Downtown Atlanta
ATLANTA Downtown
Where It’sAt!
DOWNTOWN
Makes HEADL INES
Georgia State, developers, complete purchase of Turner Field – Atlanta Business Chronicle Startup CallRail expands in downtown Atlanta, plans 100 jobs – Atlanta Business Chronicle South Downtown could get massive boost with eight-block development – Atlanta Business Chronicle Downtown’s Kiser Building to be reborn as apartments – Curbed Post Properties develops its first Downtown project – Atlanta Business Chronicle Why tech tenants are attracted to Atlanta’s urban core – LinkedIn Study: Atlanta is nation’s 3rd greenest city – Atlanta Business Chronicle The Stitch: An ambitious proposal to build parks and housing above the Downtown Connector – Atlanta Magazine Incubator for women entrepreneurs coming to Flatiron Building – Atlanta Business Chronicle
CONTENTS Table Of
Overview
Downtown Investments
Major Projects Downtown
Why
DOWNTOWN?
26,850 Population
154,767 Downtown Jobs
50,972+ Georgia State Students
40,527 average MARTA weekday ridership
$4.9B Investment Pipeline 2017-2022
88 Average Walk Score
Q3 2017 Downtown Submarket SNAPSHOT
$
59,033 SF NET ABSORPTION
21% VACANCY RATE • Down 105 BPts YoY • Lowest since 2009
$26.75 OVERALL RENTAL RATE • Up 13.3% from one year ago
-0- SF NEW BUILDING DELIVERIES • 124,000 SF under construction
108,404 SF LEASING ACTIVITY • Down 6% from Q2
-0- SF INVESTOR SALES
Data as of Q3 2017 | Source: Cushman & Wakefield Atlanta Research
Recent Downtown DEALS
SIGNIFICANT OFFICE SALES Building
LARGEST AVAILABLE CONTIGUOUS BLOCKS CLASS A OFFICE Square Feet Building Asking Rate 1 305,127 Bank of America Plaza $32.50-$35 FS
Buyer
Sales Price
Date
Norfolk Southern Former HQ 99-125 Spring St
99-125 Spring St Atl Owner, LLC $25M ($62/sf)
Sept. 2017 Sept. 2017 June 2017 May 2017
The Grant Building
Kramer Real Estate
$7M ($47/sf)
American Cancer Society
Carter Validus Zeller Realty
$166M ($167/sf) 79.4M ($128/sf) $267.5M ($163/sf)
34 Peachtree (possible conversion to hotel)
100 Peachtree 191 Peachtree
2 161,233
$19.50 FS
Banyan Street Capital Newport US Real Estate
October 2016
Over 50 South Downtown Buildings SIGNIFICANT OFFICE LEASING Tenant
Estimated $500M Multiple 2017 dates
3 149,821 Bank of America Plaza $32.50-$35 FS 4 130,629 250 Williams Street $23.50-$24 FS
Building
Square Feet
Sign Date
5 126,464 Harris Tower @ Peachtree Ctr.
$23.50 FS
Anthem
Bank of America 100 Peachtree SunTrust Tower Peachtree Center Centennial Tower
148,192 100,000 65,000 49,812 20,000 38,800
3Q 2016 3Q 2016 2Q 2016 1Q 2017 3Q 2017 3Q 2017
Georgia's Own Credit Union
Drew Echl Farnham
Atlanta Regional Commission
C.H. Robinson
Boston Consulting
100 Peachtree
Downtown Development PIPELINE
Under Construction/Planned Development (2017-2020)
Recently Completed Development (2016-2017) Total investment $593 Million Office Space 72,190 SF Retail Space 79,070 SF Institutional Space 287,500 SF Student Beds 1,408 Housing 171 units Hotel 313 rooms
Total investment
$4.3 Billion
Office Space
1.8 Million SF
Retail Space
1.5 Million SF
Institutional Space
2,767,000 SF
Student Beds
1,390
Housing
10,347 units
Hotel
2,720 rooms
Downtown Office Buildings Under Construction
Project Name
Address
SF
Type Estimated Delivery
The Willoughby 746 Willoughby Way NE 61,000 Class A
2018
The Stockade
752 Glenwood Ave
38,000 Class B
2018
The Stable
750 Glenwood Ave SE 25,000 Class B
2018
Downtown is the Region’s MOST URBAN Environment
1.8 Million SF of commercial space 895 retail shops, eateries & bars 9 MARTA stations Over 3 million hotel room nights demanded 15 million visits annually to Downtown
Downtown is experiencing a once in a generation rate of growth (development pipeline of over $4.9 billion in new projects) Downtown Core has potential to see significant population & employment growth over the next 15 years Potential to add over 15,000 residents & 30,000 jobs
Downtown
Downtown
Downtown EMPLOYMENT
COMPANIES WITH DOWNTOWN HQ Company
Address
Site Type
Coca-Cola Co
1 Coca Cola Plz NW 80 Jesse Hill Jr Dr SE
HQ HQ HQ
Grady Health System/Memorial Hospital
Georgia State University
33 Gilmer St SE
Emory University Hospital Midtown
550 Peachtree St NE 133 Peachtree St NE 191 Peachtree St NE 241 Ralph McGill Blvd NE
Single Site
Georgia-Pacific LLC
HQ
Deloitte LLP
Regional HQ
Georgia Power Co
HQ HQ HQ HQ
Turner Broadcasting System Inc. Atlanta Medical Center/WellStar
1 CNN Ctr NW
303 Parkway Dr NE
CNN News Group
1 CNN Ctr NW
EY
55 Ivan Allen Jr Blvd NW 303 Peachtree St NE 265 Peachtree Center Ave NE
Regional HQ
KPMG LLP
Branch Branch Branch
Marriott Marquis Hotel Hyatt Regency Atlanta
265 Peachtree St NE 250 Williams St NW
InComm Inc
HQ
Omni Hotel at CNN Center
100 CNN Ctr NW
Regional HQ
Hilton Atlanta
255 Courtland St NE 250 Williams St NW
Branch
American Cancer Society
HQ HQ
Southern Co
30 Ivan Allen Jr Blvd NW 600 Peachtree St NE
Bank of America SunTrust Bank
Regional HQ
303 Peachtree St NE
HQ HQ
Georgia World Congress Center
285 AY Blvd NW
Westin Peachtree Plaza
210 Peachtree St NW 100 Decatur St SE 100 Peachtree Street
Branch Branch
Georgia State University Library Georgia’s Own Credit Union
HQ (2018 projected)
1,800 jobs 800 jobs Downtown NEW EMPLOYMENT
375 jobs by 2020
200 jobs
230 jobs 500 over 10 years
70 jobs
INVESTMENTS
Investment in SOUTH DOWNTOWN
Total estimated investment: $500M Developer: Newport U.S. Size: 750K SF total (includes 325K SF of retail and over 50 buildings, encompassing 12 acres over 8 blocks) Transit: Five Points/Garnett MARTA Eastside TAD support: $8M Estimated completion Phase 1: 3Q 2021 Newport U.S. Real Estate Planning for Redevelopment
Fun Fact: The Rexall Drugstore once served as an album cover for Paul McCartney
Investment in SOUTH DOWNTOWN
Peachtree & Mitchell St.
Master plan for the district will preserve the culture & charm of the area along Peachtree, Forsyth, Mitchell & Broad streets dating back to the mid 1800s
Future
Now
Broad & MLK St.
Broad St. Reimagined
Future
Now Peachtree & Mitchell St.
Now
Future
Investment in
SOUTH DOWNTOWN
Underground Atlanta
Underground Atlanta Investment
Total estimated investment: $161M Developer: WRS Inc. Size: 12 acres (includes 325K SF of retail and 25,230 SF of office)
0.9"
Transit: Five Points MARTA Eastside TAD support: $6.5M Estimated completion: 4Q 2023
Investment in
The Avery Underground Atlanta SOUTH DOWNTOWN
Underground Atlanta Housing
Total estimated investment: $36.7M Developer: Prestwick Companies Size: 4-story (includes 180 units of affordable housing) Transit: Five Points MARTA Eastside TAD support: $3.6M Estimated completion: 3Q 2020
Investment in SOUTH DOWNTOWN
Mercedes-Benz Stadium
Total estimated investment: $2B Developer: GWCC & AMB Sports & Entertainment Group Size: 72,000-80,000 Seats Transit: GWW/Phillips Arena/CNN Center MARTA Contributions: City of Atlanta $200M in stadium bonds + tax revenues; State of GA $40M for parking expansion
Investment in SOUTH DOWNTOWN
Phillips Arena
Total estimated investment: $195M Developer: Atlanta Hawks Size: 18,118 Seats Transit: GWW/Phillips Arena/CNN Center MARTA Estimated completion: 3Q 2018
Investment in
SOUTH DOWNTOWN
The Gulch Redevelopment
Total estimated investment: $550M Developer: CIM Group Size: 80,000 SF Retail Transit: Five Points MARTA Estimated completion: 3Q 2018
Norfolk-Southern Former HQ
Office Courtyard Vision Investment in GSU
Turner Field Redevelopment Carter/Oakwood/GSU
Georgia State Stadium new home for Panthers football
GSU enrollment 50,972 in 2016 (up from 32,082 in 2015)
Plaza Vision
Office Courtyard Vision
Georgia State Stadium
Investment in ATLANTA STREETCAR
Atlanta Streetcar Vision
Total estimated investment: $1,093M Developer: City of Atlanta Size: 2.7 Mile Loop Transit: Peachtree Center MARTA Estimated completion: Long-term vision includes a N-to-S route from Brookhaven to Fort McPherson, and an E-to-W route from The King Center to Centennial Olympic Park
Investment in DOWNTOWN Peachtree Center 100 Peachtree The Grant Building
The Hurt Building
Ownership: Banyan Capital An ICON reborn! Renovations are officially underway, including a $40M estimated investment to include “The Hub,” and renovations to common areas and lobbies The Hub: a new vision for the plaza and retail will transform this landmark project and modernize it with stunning new finishes & a revamped retail lineup
Ownership: Zeller Realty Experiential programming underway Activate the plaza - blend the corporate environment into the vibrant Fairlie-Poplar
Ownership: Kramer Real Estate Investments & H2 Capital Invest $7M to upgrade and increase leasing from 50% Modernization will retain authentic features, including marble finishes Owner plans to return 100-year-old building (one of Atlanta’s first steel-framed skyscraper) to its former prominence
Ownership: Gamma Real Estate Planned $4M historic makeover to include exposing historic marble interior lobbies Modern, sustainable design to offer a diverse array of tenant space including contemporary lofts, co-working micro units and traditional offices suites
neighborhoods with public art, live entertainment & other programming The “SPUR” has launched an innovative spec office program on the 3 rd floor. Completion expected early 2018
New Starbucks opened on ground floor
Investment in DOWNTOWN
Medical Arts Building Renovation
Total estimated investment: $40M Developer: Cleveland-based Global X Size: 85,000 SF 15-story class A office Transit: Civic Center MARTA Estimated completion: 3Q 2019
Investment in SONO DISTRICT
Total estimated investment: $5.3M Developer: SoNo on Peachtree Size: 28,751 SF (four office buildings) Acres: 0.66 Transit: North Avenue MARTA 489, 493 & 495 Peachtree Street and 496 Courtland Street
Total estimated investment: $5.3M Total estimated investment: $10M Developer: Central Atlanta Progress Size: 30,000 SF Acres: 0.6829 Transit: North Avenue MARTA 477 Peachtree Street (former Peachtree-Pine Shelter)
PROJECTS DOWNTOWN
Downtown MASTER PLAN
The Downtown Master Plan presents 25 recommendations for goals to reach by 2030, including the following:
10,000+ trees planted
New bike lanes
New housing & retail
Revitalize concrete plazas into welcoming spaces (plants, art, etc.)
Downtown has 96,000 parking spaces with 30,000 unused on a daily basis – eliminate & consolidate parking lots & decks to drive more transit use
Preserving Downtown’s historic buildings
The STITCH
The Stitch: a “Cap” over the 1-75/85 Connector at Peachtree Street to construct a platform over the highway. The objectives:
Create a vibrant public realm with quality civic infrastructure, open spaces, sustainable living
Create urban greenspace & new development pad sites
Ivan Allen Jr Blvd
Generate opportunity for transit-oriented development at Civic Center MARTA station – reposition as major transit hub for the city Include a 3-acre greenspace with a market and art walk, mixed-use urban park and more
West Peachtree
Courtland St
Peachtree Ctr Ave
ARTS & ENTERTAINMENT District
A neighborhood activation & economic development project with these objectives:
Create diverse & active market place for commerce & entertainment
Create light, vitality & activity through multimedia signage
Support commercial investment & enhances public gathering spaces
Provide platform to market Atlanta as a premier host city
Reflect vibrancy, diversity & creativity of the City
Stimulate blank walls on buildings & parking decks with innovative & creative media techniques in an unified way
Increase economic activity, including real estate investment
Permit new/upgraded outdoor advertising signs
Promote Downtown’s many events
ARTS & ENTERTAINMENT District
Much of Downtown will be part of the new Arts & Entertainment District, with new signage guidelines that will allow for Times Square-style digital media & entertainment
CENTENNIAL PARK District
Centennial Olympic Park (COP) has become the center of dynamic downtown entertainment district via: New museums, attractions & commercial and residential development have contributed to an urban renaissance around the 21-acre park
Southern Company Amphitheater Completion August 2018
Fountain of Rings Plaza Completion December 2017
Economy boosted with more the $2.3 billion in new investments to date since 1996
New Special Event Center Completion January 2019
Bake Street Corner Completion August 2018
$725 million either under construction or in the pipeline
Paralympic Plaza Completion August 2018
West Lawn Promenade Completion December 2017
Special Event Center
GWCC 2020 VISION
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4 5
3
2
6
10
12
8
811
1
9
New Development Renovations Upgrades & New Greenspace
2020 VISION GWCC
3
2
1
Convention Center 4-Star Hotel
Mercedes-Benz Stadium
Westside Greenspace
PATH Foundations Updates Decommission structure of the Metro Atlanta Chamber & return the 3 acres to greenspace Southern Co Amphitheater upgrade Centennial Olympic Park Event Facility – 8,600 SF (6K SF indoor, 2,600 SF outdoor terraced seating & restrooms) Centennial Plaza – new iconic artwork & legacy of the Centennial Olympic Games will function as a new gateway into both sides of the park’s greenspace Baker Street Corner – new gateway into the park aim to increase visibility and will open as a major entry point with a new water feature, sculpture and landscaping
8 7
4
5
10 9
GWCC Bldg. B & C 1M SF Contiguous Facility
GWCC Flooring Updates
6
11
12
GWCC Bldg. B $3M Renovation
ATLANTA Downtown
Where It’sAt!
CATHY SHEEHAN Senior Associate 404.853.5233 cathy.sheehan@cushwake.com
JOHN IZARD Executive Director 404.853.5311 john.izard@cushwake.com
www.cushmanwakefield.com www.cushwakeatlanta.com 1180 Peachtree Street NE, Suite 3100 Atlanta, GA 30309 | USA 404.875.1000
Thank you to the following information sources: Central Atlanta Progress Atlanta Business Chronicle Costar
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