There’s a lot of uncertainty about the future of the office market.
Even so, some companies are still signing big leases.
Here are several notable office leasing deals this year, stretching from Atlanta’s central business district neighborhoods to suburban cities:
- Fintech giant Global Payments (NYSE: GPN) completed a 206,542 square-foot lease at 5595 Winward Parkway in Alpharetta, the largest leasing transaction this year, according to real estate services firm Colliers International. Global Payments recently added another 21,790 square feet, according to Colliers’ Director of Research Scott Amoson.
- Global aluminum products company Novelis decided to remain in Buckhead, but it will move into 95,742 square feet at One Phipps Plaza, a 13-story office tower under construction at luxury mall Phipps Plaza. Novelis’ move from Two Alliance Center — a 29-story tower finished just over a decade ago — is a clear indication of a flight to amenities, more than it is a flight to quality.
- Centene (Peach State Heath Plan), a St. Louis-based managed care company, agreed to lease 94,222 square feet at 1100 Circle 75 Parkway near The Battery in Cobb County.
- Tax Wise, a tax and accounting company, moved into 87,556 square feet of space at 225 Chastain Meadows Parkway in Kennesaw.
- Intuitive Surgical, a fast-growing robotic surgery company, signed a 64,279 square-foot lease at 5400 Triangle Parkway. It is the largest in Peachtree Corners since 2016.
- FanDuel, a 12-year-old gambling, sports book and daily fantasy entertainment company, is moving into a 66,971 -square-foot space at Ponce City Market where it will join Twitter and HowStuffWorks Inc. as tenants.
- Service Master Inc., an Atlanta-based home services company, moved into a 53,400-square-foot space at 1 Glenlake Parkway.
Despite those deals, leasing activity remains well off the pace of 2019 and 2018, said Transwestern Vice President of Research Keith Pierce.
“Even as some companies make large, long-term space commitments, we are still seeing many smaller office users wait for more information before making their lease decisions,” Pierce said.
Leasing volume is down 30% from pre-pandemic levels, according to CoStar.
“Activity has improved slightly over the past few quarters, but we’re still well below the metro’s typical leasing volume before the pandemic,” said CoStar Director of Market Analytics David Kahn.