By Clinton McKellar, Director, Office Tenant Representation
For tenants, the demand for loft office in the Atlanta market hasn’t missed a beat in spite of three straight years of double digit rent growth. As many of these loft redevelopment projects are filling up, a dynamic that is new to Atlanta’s loft office boom is starting to impact tenants.
Loft office projects are typically rehabilitation efforts on older warehouse buildings where the highest and best use has been missing for years. Developers are buying these buildings at a relatively low price (under $100 per square foot) and investing another $100 per square foot to create unique but functional loft office space. The investment in these redevelopments increases the tax basis and when the finished product is reassessed, the increased tax burden is passed through from the landlord to the tenants.
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