“These Advancements are Not Special to Atlanta. Enterprise-wide, We’re Continuously Examining Our Realty Portfolio to Identify Opportunities to Make Better Use of Underutilized Office,”– AT&T In a blow to 2 Atlanta office submarkets, AT&T will vacate all the area it inhabits at its namesake AT&T Tower in Midtown and two places in Buckhead. The telecom services huge inhabits 1.2 million square feet in the 49-story Midtown office tower alone.
All told, the relocations might discard as much as 2.5 million square feet of area on the office market by early 2020. The main motive: cost savings. “These relocations will conserve expenses and bring our teams into main areas,” an AT&T executive said in a memo to managers.
Developers fasted to point out that AT&T’s choice to take out of the Midtown tower was not unforeseen.
“The marketplace has known for years that AT&T is abandoning the majority of the structure, so the reliable impact of them leaving all of it is minimal to the market,” Selig Enterprises Executive Vice President Chris Ahrenkiel tells CoStar News. He added that the 37-year-old workplace tower will not present competition to any brand-new or scheduled Class A towers. (Selig is preparing a prime Midtown site for a significant new development that will consist of 650,000 square feet of Class A workplace.)
Particularly, AT&T stated it prepares to leave AT&T Tower at 675 W. Peachtree St. in Midtown, 575 Morosgo – likewise known as Main Street – at Lindbergh City Center, and 1055 Lenox Park Blvd. in the Buckhead submarket. One of the Lindbergh towers is the home of AT&T’s Cricket Wireless service.
AT&T revealed the modifications Tuesday by means of emails to managers and staff members. Lance Skelly, a director of corporate communications at AT&T, verified the relocations in a declaration late Tuesday. He stated the company thinks the consolidation of offices will “have very little impact on our staff members and operations found here.”
Skelly likewise explained that many AT&T employees will simply move from one building to another in Lenox Park and others in Midtown will relocate only a brief distance away.
“The developments are not unique to Atlanta. Enterprise-wide, we’re constantly evaluating our property portfolio to identify opportunities to make much better usage of underutilized workplace,” AT&T stated in the statement. “Moves like this reduce our company’s business expenses while creating more collective workplace for our employees.”
In an e-mail with the subject line, “Relocations ahead for Atlanta office,” an AT&T movement and entertainment executive stated, “Ahead of the official notification, I want to provide some context for you. AT&T and Cricket will keep a strong existence in Atlanta,” the executive, Rasesh Patel, stated in the message.
Patel said the company prepares to consolidate staff members in other Atlanta-area structures, including Midtown 1 and 2 office towers at 754 and 725 W. Peachtree St., and within the firm’s Lenox Park school at 1025 and 1057 Lenox Park Blvd. and 2180 Lake Blvd.
. In addition to the 1.2 million square feet AT&T inhabits in its namesake tower at 675 W. Peachtree, the company likewise has 437,500 square feet in the connected eight-story assistance center. At Lindbergh City Center, AT&T rents 477,500 square feet in both Tower I and Tower II for a total of 955,000 square feet. 1055 Lenox Park is a 103,229-square-foot office complex.
This is a developing story. Please return for updates.
UPDATE 1: Story upgraded to include overall amount of area AT&T occupies in the AT&T Tower and to determine buildings where it prepares to combine Atlanta-area staff members.