WeWork Signs for First Ground-Up Site in Atlanta
Co-working Giant to Occupy Two Floors at Coda in Midtown
WeWork today confirmed what real estate watchers knew weeks ago - the co-working goliath will establish its first new-build spot in Atlanta at Coda in Midtown.
The company said Thursday it signed a lease at the Portman Holdings development under way at West Peachtree and 4th streets at Georgia Tech's Technology Square development. WeWork will set up spaces for nearly 900 co-working people at what it's calling WeWork 756 W Peachtree. It leased the third and fourth floors for a total of 50,000 square feet.
WeWork is expected to open 756 W Peachtree - its third location in Midtown - in spring 2019. WeWork's other two Atlanta offices are at Tower Place and Terminus, both in the heart of Buckhead.
WeWork chose Coda because of its location in the Tech Square ecosystem and the ability to work with Portman Holdings to create the precise space it needs in the building.
"The Coda development is undoubtedly a collaborative core and pinnacle in Midtown, and it is only fitting that we chose this space for our fifth and newest WeWork community in Atlanta," WeWork Southeast General Manager Bobby Condon said. "Coda will serve as a catalyst for tech breakthroughs throughout the region, and WeWork 756 W Peachtree will offer Atlanta's top creators access to yet another innovative and vibrant ecosystem where they can seamlessly work to make a life, not just a living."
With WeWork expanding in Midtown after starting in Buckhead, Downtown is the next logical submarket for the co-working company, said Ben Braley, senior market analyst in CoStar's Atlanta office. "Buckhead's humming. Midtown's humming, and now companies are starting to look more at Downtown," he said.
Downtown offers excellent access via several MARTA stations and office space at lower rents, Braley said. Therefore, Downtown - long ago the heart of Atlanta business - should be attractive to companies looking to be ahead of the curve on location as the area rebounds, Braley added.
As WeWork continues to gobble up large chunks of space, owners and brokers are closely monitoring its success. Chris White, vice chairman and Atlanta Market Leader at Savills Studley, said, "The verdict's still out a little bit" on co-working operations in general, especially among larger corporate clients.
"It definitely serves a purpose, such as for a new sales office, and is a good way to get started," White told CoStar News last month. "It's just not right for all requirements."
That could change as other co-working companies such as Serendipity Labs expand in metro Atlanta. Serendipity is more of "grown-up" co-working space, the company said. And a co-working company that caters to legal firms is considering a spot in Campanile at 14th and Peachtree.