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Commercial Real Estate in Peachtree Corners Stays Strong Through the Pandemic
The pandemic was not kind to certain sectors of the commercial real estate landscape.
Restaurants and small businesses shut down for a time, with some going out of business entirely. In some places, investor interest in office buildings, warehouses and retail centers dried up. Their vacancy rates leaped, and sales volume plummeted.
Then there’s the Peachtree Corners story, which is noticeably different.
Different approaches
“There was only a mild slowdown during the pandemic,” said Jennifer Howard, the city’s economic development director. “Our city is unique. We have taken a couple of different approaches to economic development here.”
That includes policy changes enabling mixed-use property developers to enhance their projects. An overlay district was created, and redevelopment incentives were put in place, under which developers can earn credits for greater density in return for adding such things as public art and trails and vehicle charging stations. Additional city enhancements have included partial support of the Curiosity Lab vehicle testing track, a startup incubator and coding school.
“I think you need to look at the fact that the city manager and the mayor and city council have been very welcoming to businesses,” said Brad Kuehn, President of Atlanta Office Realty, Inc. He gives additional props to the city’s emphasis on amenities such as parks and trails, walkability and Town Center.
What city officials see as a downturn instead of a disaster during the heart of the pandemic is borne out by a look at the numbers.
Take sales volume, for example. Howard quotes figures from the CoStar real estate information company. Total sales volume was around $160,000,000 in the first quarter of 2020, then it fell off as low as $25,000,000 the last quarter of the year, but it has quickly rebounded to $170,000,000.
Projects in the pipeline
Transactions happened and leases were signed even as COVID cases rose and many people stayed hidden away. “We had been pushing so much energy into the pipeline that even when things came to a halt, we still had projects moving forward and filling the pipeline,” is how Howard explained it.
One such “pipeline filler” was an investor group from Atlanta purchasing a 1980s-era strip shopping center at 7050 Jimmy Carter Boulevard, said Elliott Kyle, Vice President with Skyline Seven Real Estate.
He said that buyers backed off deals like that for a few months during the worst of the Coronavirus, but he added that’s been over for a while.
“We got some really good interest on it,” he said of the shopping plaza anchored by a closed fitness center, which he said would ordinarily be a tougher sell. A recent leasing flyer on the property shows well over half the spaces have been leased.
“It’s the quality properties that are getting snapped up quickly,” Kyle said. Those that flunk the quality test or are overpriced are the ones that are languishing, he indicated.
Readily available cash and fears about the near future are driving many deals, he said. “I think what it was, was that people were sitting on money (during the pandemic) and they needed to get a return,” Kyle maintained. Another factor is the prospect of interest rates rising and buyers wanting to lock in a favorable rate now.
Another signature project that developed as COVID raged involved healthcare staffing firm Soliant Health, which moved its headquarters to Peachtree Corners. They announced in August that they had signed a lease on a building at 5550 Peachtree Parkway in Technology Park. Some 400 jobs came with that.
Not sitting on its laurels for long, the firm announced a headquarters expansion in June and the addition of 200 more to the workforce.
Downward trend in vacancies
A number of other real estate transactions have come to a revitalizing Tech Park, including post-acute-care tech solutions firm Brightree renovating a 1970s building and moving its home base there. The deal finished in December of 2019, just before Coronavirus began its deadly spread.
Commercial real estate observers said transactions like the above demonstrate a market that ranges from “stable” to “active”, depending on who you talk to. Another sign of that is a vacancy rate that has steadily trended downward since the city incorporated nine years ago.
Again, with a nod to the Costar service, Howard said the current office, retail and industrial vacancy rate in Peachtree corners is 13.7%. She said that number edged up modesty during the pandemic to 14.5% and then dipped to 12.75% for a time.
“The vacancy rate actually decreased during the pandemic because of projects in the pipeline,” she said.
One factor cited in connection with vacancy rates is a number of smaller entrepreneurial firms locating in Peachtree Corners, plus larger corporations beginning to look at moving here from Atlanta addresses.
“Gentrification is happening there and as it relates to say, Buckhead, it’s a huge discount for an occupier,” said commercial real estate firm NAI Brannen Goddard Senior Vice President Rusty Bennett, citing Peachtree Corners lease rates that are about half of that of spots like Midtown and the Ponce City Market neighborhood.
Warehouse and office space
Industry executives also said that the warehouse piece of the commercial market is going very well around the metro area partly because of a tightening supply and also due to a thriving logistics marketplace segment. They maintain that a portion of that is due to conversion of such one-story warehouse facilities to office space.
Then there are projects pulling office space off the market and paring down the supply in Peachtree Corners, such as adaptive reuse ventures. One is at 5720 Peachtree Parkway, where an existing several-story office building and some one-story business condos will become a mixed-use development with a large residential presence.
City council member Weare Gratwick sounds a cautionary note about that trend involving aging commercial buildings, however. “Speaking as a council member, our challenge is balancing how much adaptive re-use of office product we should have against preserving office space,” Gratwick said.
He says while such factors as workers wanting to settle closer to their jobs is a driver, “the challenge is to balance that, because once you lose that office space it’s gone forever.”
Another factor cited is the city’s much-lauded Curiosity Lab, a public-private partnership aimed at attracting technology businesses and helping them grow. Kuehn, for one, thinks those companies will pull together and incubate, and that once they can stand on their own, they’ll go find office space.
“And many of them will stay in Peachtree Corners,” he maintained.
No sign of shortages
Even with absorption happening, local realtors and industry observers don’t see any kind of shortage of office space developing in the city. On the other hand, at least one observer of the market doesn’t foresee significant additions on the supply side.
Said David McEachern, the local director at Keller Williams Chattahoochee North, “what we’re not seeing is the development of new shopping centers or office buildings because there’s enough supply right now, even in the case of warehouses. That will help constrain supply to a certain extent.”
Meantime, he and others said investor interest is relatively strong at the moment, citing his listing on Holcomb Bridge Road for a 10,000 square foot office building. He said quite a few potential investors have come calling,“I personally think it’s a good solid market and we’re not going to see a bunch of new buildings created,” said McEachern. He and others point out that Peachtree Corners is, for the most, part built out.
There’s speculation within the industry on how this stew of factors will impact lease, rental and per-square-foot sale pricing. Bennett thinks that the combination of property being absorbed and solid interest on the part of investors and companies is contributing to higher lease rates.
Howard, with the city, has some numbers that appear to back that up, saying that there’s been a steady increase in rent prices in the commercial market, on the order of 2% to 4% a year. She said that last year was a bit slower than the long term, with growth of 2¼%.
Grappling with a new normal
Kuehn indicates the above numbers are important because “there are still people out looking to buy a building, but the majority of offices are leases.” When those leases come due over the next few years, a wild-card factor in all this is how companies might reduce their office space, having seen that at least some workers can do their jobs from home.
Local real estate people say the jury’s still out on that and probably will be for a few years. Said McEachern, “What will be interesting to see and, I think will get filtered out, is as those leases start to expire this year, next year and three to five years out, is what they do with their existing space. I think that’s going to constrain additional office building because we will probably see some reduction of square footage with people working at home more.”
Others foresee a somewhat different direction, with greater movement of employees back to their cubicles. “My gut feel is that, over time, people are going to gravitate being back more in the office than remotely.
It might take a couple of years, but I think that’s ultimately where we’re going to end up,” said
Tom Rhodes, partner and chair at Meadows and Ohly, a Peachtree Corners real estate firm specializing in healthcare facilities.
Gratwick — and others in the business world — point out that those working on their computers from home largely lose their shot at being mentored, building personal relationships and collaborating face-to-face with coworkers.
With the remoting trend, some think companies may reduce their square footage while having workers come in a day or two a week, sharing their space and working from home otherwise. Others say the trend toward open-plan office space will reduce square-footage needs.
As to what impact this would have on lease, rental and square-foot pricing in sales, it’s too soon for some to say, but Rhodes thinks it could force lease rates downward.
“Maybe we’ll see hoteling of office space,” he said. “It might not necessarily reduce square footage, but it’ll mean a reconfiguring and that space won’t increase as a firm grows.”
Up and coming projects
It’s safe to say Peachtree Corners officials are keeping that and other trends in mind as they celebrate new commercial projects coming online, one of them an Amazon logistics center at 4925 Avalon Ridge, another deal which developed during the worst days of COVID. The Black Creek Group real estate management firm purchased the property one year ago, leased it out to the retail giant and trucks are expected to be rolling this fall.
Other announcements may well be coming. McEachern tells of getting a call from a software company owner in the Peachtree Corners area. He says he and three others are looking to spend $2,000,000 to $5,000,000 on commercial locations.
The city’s live-work-play emphasis and focus creating jobs in tandem with places for workers to stay here has seemingly worked well to this point. Said Howard, “Our approach has been focused on innovation and fostering companies and on economic development through community development in creating a place where people want to live.”
SCB Construction Group, freshly rebranded from SteelCo, secures construction project with CGA Reps for new office HQ in Peachtree Corners
SCB Construction Group has announced a strategic partnership with CGA Reps to build a new office headquarters in Peachtree Corners. The project, encompassing approximately 26,000 square feet of innovative workspace, marks a significant milestone in advancing CGA Reps’ corporate vision while showcasing SBA Construction Group’s commitment to delivering transformative construction solutions.
In collaboration with Oakley Real Estate Partners — serving as developers of the project on behalf of CGA Reps — this venture reflects a united effort to bring cutting-edge design (from Smallwood architecture firm) and operational excellence to the commercial kitchen equipment industry.
The announcement follows several high-profile projects for SCB Construction Group in 2024, including a 72,500-square-foot manufacturing center and headquarters for Process Equipment & Controls, an impressive interior build-out for Courtesy Ford Conyers’ commercial service center and the Phase 1 completion for StoreEase Loganville — recently honored as a 2024 Smart Facility of the Year by Modern Storage Media.
A bold new chapter for CGA Reps
The new 25,890-square-foot headquarters is designed to be more than just a workplace — it is envisioned as an inspiring environment that serves both client engagements and employee creativity. CGA Reps is recognized as an industry expert in commercial kitchen equipment, representing leading manufacturers, warehousing, distributing and installing everything from fryers to commercial walk-in freezers.
The facility’s design reflects this expertise, featuring a dedicated approximately 9,000-square-foot showroom kitchen that will host equipment demonstrations, tradeshows and webinars. This dynamic space will allow CGA Reps to showcase its comprehensive product range and provide clients with hands-on experiences of the latest commercial kitchen innovations.
A standout feature of the project is its innovative approach to stormwater management. With the site comprising only three acres, sufficient space for a traditional detention pond does not exist. To overcome this challenge, the design includes an underground detention system located beneath the truck court to efficiently handle all stormwater runoff.
This solution not only maximizes the use of the available land but also reinforces CGA Reps’ commitment to sustainable practices.
“We are excited to embark on this project with CGA Reps,” said Jay Bailey, CEO of SCB Construction Group. “This partnership underscores our commitment to customer excellence in design and construction, and it is a testament to the trust our clients place in our ability to deliver projects that not only meet but exceed expectations.”
Delivering excellence through proven expertise
SCB Construction Group’s track record in 2024 has been nothing short of remarkable. Earlier in the year, the company completed a 72,500 square foot manufacturing center for Process Equipment & Controls, integrating office space within a dynamic production facility.
This project was celebrated for its innovative design that balanced operational efficiency with a modern aesthetic, utilizing IMP panels to mimic tilt-up concrete, setting new standards for manufacturing environments.
Similarly, the interior build-out for Courtesy Ford Conyers’ commercial service center demonstrated SCB Construction Group’s ability to transform conventional spaces into functional and attractive environments that cater to both customer and staff needs.
The company’s commitment to quality and precision was again evident in the successful Phase 1 completion for StoreEase Loganville. This project, which recently earned the distinction of a 2024 Smart Facility of the Year by Modern Storage Media, highlights SCB Construction Group’s forward-thinking approach to construction and design, incorporating smart technologies and design that enhance sustainability and operational efficiency.
A rebranding that reflects a vision for the future
In a move that signals its evolution and growth, SCB Construction Group has recently rebranded from its former identity, SteelCo Buildings, as it spins off its construction division. This strategic rebranding is not merely cosmetic — it represents a renewed commitment to capabilities, credibility and client-focused service.
The refreshed brand is anchored by a new tagline “Deep Expertise, High Expectations” and a clear brand promise that communicates the company’s mission: to craft exceptional construction experiences based on precision, innovation and trust.
“Our rebranding is about more than just a new name or logo; it’s a renewed promise to our clients and communities,” explained Robert Lee, marketing director at SCB Construction Group. “We believe that our updated brand identity, including our invigorated tagline and mission statement, encapsulates our dedication to pushing the boundaries of design and construction. It reflects our commitment to creating spaces that are as inspiring as they are functional.”
Transforming spaces to inspire and connect
The new headquarters for CGA Reps is expected to become a landmark facility in Peachtree Corners. Beyond its impressive architectural design and advanced construction techniques, the building is planned as a hub for innovation and collaboration.
The interior build-out will include dynamic client reception areas, interactive meeting rooms, and dedicated spaces designed to foster creativity and teamwork among employees. The layout is crafted to ensure that every area of the facility contributes to a productive and inspiring work environment.
“By investing in this state-of-the-art facility, CGA Reps is making a strong statement about the future of work,” said Bryan Young, VP of construction at SCB Construction Group. “Our team is dedicated to designing and building spaces that not only serve the immediate needs of our clients but also create environments that motivate and inspire. The new headquarters will be a testament to that vision.”
Looking ahead
The partnership between SCB Construction Group and CGA Reps marks a significant step forward for both companies. As SCB Construction Group continues to build on its legacy of excellence and innovation, this project is poised to set a new benchmark for modern office headquarters design in the region.
With a strategic focus on creating spaces that inspire, connect and drive success, the future looks promising for both SCB Construction Group and its esteemed partner, CGA Reps.
For more information on the new headquarters project or to learn more about SCB Construction Group’s portfolio, visit scbcg.com.
On Friday, May 10, 2024, the City of Peachtree Corners held a ribbon cutting and grand opening ceremony of its new space-themed Tot Lot Playground on Town Green.
Last November, the city began constructing a new tot lot playground for children under six years old that is themed around space exploration. This new play area includes a rocket ship, a moon rover, a crashed UFO and other fun designs. It was also created to be fully accessible, ensuring all children can enjoy it.
During the ribbon-cutting, children and their guardians enjoyed fun activities, including an ice cream truck, bubble lady, balloon animals, face painting and even a visit from Buzz Lightyear.
When Peachtree Corners City Councilman Alex Wright last had a dog, he was only a kid.
Young Alex was devastated when he died and did not want to get another dog because he did not want to endure that trauma again.
As a result, his family has never had a dog, and even though the two youngest of his four children badgered him and his wife endlessly, they always said no.
Then COVID-19 hit. The Wrights’ youngest son, Michael, was committed to convincing his parents to get a dog. He even did a PowerPoint presentation (with music) explaining why he absolutely needed a dog.
“I guess it was from being cooped up during Covid that my wife suggested maybe we should give in. Next thing I know we tell the kids we are going to get a dog,” Councilman Wright wrote in an email.
So, in June 2021, they got their first dog, Murphy, an Australian Labradoodle.
“All of a sudden, we discover this whole dog subculture that we had not really paid attention to before. All the things dogs liked to do, all the stuff you could buy them, all the people we met through walking the dog,” he explained.
In February, Wright and his wife were at Avalon returning a purchase when they came upon a modest-sized dog park. Wright’s wife suggested having something like that at Town Green would be great.
Dog Park Ribbon Cutting photos by George Hunter
“Later that day, I texted the City Manager [Brian Johnson] about the idea, and he really liked it. At the time, the playground (the one that opened in August 2022) was under construction, and we were already discussing other ideas to create activation at the Town Center, so this fit right into that plan,” said Wright.
The assistant City Manager, Seth Yurman, was tasked with the nuts and bolts and worked with a contractor on location and design.
“Can’t say enough about what a great job Seth did. We have definitely had some supply chain delays, which resulted in an opening maybe 9 to 12 months later than originally hoped for, but it is finally open,” he added.
Dog Park Ribbon Cutting photos by George Hunter
A couple more things are still left to do for the project, including installing a large sail cover over the stone entrance area. Construction of the Bone Bar is also on the agenda. This small bar will serve adult and non-adult beverages and likely…you guessed it? Treats for dogs.
The new dog park is situated behind the CineBistro building near the Town Green. The Peachtree Corners Off-Leash Dog Park is approximately 9,000 square feet and is divided into sections for smaller and larger dogs, with natural and artificial turf areas.
Dog Park Ribbon Cutting photos by George Hunter
PTC Dog Park Rules
- The dog park is open from 7 a.m. to 9 p.m.
- The dog park is CLOSED for maintenance every Wednesday from 7 a.m. to 10 a.m.
- Use of the dog park is at your own risk. You are responsible for your dog and any injuries or damage caused by your dog.
- All children under 18 must be accompanied by an adult.
- All dogs must wear a collar with a valid license and have current vaccinations required by law.
- Please call 911 for all emergencies.
- The small dog area is for dogs 30 pounds and under. Dogs over 30 pounds must use the large dog area.
- Dogs must stay on a leash until they are in the fenced-in areas of the dog park and must be off-leash while in the dog park.
- Professional dog trainers may not use the dog park to conduct business.
- No person shall bring more than three dogs at one time.
- Please dispose of your dog’s waste in the receptacles provided. Remind others to do the same.
- Dogs must always be under the control and supervision of their handler.
- If your dog becomes aggressive, please leash the dog and exit the park immediately.
- Gates must be closed after entrance and exit.
- Dogs under six months old and female dogs in heat are not permitted.
- Food (human and dog) and glass containers are not permitted, as are smoking, vaping and drug use.
- Cats and other animals are not permitted.
- Bikes, scooters, skateboards and motorized equipment are not permitted.
- Violation of these rules may result in a ban from the dog park.
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