Atlanta Co-Working Boom Puts Pressure On Traditional Office Leases
Atlanta has become one of the top five markets in the U.S. for co-working. As the number of tech companies and startups in the city grows, co-working companies have acquired properties in Atlanta’s urban core and surrounding suburbs.
The increasing availability of co-working spaces has strained the traditional office market. The proportion of U.S. co-working members who have moved from traditional offices to co-working rose from 23% in 2014 to 37% in 2016. While Atlanta office net absorption was positive, rising from 345K SF in Q3 to 906K SF in Q4, according to Colliers, the data does not account for the percentage of office leases made by co-working companies. Beyond the numbers, Atlanta owners have to compete with highly amenitized, modern workspaces that offer the flexibility that young, high-growth businesses demand.
Several national co-working providers have grown exponentially in Atlanta. Earlier this month, New York-based Serendipity Labs signed a franchise agreement to launch 17 co-working locations in Atlanta, Charleston and Greenville. Serendipity Labs secured its first Atlanta location at Three Alliance Center in late 2017.
Source, Travis Gonzalez, Atlanta Co-Working Boom Puts Pressure On Traditional Office Leases, Bisnow.