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MAY 2021 ISSUE
INSTITUTIONAL PROPERTIES
THE
BRIGHTER 
SIDE

CONTEMPLATIONS FROM THE COOLER

Atlanta continues to attract innovation and investment, including some bold new developments slated for the urban core and the BeltLine. This is building on the economic and capital markets momentum we’ve seen cumulating over the last couple of quarters. Of course, our team (and savvy investors) are eager to source data to support what we hear around the in-person watercooler conversations (yep! those are happening again!) and seen teased in the headlines week after week.

CBRE Research has a full suite tracking metrics, but one that struck a chord to share in this newsletter is our Notable Tenant Movements that focuses on 20k SF tenant movements since 2018. Here are a couple of key takeaways. These are mantras we’ve been hearing, but supported by some compelling stats.

  • If it was happening before the pandemic, it is accelerating in the recovery. 32% of deals were new to Atlanta pre-COVID; 40% since January 2020 
  • Midtown is still a beacon.54% of new deals to Atlanta since January 2020 went to Midtown
  • Don’t discount the northern ‘burbs! Central Perimeter, Cumberland, and North Fulton captured 38% new Atlanta tenants since January 2020
HERE'S THE GOOD NEWS:
Developer secures financing for north Midtown residential tower.

Greystar has landed $67 million in construction financing for a new 32-story, 280-unit multifamily tower set to rise at 17th and Peachtree. The project is set begin construction next month, and will continue the trend of mixed-use densification in the arts district of Midtown. (https://bit.ly/3nToZFF)

Building a More Sustainable Real Estate Portfolio: Microsoft Pursues LEED v4 Gold Certification for Atlantic Yards Campus.

Microsoft (NASDAQ: MSFT) shares its perspective on building and operating sustainable corporate real estate campuses throughout the US. Their new Atlantic Yards project in Atlanta used the Embodied Carbon in Construction Calculator (EC3) tool to reduce embodied carbon during construction and is currently developing more sustainable initiatives to be implemented, such a s rooftop herb gardens and a rooftop bee habitat. (https://bit.ly/3vxBWYq)

New Towers to Soar 35 and 37 Stories Over Midtown Skyline.

Toll Bros., one of the country’s largest residential developers, plans to fill the project with student housing and apartments. The height for both towers includes 10 stories for parking. The student housing tower includes more height than when the project was first was proposed two years ago, rising from 31 to 35 stories. When originally proposed to the Midtown design review committee in 2019, the height of the towers did not include the 10 stories for parking. The added stories to the student housing tower are due to "economic viability," according to Toll Bros. spokesperson John M. Piedrahita. (https://bit.ly/2RjRTTh)

New Westside Project to Feature 1.5M SF Data Center, Apartments, and Restaurants.

Data center giant QTS (NYSE: QTS) continues the expansion of its massive Westside Atlanta campus with plans for a 1.5-MSF data center surrounded by 640k SF of office space, 70k SF of retail and restaurant space, and 400 residential units. (https://bit.ly/339q56X)

Asana Partners Details Plans for Krog District Redevelopment.

The forthcoming redevelopment of a prime Inman Park property will bring more restaurants, retail, and office space to the Atlanta Beltline's Eastside Trail. Despite the economic fallout from the novel coronavirus pandemic, developers are optimistic the project will be another BeltLine success story. (https://bit.ly/3eU8y8b)

A New 40-Acre Project Could Become One of the Largest on Atlanta’s Westside.

Developer Tenth Street Ventures last year purchased just over 15 acres at 1060 Donald Lee Hollowell Parkway in Bankhead for roughly $20M, according to Fulton County property records. Now it's assembling 25 more acres, including land along the Westside Trail. (https://bit.ly/2SpuVe4)

WILL YOWELL
Vice Chairman
will.yowell@cbre.com
T +1 678 428 0572
JUSTIN PARSONNET
Executive Vice President
justin.parsonnet@cbre.com
T +1 404 234 1130
JAY O'MEARA
Executive Vice President
jay.omeara@cbre.com
T +1 770 317 3843
RYAN REETHOF
Vice President
ryan.reethof@cbre.com
T +1 770 630 4213 
DARICE ROSE
Director
darice.rose@cbre.com
T +1 404 542 2046
JACKY CHENG
Senior Financial Analyst
jacky.cheng@cbre.com
T +1 678 333 4218
DEVON HUSEMAN
Senior Financial Analyst
devon.huseman@cbre.com
T +1 504 390 5924
ALEXIS GALLMON 
Operations Analyst
alexis.gallmon@cbre.com
T +1 202 905 1742
CBRE Atlanta Institutional Office Properties is a team of senior Capital Markets professionals that specialize in the sale, debt and structured finance placement, and recapitalization of institutional quality office properties throughout the Southeastern United States. For nearly 30 years, our team has advised the country’s most sophisticated and successful investors while providing best-in-class service, honest counsel and outstanding outcomes. We leverage our extensive transaction experience, real-time market intelligence and the unmatched CBRE platform to execute on our clients’ objectives. As a result, our team has built long-term client relationships and is the perennial market leader in the Southeast by market share and client satisfaction.

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