Wooten: We are seeing all sorts of tenants from banking and financial services, to healthcare to media and marketing groups choose to relocate to class B properties because of costs. A current trend we are seeing is landlords are renovating older class B properties into creative, adaptive reuse buildings making them more attractive to young, Millennial-driven businesses that want exposed ceilings, open floor plans, activated lobbies and cutting-edge amenities. Atlanta Tech Village and impending transformation at Colony Square are two of many examples where landlords have taken older, less desirable office buildings and are transforming them into projects that offer a true experience and that meet the needs for a growing number of today's tenants.

GlobeSt.com: What can or will landlords of class A properties do to keep tenants from going to class B properties?

Wooten: While we are seeing a growing number of tenants relocate from class A properties to class B properties for costs reasons, many want to remain in trophy class A buildings because they want the image and amenities that class A buildings provide. With class A occupancies across the city hovering around 90%, there is obviously not a problem with landlords losing tenants to class B properties. Some tenants in class A buildings are getting more efficient with their space use in order to cut costs. We continue to see more and more of these tenants pushing closer to the 150 per square foot per employee mark, and in some cases lower, where traditionally we would see 200 per square feet and above.

ATLANTA—Future absorption levels of class B office space are expected to ramp up as construction projects are completed and leases commence for several large tenants. That's according to PMRG Atlanta.

The firm's latest study predict landlords will maintain the upper hand in lease negotiations for quality space in the most desirable submarkets with fewer concessions being offered and rental rates trending upwards. Corporate users seeking large space options in highly desired areas will either have to wait on new speculative construction or consider class B space options to satisfy their requirements.

GlobeSt.com turned to Zach Wooten, vice president of leasing for PMRG Atlanta, to get his thoughts on class B dynamics in part two of this exclusive interview. You can still read part one: Is Class A Sticker Shock Driving Exodus To Class B Office Space?

GlobeSt.com: What types of tenants are most willing to lease Class B properties?

Wooten: We are seeing all sorts of tenants from banking and financial services, to healthcare to media and marketing groups choose to relocate to class B properties because of costs. A current trend we are seeing is landlords are renovating older class B properties into creative, adaptive reuse buildings making them more attractive to young, Millennial-driven businesses that want exposed ceilings, open floor plans, activated lobbies and cutting-edge amenities. Atlanta Tech Village and impending transformation at Colony Square are two of many examples where landlords have taken older, less desirable office buildings and are transforming them into projects that offer a true experience and that meet the needs for a growing number of today's tenants.

GlobeSt.com: What can or will landlords of class A properties do to keep tenants from going to class B properties?

Wooten: While we are seeing a growing number of tenants relocate from class A properties to class B properties for costs reasons, many want to remain in trophy class A buildings because they want the image and amenities that class A buildings provide. With class A occupancies across the city hovering around 90%, there is obviously not a problem with landlords losing tenants to class B properties. Some tenants in class A buildings are getting more efficient with their space use in order to cut costs. We continue to see more and more of these tenants pushing closer to the 150 per square foot per employee mark, and in some cases lower, where traditionally we would see 200 per square feet and above.