Putting The Office Market in Perspective

By Kirk Diamond, Senior Vice President, Carter

Atlanta (April 28, 2010) – The announcements over the last year and a half of corporate headquarters moving to the Atlanta region creates momentum in our office market that other cities envy.

Kirk diamond The moves, however, are not near enough to handle to record amount of office vacancy, which stands at more than 39 million square feet, according to reports.

 When you total up the amount of square footage reported to be involved in the last three headquarter announcements, it comes out to about 650,000 square feet.

First, let’s take a look at some of the deals that made recent headlines and what impact they have had on the office market.

Ohio ATM manufacturer NCR announced it would move its headquarters to Duluth, taking over 400,000 square feet of office space. The company, which also makes self check out scanners, is expected to bring 1,250 jobs to the metro area. NCR has also opened both a global Center of Excellence in Peachtree City and a manufacturing facility in Columbus within the past 12 months.

International aluminum producer Novelis is moving its North American headquarters to Two Alliance Center, signing a 14-year, 100,178-square-foot lease. The company has said that it will employee about 220 people in the space, but the move transfers some of its employees from a 36,308-square-foot space in The Lenox Building. Still, that is more than 60,000-square-feet of office space taken off of the Buckhead submarket.

And last year, Fortune 500 electronic commerce and payment processing firm First Data Corp. announced plans to relocate its global headquarters to Atlanta. The firm took 180,000-square-feet in the central perimeter submarket according to reports.

In the context of the economic recovery, job growth, etc., these corporate relocations are huge in one sense and not so huge in another.

From a “perception” standpoint these announcements are huge, even though purely from a numbers standpoint they are a mere drop in the bucket.

Activity breeds activity and each time the metro Atlanta region can boast of such a corporate relocation, it feeds the potential for future opportunities. The fact that very few other regions of the country can ever announce such positive news underscores Atlanta’s enviable position in this area.

With cost cutting and maximizing efficiencies staying at the forefront of corporate responsibility, we feel Atlanta, which is ranked the 2nd least costly region in the country for doing business, will continue to enjoy in migration for many years to come.

Leave a Reply

Your email address will not be published.