings sit empty.

Novelis’ 2023 move to One Phipps Plaza shows companies are willing to pay for quality. While average Class A rents sit around $39 per square foot, the best properties are fetching nearly $50, rivaling Midtown. With no new office construction in the pipeline, scarcity is boosting the value of well-capitalized portfolios.

Competition is tight. JPMorgan Chase is seeking 175,000 square feet of amenitized space in Buckhead, a challenge given limited availability. Landlords are countering with spec suites, flexible terms, and reduced fit-out costs to meet tenant needs.

Still, leasing activity remains healthy. AT&T renewed nearly 73,000 square feet at Lenox Park, and Brio Real Estate leased 26,000 square feet at Phipps Tower. These deals show quality properties can perform even as overall vacancy stays high.

Recent sales of Piedmont Center, Atlanta Financial Center, and Lenox Park at discounted prices point to opportunities for reinvestment. Many are watching Banyan Street Capital’s plans for the Atlanta Financial Center as a signal for how older assets can be repositioned.

For employers, Buckhead remains a prestigious headquarters location if you act early and strategically. For landlords, differentiation through amenities, flexible terms, and capital improvements is key to staying competitive.

Read the full story here: Buckhead market report: Commercial real estate trends and insights (Atlanta Business Chronicle)