Development Year in Review: Six New Projects Delivered in '24
12/05/2024
Midtown momentum has continued at a torrid pace in 2024, with six major development projects opening their doors, creating new spaces for people to live and work. In all, nearly 2,200 new apartment units were introduced into the market, as Midtown's profile as a residential neighborhood continues to take shape. The developments added a combined 65K SF of retail space to Midtown. And what could be metro Atlanta's last spec office for the foreseeable future has come online with 530K SF of space at the edge of the district.
So, what does it all mean for the district as 2025 approaches?
Residential growth continues to enhance Midtown's vitality as a mixed-use activity center.
More new residential units have landed in Midtown in the past 12 months than during all but one other 12-month period in the district's history. The amenity-rich environment and walkable neighborhood attributes continue to attract residents, who now have even more places to stay.
Of note: all of the nearly 2,200 residential units introduced this year are apartments, continuing a recent trend that has emphasized multifamily apartment growth. The last condo project with an opportunity to own a residence that came online was the 40 West 12th Condominiums in 2021. Average monthly non-student apartment rents in Midtown are $2,460 according to data from CoStar.
The student housing market continues to roar in Midtown.
The category didn't really exist in the district ten years ago. But today, vertical neighborhoods built for students attending Georgia Tech, SCAD Atlanta, Emory University, Georgia State and other area schools have risen all over Midtown, with more on the way. Of the six residential projects that opened this year, 600 beds are dedicated to serving college students, and another 800 beds will be available next year.
The presence of college students in Midtown has steadily grown with expansion - both in terms of academic programs and residential options - happening within and near the major intown schools. Today, college students account for roughly 8,500 of the total 28,000 residents in the district. It's a solid business case for companies looking to attract young talent to set up shop in Midtown and increase visibility, and for residential developers to build more projects that house students.
The market for attracting office tenants will remain very competitive.
Portman's 1020 Spring office building - committed to be built before the pandemic created a drastic shift toward hybrid work models - is the newest Class A office building in the city, and has received praise for its amenities. But with some small exceptions, the new office development cycle appears to be ready to take a breather for the foreseeable future. The new tower rising over Tech Square - called Tech Square 3 and projected to deliver in 2026 - will include a combination of office and institutional uses. And the Rockefeller Group's 1072 West Peachtree 60-story skyscraper (expected to deliver in 2026) will include an office component. But generally in place of new construction, the emphasis will shift more toward existing office buildings in the district making investments to upgrade their spaces and attract new tenants, as Piedmont Office Realty Trust recently did with the 999 Peachtree building. This is leading to asking office rents to remain high at $42/SF for the Midtown submarket according to CoStar data.
Development is still pacing very strong heading into 2025.
The new year will begin with seven projects under construction and more that have cleared the development review process. The next projects that are set to deliver include the 1081 Juniper residential towers (487 units) and Modera Parkside overlooking the Rainbow Crosswalks (361 units), followed by the Rambler Atlanta student housing tower rising at Peachtree and 4th Streets (798 beds). Also noteworthy: these projects will add another 15K SF of retail space to the district.
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