“There’s just not a lot of big blocks of space out there,” said Steve Baile, chief operating officer of Selig Development. “We’ve not had a new big building delivered (in Midtown) since 2010. That’s not like Atlanta from past cycles.”
Midtown office vacancy stood at about 10.6 percent in third quarter, according to real estate firm Savills Studley.
Atlanta-based Portman is set to break ground Tuesday on Coda, the second phase of Technology Square, which will be anchored by Georgia Tech and include space for the private sector. Houston-based real estate services firm Hines, meanwhile, has pitched mid-rise offices at Atlantic Station.
But office construction in the Atlanta region has been disciplined compared to the boom when several new towers opened largely empty following the economic collapse.
Baile said the group is in discussions with potential office tenants and plans to launch when the building is about half-leased. Office leasing activity will drive the start of construction the complex, Baile said.
The project will launch a new development division within Selig, best known as a real estate investor and landlord, and a force behind the mixed-use 12th & Midtown development.
Selig said the project at 1105 West Peachtree Street and 12th Street will be the first of numerous developments on land Selig Enterprises has acquired in Midtown and throughout the Southeast.