In what would be one of the largest transformations of a trophy office tower in the U.S., paper and consumer products giant Georgia-Pacific wants to transform its 51-story downtown Atlanta headquarters to include some of the highest apartments in the Southeast.
Plans call for more than 400 rental units on the upper floors of Georgia-Pacific Center at 133 Peachtree St., according to the company. It also would include about 125,000 square feet of retail, restaurant and entertainment space; 600,000 square feet of Class A offices; and a 35,000-square-foot central plaza.
Future development at the site could include a hotel and additional shops, restaurants and residences, according to Georgia-Pacific.
The proposed project, expected to be complete in fall 2027, is another sign of landlords around the United States exploring creative uses for outdated or excess office space after the pandemic led to more remote work and corporate cost-cutting.
"The office landscape has changed, and we recognize that the adaptive reuse of our site and office tower can create greater long-term value," Christian Fischer, president and CEO of Georgia-Pacific, said in a company statement. "We are also acutely aware of the need for more residential, shopping, dining and entertainment options in our downtown neighborhood."
Cities around the country considering office-to-residential conversions include Washington, D.C., New York and Chicago.
The efforts have become more urgent in recent years as officials grapple with low office attendance rates as well as a nationwide housing shortage that has driven up apartment rents.
Downtown market struggles
These projects can face fundamental challenges. Industry professionals have said office-to-residential conversions can be costly because of such factors as building layout, kitchen gas hookups and other features that may be required of a residential unit.
Even so, a successful transformation would allow residential tenants in a landmark building. The 1.1 million-square-foot Georgia-Pacific Center opened in 1982 and is known for its stair-like, pink granite design. It's on the site of Loew's Grand Theatre, where "Gone with the Wind" premiered in 1939.
Georgia-Pacific is part of Koch, the building's owner. Georgia-Pacific is the largest office tenant in the tower, occupying about 357,000 square feet, according to CoStar data. The building, with other tenants including Invest Atlanta, Kumho Tire and corporate real estate executive association CoreNet Global, has 264,594 square feet of office space available, CoStar data shows.
In downtown Atlanta, office vacancies have increased from about 10% in 2019 to 17.5%, according to the latest report from CoStar Market Analytics. No recent downtown groundbreakings have occurred, and major tenants such as Truist, CNN and Deloitte have left older buildings for newer areas, the report stated.
"The areas just outside of downtown's core have the brightest near-term prospects," CoStar market analyst Madelyn Bearn wrote in the report. "A handful of creative office buildings have sprung up in neighborhoods along the Eastside BeltLine, and the area is becoming an office cluster in its own right, boasting a collection of small to midsized technology companies."
Still, Bearn noted that downtown Atlanta has "positive demand drivers," including transit amenities, discounted office rents and its proximity to Hartsfield-Jackson Atlanta International Airport.
Georgia-Pacific said it has an in-house development team working on the conversion. It would benefit surrounding businesses by creating a vibrant neighborhood for their employees, the company said.
"This transformative redevelopment is a significant step in moving Atlanta forward, turning an important block in the heart of the city into a vibrant and welcoming destination that breathes new life into downtown," Atlanta Mayor Andre Dickens said in a statement.
For the record
The Georgia-Pacific project team includes Rule Joy Trammell + Rubio; architect of record; Healy Weatherholtz, retail broker; Kimley-Horn, civil engineer; Studio Saint, interior designer; Brasfield & Gorrie, preconstruction; and Transwestern, consulting and property management.