When I first started covering commercial real estate in Atlanta in 1996, everyone told me companies would pay a premium for a “Peachtree address” – whether it be Peachtree Street downtown or in Midtown or Peachtree Road in the heart of Buckhead. (But Peachtree Industrial, no so much…)
A new report from JLL proves that this remains the case nearly two decades later, even as trophy office towers pop up on adjacent streets and in close-in suburban submarkets. (The Wilbert Group represents JLL Atlanta.) Office rents on the Peachtree Spine average $32.33/square foot, according to the JLL report. That’s 10 bucks a foot more than for the average space in Atlanta. (Click here to see for yourself.)
The JLL report bodes well for North American Properties, a client of The Wilbert Group. Just last month, NAP and Lionstone Properties acquired Colony Square, above with Rudolph the Red-Nosed Reindeer, and now has two office towers directly on Peachtree at 14th Street (aka Atlanta’s Main & Main).
Now you know why buildings such as Cousins Properties’ Promenade, which fronts 15th Street in Midtown, clings to a Peachtree Street address. It’s also why John Hancock’s Phipps Tower, which fronts Lenox Road, maintains a Peachtree Road address. And Tower Place 100, the building adorned with neon-green lights is at 3340 Peachtree Road (though if you’re walking along Peachtree in Buckhead, you might have a hard time finding it.)
But, across the Buckhead Loop, One, Two and Three Alliance Center (above) use a Lenox Road address – likely because the Monarch Centre towers and Ritz-Carlton stand in owner Tishman Speyer’s way.