Colliers Atlanta Executives See Millennials Driving Atlanta’s Office Resurgence

ATLANTA, GA—Millennial preferences for “live-work-play” environments and amenity-rich offices are driving much of the resurgence in office development around the Atlanta area, according to Deming Fish, senior vice president and head of the Landlord Services Group and his colleague in the group, senior vice president Scott DeMyer.

Fish spent 19 years on the development side of the business providing lead tenant leases for new office development in Atlanta, Birmingham, Nashville, and Charlotte. He has led Colliers Landlord Services team since 2011, growing the portfolio to more than 8.5 million square feet of class A and B office properties. DeMyer has 20 years of landlord experience with both institutional and privately owned real estate holdings crossing multiple property types; office, mixed-use, historic loft, industrial and retail.

Fish and DeMyer discussed development trends in the market in an exclusive interview with GlobeSt.com.

Q: According to your data, Downtown Atlanta has emerged as the top office submarket in the city. Why are companies flocking to the city’s core?

Deming: We have seen a significant resurgence in the residential base near Downtown Atlanta, especially to the East. This growth combined with the area’s accessibility via major interstates, MARTA and the world’s busiest airport has sounded a beacon for companies looking to recruit a younger employee base. Downtown is in the perfect position for sought-after millennial talent; it has the amenities, it has the entertainment and it has the connectivity to the residential base allowing for short commutes. The area is less than five minutes from uber-popular Krog Street Market and less than 10 minutes from Inman Park and Old Fourth Ward, two of the city’s hottest neighborhoods.

Scott: The first thing I think about is the talent. Georgia State University and Georgia Tech are both close to downtown. This is where the students are and it’s where they’re living after they graduate. Downtown Atlanta is appealing to them because of everything you can do there and in surrounding neighborhoods from an entertainment and lifestyle point of view and its walkability and commute options.

Q: What amenities are these companies looking for? How do you differentiate yourself as an office complex or building to stand out?

Scott: Employers want to create a vibrant, immersive environment for their employees, and prospective employees are looking for places with an abundance of amenities. If they’re going to spend at least eight hours a day somewhere, they want it to be stimulating. Companies are flocking to places that are saturated with restaurant and entertainment options that their current and future employees can enjoy before, during and after work. Today’s employees don’t want to get in their car when they get one hour for lunch. It’s all about convenience.   The Hub at Peachtree Center is alive because it’s easy for our office workers to go downstairs and enjoy a nice meal outside of the office. They’re an elevator ride away from dozens of restaurant options; you don’t get that elsewhere in Atlanta. Plus, we offer a program called Peachtree Plated that offers free delivery from these restaurants to our tenants. It’s the details and conveniences that matter.

Deming: Employers are looking to plant their offices in a location that functions like a community. They are looking at places where their employees have more options outside of work – whether its shopping, eating, catching a game or movie or strolling through a park or city streets. Placemaking is more than a trend; it’s a must-have for exciting office space today. An example of this is Peachtree Center’s Green Market, which occurs on Thursdays throughout the spring and summer months. The Green Market is an urban street market that is held in Peachtree Center’s courtyard and allows anyone in Downtown Atlanta to walk in from the street and purchase organic vegetables to handcrafted goods from a variety of local vendors. Companies value places that have local flavor and energy, and you don’t see that everywhere.

Q: What role do millennials play in the world of office leasing? Is it just a buzzword or are companies really choosing office space based on the desires of young talent?

Scott: It’s not just a buzzword, it is true. Millennials make up an increasing percentage of today’s workforce, and Gen Z is on their way. Companies are going out of their way to seek office locations that will appeal to under-35 workers. This means places that are amenity rich, walkable and energized.

Deming: Millennials will forgo a job based on where they want to live and the type of lifestyle they want to lead. That is why it is so important for these companies to choose an area within close proximity to where these folks live. In Atlanta, younger workers are settling around Downtown in the Old Fourth Ward, Inman Park, Poncey Highlands and Westside neighborhoods because those areas offer vibrant cultural scenes and they are walkable. A much younger, hipper and educated workforce currently resides around Downtown, and companies are moving here because the talent pool is better and it provides an advantage in recruiting the talent they need.

Q: Peachtree Center is currently undergoing a massive renovation. How does this effect the office towers? How will it enrich day-to-day life for tenants?

Scott: At Peachtree Center, there is an extraordinary amenity base that is going to get even better. Our amenity base is located at the foot of the building and is the largest concentration of amenities in the city. Peachtree Center is also completely walkable. Employees can get anywhere they need to be Downtown by foot, from the post office to an Atlanta Hawks game. Additionally, Peachtree Center is entirely accessible. It has its own MARTA station below The Hub so employees can get to the office from the train seamlessly. Peachtree Center functions as a community; it brings people together through connected gathering spaces and thoughtful programming. The renovation will enhance all of these qualities by adding fresh and modernized public spaces and creating more opportunities for people to connect through placemaking and retail and restaurant tenants that are better suited for the future of the workplace.

Deming:  Yes, we are very excited to bring a refreshed retail tenant mix to the property to better cater to our office tenants. As far as restaurants go, The Hub is combining Atlanta favorites like Aviva, Gus’s World Famous Fried Chicken and Panbury’s with some new tenant options like Salata, BEP! Eatery and Beni’s Cubano.

Q: Atlanta has made great strides recently and is coming into its own as a global hub of business and culture. What would you like to see happen in Atlanta in the next 10 years? How would you like to see it grow?

Deming: I’d like to see the continued growth of the intown residential base and corporate technology user that has moved back into the urban core. Downtown Atlanta will continue to expand its entertainment, shopping and dining options, and I’d like to see that trend continue to grow from an office standpoint to an overall living standpoint. The historic central business district of Atlanta has evolved to include not only the central aspect of business but a fully mixed-use environment. I believe Downtown Atlanta will continue to increase in the amount of residential assets and bring in more people to activate the submarket 24/7. It’s not about diminishing the amount of office use in the area, it’s about increasing the amount of shopping, dining and other options that benefit the office component in Downtown Atlanta.

Scott: Downtown Atlanta is increasingly becoming a place where people are living, working and playing every day, which further enhances the office experience and office world. It’s currently a destination, but I believe it will become a true neighborhood because it’s within close proximity to what people are doing every day. Because of smart placemaking, Downtown Atlanta will become a community that inhabits the space well beyond normal business hours. We draw inspiration from this placemaking and community building in our work in the office environment as well. For example, our Marquis Towers at Peachtree Center are currently making great strides to reach our goals in creating community spaces that invite people in rather than encouraging separation. We are truly investing in Downtown, both with our dollars and our actions.