CP Group spends big on former AT&T campus to compete with new Midtown offices
One of the largest owners of office space in Atlanta is spending $20 million — its costliest local renovation project yet — to turn a former AT&T campus into what it considers a shiny, affordable alternative to new buildings in Midtown.
The campus was built in 1983 and used to house offices for AT&T Inc.'s various iterations: AT&T Inc., BellSouth Mobility, Cingular Wireless, and AT&T. The 280,000-square foot building is now available for lease. According to CP Group, a 3,000-square foot undisclosed company has already landed there. Nearly everything is brand new. The facade was removed and replaced by glass. The floors have been demolished. In the last two years, real estate priorities have changed for companies. A company's office is more than just a place for employees. It can also be used as a recruiting tool. This trend is evident in data on leasing: office buildings built after 2015 have shown positive net absorption over the past eight quarters. According to Jones Lang LaSalle data, this is the only type of office building that has seen positive net absorption. The advantage of 5600 Glenridge is its price point. This is only a fraction the new space available in Midtown, Atlanta's most active market for leasing. The second-largest Atlanta office space owner by square footage is CP Group. CP Group purchased the building directly from AT&T in 2019. They saw an opportunity to take a building that was previously held by a corporate tenant and bring it back on the market. However, almost everything needed to be updated, including the command center with drywall above the windows. AT&T leased it back from CP Group after they bought it for $17million. The building was only half-capacity at that time. When the pandemic caused companies to switch to remote work models, less than 20 people were present at the office building in 2020. As part of a wider strategy to reduce real estate, the company moved out.