Downtown Atlanta boosters have long complained about office buildings turned into virtual no-man's lands filled with computer servers but few people.
Now, one of those buildings is moving in the other direction: 55 Marietta, a 20-story downtown building that houses data center facilities, is wrapping up a $5 million renovation that will include traditional office space and ground-level retail.
The plan by building owner Westplan Investors, part of a Netherlands-based company, is a bit unusual because most carrier hotels are 100 percent data buildings. But in the past year the company has expanded transformer and generator capacity, renovated lobby and office space, and created ground level retail space, said Ewoud Swaak, president of U.S. operations.
“Not a lot of people were noticing the building, so we're adding ground level retail to connect the building with the street again. There’s a lot of foot traffic downtown,” Swaak said.
Many building owners are struggling financially, he said, and can’t afford to renovate.
“They’re stretched too thin,” Swaak said. “We’re debt-free.”
The technology real estate sector is not experiencing the same recession that other commercial real estate is going through, said Pete Marin, president of T5 Partners, an Atlanta-based data center developer.
“Society as a whole is transforming from print to digital. Bandwidth is not going down, it’s going up,” he said, explaining the success of data center facilities.
Kristie Abney, senior vice president of agency leasing for Transwestern Atlanta, the new leasing agent for 55 Marietta, said the 440,000-square-foot building is about 60 percent occupied. She said traditional office space in the building will lease for $14 to $16 per square foot, compared with downtown’s average asking rent of about $19.
“We’re trying to stay competitive,” she said, “by keeping a few dollars below other players.”
A birthday bash will be held on May 13 to celebrate the 55th anniversary of the building and show off its new look.
Central Atlanta Progress sees the renovation as a plus.
“We think the changes they have proposed are all very positive,” said Ellen Mendelsohn, vice president of economic development for CAP. "For the vibrancy of downtown, it’s better to have people.”
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