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NY Insurer Makes Bet on Downtown Atlanta

ATLANTA—Lincoln Property Company calls it one of Atlanta's best class A office buildings.

By Jennifer LeClaire | jenniferleclaire | | Updated on May 10, 2016
The LEED Gold-certified, 348,658-square-foot class-A office building is part of the Allen Plaza mixed-used development. The LEED Gold-certified, 348,658-square-foot class-A office building is part of the Allen Plaza mixed-used development.
ATLANTA— New York Life is betting on Downtown Atlanta . The insurance company just signed a new 3,923-square-foot lease at 55 Allen Plaza. Hunter Henritze and Michael Howell of Lincoln Property Company Southeast , along with Porter Henritze of Cushman & Wakefield , represented the landlord in the transaction. William Probst of JLL represented the tenant. “The appetite for space in class A office buildings in Atlanta is robust, with vacancy declining from 14.3% in the fourth quarter of 2015 to 14.1% in the first quarter of 2016, according to CoStar ,” Henritze tells GlobeSt.com. ”Additionally, net absorption for the first quarter was positive 234,535 square feet and rental rates averaged $25.75, up from $25.18 in the fourth quarter of 2015, so all market indicators are pointing to a positive second half of the year.” Henritze calls 55 Allen Plaza one of Atlanta’s best class A office buildings. He points to the property’s prime location and amenities and its recent Outstanding Building of The Year Award from The Building Owners and Managers Association of Georgia in 2013. The LEED Gold-certified, 348,658-square-foot class-A office building is part of the Allen Plaza mixed-used development. 55 Allen Plaza is located within walking distance of restaurants, the W-Atlanta Downtown Hotel & Residences, retail , and Centennial Olympic Park. “The unknown is how the 2.78 million square feet of class A space under construction will impact the market upon delivery,” Henritz says. “However, since it represents only about 1% of the existing office stock, even if none of the space was pre-leased the market won’t be severely impacted, said Howell. Additionally, this new stock will be at rental rates ranging from $35 to 45, which will only serve to stretch the market upward. We are optimistic that with major companies relocating and expanding in the city that there’s demand to fill it.”

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