And what this deal says about the market’s office leasing trends.
Eversheds Sutherland has leased more than 94,000 square feet of office space at Bank of America Plaza in Midtown Atlanta. CP Group is owner of the property.
CBRE’s John Schlesinger represented the tenant, and his colleagues Jeff Keppen and Nicole Goldsmith represented the landlord.
This makes for 170,000 square feet leased at the building in the past six months, including four new tenants, one renewal and two expansions. Bank of America Plaza is renowned for being the tallest building in the Southeast, with nearly 1.4 million square feet of Class A workspace.
This deal extends the sector’s overall momentum this year after last year’s leasing activity met pre-pandemic levels, according to Savills.
So far this year in Atlanta, Avison Young reported that only 12 percent of law firms that have signed deals are downsizing their space, 23 percent are expanding and 26 percent are maintaining their original square footage when renewing their lease. The remaining 39 percent comprises new deals, which include new tenants and locations.
This trend is anticipated to continue since law firms are a heavy office-using industry—the third-busiest sector according to Avison Young’s Office Busyness Index.
While a couple of tenants announced major downsizes within Atlanta, this breakdown and comparison shows that law firms, whether they have an Atlanta presence or are new to the area, are currently active in the market and making moves on committing to office space, according to Avison Young’s analysts.
“Atlanta has seen an influx of new-to-market and existing law firms expanding their presence as the city continues to capitalize on its pandemic-induced population boom,” Rick Nash, principal, consulting & advisory tenant representation occupier services, Avison Young, Atlanta, told Commercial Property Executive.
The region benefits from a strong talent pipeline with many universities and law schools, Nash added. “Peachtree Street in Midtown has become a hotbed for office leasing activity, including law firms, given the multitude of residential, entertainment and dining options as employers look to recruit talent and encourage employees to return to the office.”
Atlanta’s strong office leasing activity
Cushman & Wakefield reiterated Atlanta’s stellar second half, reporting that the market saw 226,500 square feet of leasing activity in the third quarter, higher than the first two quarters combined.
Atlanta’s legal leasing levels in the first half of 2024 were 41 percent lower year-over-year compared to 2023. However, strong leasing activity from firms in the market, along with Morris, Manning & Martin’s 104,000 sf relocation—the largest lease nationally in the third quarter of 2024—has tipped the scales, placing Atlanta’s legal leasing activity 29 percent higher year-over-year than it was through the third quarter of 2023.
Despite the shift toward flexible work arrangements, prestigious law firms continue to commit to substantial office spaces in prime locations, recognizing the importance of in-person collaboration and the need for secure environments to handle sensitive information
This article was written by Richard Berger and originally appeared in Commercial Property Executive