The lobby and other areas of Atlanta's high-profile 191 Peachtree office tower are in line for an upgrade in an indication that the downtown office market may be rebounding.
Banyan Street Capital and Oaktree Capital Management hired local architecture firm Cooper Carry to redesign the seven-story main atrium and lobby at the 50-story tower, as well as improve the integration of the space and its restaurants with the connected Ritz-Carlton hotel, according to a statement from Banyan Street. The landlords also plan to add about 24,000 square feet of speculative office suites on the 22nd floor and sell signage rights for the top of the building's iconic double crown for the first time in history.
The downtown Atlanta office market has struggled for decades, and the weakness has persisted this year, including the owner of 55 Allen Plaza returning the property to its lender. However, there are signs of a potential comeback downtown, with apartments under construction at the $5 billion Centennial Yards project and the renovation of the former CNN Center office building. Atlanta is one of the host cities for the 2026 FIFA World Cup soccer tournament and will host matches downtown.
"While it's no secret that downtown Atlanta has faced some recent challenges, we believe the pendulum is swinging back and we want to ensure this incredible asset remains the most accessible luxury office experience in Atlanta," Zac Gruber, president of the office division at Banyan Street, said in the statement.
"The data shows positive tailwinds in the leasing market," Gruber said. "Tours are up, proposal activity is picking up and there is renewed interest in downtown from tenants."
The postmodern-style 191 Peachtree tower, designed by architects Philip Johnson and John Burgee, opened in 1990 and is the city's fourth-tallest building at 771 feet.
"You can't replicate [the building's] renowned architecture," Anita Summers, principal at Cooper Carry's Johnson Studio, said in the statement. "Our design plan enhances the space to serve more tenants and guests, while preserving the features that make 191 Peachtree such a distinctive and inspiring place to work."
Cooper Carry is a tenant at 191 Peachtree, occupying 50,208 square feet. Construction on the renovation is scheduled to begin later this summer and be completed by spring 2026.
The 191 Peachtree tower is 64% leased, according to CoStar data. Its largest tenant is Hall Booth Smith, a law firm that occupies 77,362 square feet. Other tenants include Osmose Utilities Services, the Metro Atlanta Chamber of Commerce, law firm Morgan & Morgan and accounting firm Forvis Mazars.
However, 191 Peachtree has lost or is expected to lose high-profile tenants in recent years, including consulting firm Deloitte, architecture and construction firm HNTB and law firm Ogletree Deakins.
Mexican restaurant Alma Cocina, located at the building's street level, will receive a facelift as part of the renovation, including a new millwork bar. Meanwhile, coffee shop Land of a Thousand Hills will receive a new bronze and glass overhang, new tiling and stone countertops, according to the release.
The entrances to Alma Cocina and the Ritz-Carlton are also set to receive new facades, integrated seating and new lighting.
Centennial Yards, a mixed-use project developed by CIM Group and an affiliate of Tony Ressler, principal owner of the Atlanta Hawks, was slated to include office buildings during its early phases. But developers postponed the office portion and have instead focused on multifamily properties and creating an entertainment district. CIM Group announced an agreement with Live Nation to manage a music venue there and a deal with Cosm to develop a virtual reality-based entertainment experience.
CP Group acquired the former CNN Center for $145 million in 2021 and is repositioning the 1.2 million-square-foot property as a primarily retail destination. Now called The Center, the property benefits from its proximity to Mercedes-Benz Stadium, State Farm Arena and the Georgia World Congress Center. CNN no longer occupies space in the property.
For the record
Chris Port, Kyle Kenyon and Maddy Nagley at CBRE represent Banyan Street and Oaktree on leasing at 191 Peachtree.