An insurance giant is relocating its headquarters and nearly doubling its Atlanta footprint, tallying wins for both the city’s office market and Piedmont Office Realty Trust.
OneDigital has signed a 13-year lease for 70,400 square feet across three floors in 300 Galleria Parkway, a 20-story tower within the Galleria mixed-use development, northwest of downtown, the Atlanta Business Chronicle reported.
JLL brokers Gannon Shepherd, Ryanne Pennington and Tim McCarthy represented OneDigital, while JLL’s Jeff Bellamy, Adam Viente and Claire Ross represented Piedmont, which acquired the 432,000-square-foot building in 2015. Piedmont has owned all five office towers in the Galleria since 2019.
OneDigital, which employs about 400 people in the Atlanta area, will relocate from its nearby home at 200 Galleria, where it leases around 40,000 square feet. The company will start filling out one floor of the building in June, with plans to fully occupy its new space by late 2025.
The new headquarters is expected to serve as a hub for collaboration and innovation, OneDigital CEO Adam Bruckman told the outlet.
Akin to most major metros, Atlanta’s office sector has been reeling ever since the pandemic ignited the remote-work movement. With the inclusion of sublease space, the city’s office vacancy rate rose to a record high of 29.6 percent in the first quarter, according to Savills. Excluding subleases, vacancies stand at nearly 25 percent, according to Cushman & Wakefield.
However, the Cumberland-Galleria area has emerged as a bright spot. The submarket was one of the city’s top performers last year, with 109,000 square feet of positive net absorption in the fourth quarter, according to Colliers. That trend is expected to continue this year.
Meanwhile, OneDigital, founded in 2000, has grown into one of the nation’s largest insurance brokerages and HR consulting firms through various acquisitions. The company reported revenue of $907 million in 2022, up from $692 million in 2021.
—Quinn Donoghue
Read more
Commercial
Atlanta
PrizePicks expands Atlanta footprint by 46% in Midtown move
Commercial
Texas
Woodside makes $14M office play in Atlanta
Commercial
Atlanta
Partners Real Estate taps John O’Neil to lead Southeast expansion