Just like a new car depreciates in value as soon as it’s driven off the lot, some things are expected to get cheaper with time.
Real estate is generally an exception to that rule. But mounting struggles in Atlanta’s suburban office market are resetting some of those expectations.
A three-building office complex called Georgia 400 Center in Alpharetta recently sold for $39.1 million, about 57% less than it last did in 2019.
Atlanta-based developer Third & Urban plans to renovate and lease up the 24-acre campus off Ga. 400 and Haynes Bridge Road.
The trio of mid-rise buildings is the latest example of office properties seeing their values reset amid widespread distress prompted by the COVID-19 pandemic.
The rise of hybrid work schedules, record-high vacancy rates and rapid change in interest rates have pushed many office buildings to the brink of foreclosure. The pressure has led some owners to off-load buildings at significant discounts to new ownership groups seeking bargains and properties primed for a refresh.
Just like a new car depreciates in value as soon as it’s driven off the lot, some things are expected to get cheaper with time.
Real estate is generally an exception to that rule. But mounting struggles in Atlanta’s suburban office market are resetting some of those expectations.
A three-building office complex called Georgia 400 Center in Alpharetta recently sold for $39.1 million, about 57% less than it last did in 2019.
Atlanta-based developer Third & Urban plans to renovate and lease up the 24-acre campus off Ga. 400 and Haynes Bridge Road.
The trio of mid-rise buildings is the latest example of office properties seeing their values reset amid widespread distress prompted by the COVID-19 pandemic.
The rise of hybrid work schedules, record-high vacancy rates and rapid change in interest rates have pushed many office buildings to the brink of foreclosure. The pressure has led some owners to off-load buildings at significant discounts to new ownership groups seeking bargains and properties primed for a refresh.
This is a photo of the Georgia 400 Center office park in Alpharetta. (Courtesy of Third & Urban)
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This is an aerial photo of the three-building Georgia 400 Center office park in Alpharetta. (Courtesy of Third & Urban)
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