A fantasy sports company is expanding its Atlanta footprint by about 46 percent, marking a much-needed victory for a submarket grappling with record-high office vacancies.
PrizePicks has leased 33,000 square feet at the 15-story Star Metals Offices, at 1055 Howell Mill Road in West Midtown, with plans to relocate at the end of the year from its 22,500-square-foot space in Midtown’s Promenade Tower, the Atlanta Business Chronicle reported.
Star Metals Offices, spanning over 300,000 square feet, was developed by Allen Morris Company and completed in 2021. It features 40,000 square feet of retail space, as well as an amenity deck with a coffee shop, outdoor lounge and a 30-person conference center.
PrizePicks’ office expansion bucks the trend of companies slashing their leases in light of the remote-work movement. Such reductions contributed to a vacancy rate of 20.8 percent in the Midtown area last quarter, according to Colliers. The submarket also experienced a 40 percent decline in leasing activity year-over-year in the fourth quarter, with a negative net absorption of 337,000 square feet.
The lease follows three years of exponential growth for PrizePicks, reflecting the increasing popularity of fantasy sports. Over the past decade, the industry has evolved into a multibillion-dollar powerhouse, buoyed by substantial investments and partnerships with major professional sports leagues.
Founded in 2017 by CEO Adam Wexler, PrizePicks’ revenue has skyrocketed by 3,712 percent over the past three years, raking in $2.24 billion in 2022 alone, making it one of Atlanta’s fastest-growing private companies. Wexler’s vision for a more accessible and engaging fantasy sports experience has propelled PrizePicks to the forefront of the industry.
“The concept of daily fantasy sports was a great one, but the execution was not very favorable to the casual sports fans,” Wexler previously told the outlet. “So we wanted to make a daily fantasy sports product that was fun, easy and exciting.”
—Quinn Donoghue
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