T-Mobile Doubles Down on 100 KSF Atlanta Lease
T-Mobile has renewed its commitment to roughly 100,000 square feet of office space at CP Group and Farallon Capital Management’s One Ravinia, a 386,603-square-foot property part of a larger, two-building, 800,000-square-foot office campus in Atlanta.
CBRE and Cushman & Wakefield represented the landlord and tenant, respectively. The mobile telecommunication company has been a tenant at One Ravinia since 2007, anchoring the 17-story office tower.
In 2021, a joint venture between CP Group and Farallon paid $219.5 million for a portfolio that included One and Two Ravinia, as well as One Overton Park, a 387,267-square-foot office asset in Atlanta, CommercialEdge data shows. Franklin Street Properties was the seller, while Blackstone Group funded the acquisition with a $205.4 million note set to mature in 2026.
Forging prime office space
Following the acquisition, the new ownership began upgrading Ravinia. Capital improvements were implemented to the lobbies, cafe and conference center. The landlords also added a new tenant lounge and 85,000 square feet of built-to-suit space. Work for the latter is ongoing and completion is expected in October.
READ ALSO: Atlanta’s Office Market Sees Improvement
Against the backdrop of the refurbishments, the towering duo achieved WELL Health-Safety Rating in 2023. Additionally, Two Ravinia got LEED Gold certified the same year, while One Ravinia is currently pursuing LEED certification.
Floorplates range between 13,000 and 24,285 square feet at Ravinia One. The 42-acre campus comprises a 500-key hotel and amenities such as a gym, EV charging stations, a cafe, outdoor workspaces, as well as shuttle services to a nearby shopping center and train station, among others.
Located at 1 Ravinia Drive, the tower rose in suburban Atlanta, in DeKalb County. Downtown Atlanta is roughly 15 miles southwest while Interstate 285 is less than 1 mile away. Multiple parks and quick-service restaurants can be found within walking distance.
CBRE Executive Vice President Eric Ross led the negotiations on behalf of CP Group. Cushman & Wakefield Executive Managing Director Kirk Diamond, together with Executive Director April Parrish and Managing Director Erin Smith, as well as Senior Transaction Manager Steven Taylor, represented T-Mobile.
Atlanta’s office market is healing
Greater Atlanta’s office market appears to be on the mend. The City in a Forest recorded 5.4 million square feet of office space leased during the first six months of the year, according to a report by Avison Young. The number of closed deals increased by 1.7 percent year-over-year.
Although office vacancy clocked in at 32 percent in June, metro Atlanta’s availability dropped by 0.6 percent quarter-over-quarter, the report goes on to show. This tightening in vacancy marked the first decrease since early 2021.
What’s more, the average lease-up time for office listings in the metro shrunk to 21.2 months in June—a 7 percent decrease year-over-year in the time spent on the market—with spec suites leasing 9 percent faster quarter-over-quarter, the report reveals. Avison Young estimates the desirability of build-to-suit space to arrive from move-in readiness during a period characterized by rising construction costs affecting buildout.
Other notable Atlanta office leases to close recently include Piedmont Healthcare Inc.’s commitment to 164,221 square feet at Lionstone Investments’ 540,000-square-foot property. Additionally, Newall Brands Inc. committed to 180,000 square feet at Concourse Office Park, a 697,400-square-foot office tower in Sandy Springs, Ga., owned by Building and Land Technology.
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