One of the world’s largest accounting firms has had its name emblazoned on a downtown Atlanta office tower for years, but the company will soon have a new corporate home to the north in Midtown.
EY, formerly Ernst & Young, confirmed to The Atlanta Journal-Constitution it will move its Atlanta office to the Spring Quarter tower in Midtown next summer. The accounting firm will occupy three floors, which will soon undergo a tenant build-out campaign, according to building permits filed with the city.
The forthcoming move is among the larger recent corporate relocations in Atlanta, following a period of tepid leasing activity spurred by the COVID-19 pandemic’s effects on the office market. It’s also another signal that Midtown’s lineup of shiny new towers is outperforming other parts of the city, especially downtown’s roster of older buildings.
“We are thrilled to announce EY Atlanta’s upcoming move to the Spring Quarter building next summer,” Regenia Sanders, EY Atlanta office managing partner, said in a statement. “Our new space will further enable EY Atlanta professionals to help our clients shape the future with confidence.”
Credit: arvin.temkar@ajc.com
Credit: arvin.temkar@ajc.com
EY is currently the anchor tenant at 55 Allen Plaza, occupying about a third of the 14-story building overlooking the Downtown Connector. EY’s logo is prominently displayed atop the glassy tower, which has struggled with debt issues in recent months.
The building underwent a deed-in-lieu-of-foreclosure transaction March 12, a process initiated by Texas-based Lone Star Funds after missing debt payments. The building was acquired by its lender, a subsidiary of Aflac Inc., at a value of $57.8 million, a 27% drop in value from when Lone Star Funds acquired the tower in 2020.
As of the March transaction, the building was 66% occupied — a figure that includes EY in the building. It’s unclear what will happen to the company’s logo on the building, or if similar signage will appear at the Spring Quarter building, also known as Ten Twenty Spring.
Credit: Courtesy of CoStar Group
Credit: Courtesy of CoStar Group
Built by Atlanta-based development giant Portman Holdings, Spring Quarter is part of the revitalization of the historic H.M. Patterson & Son’s Spring Hill Chapel in Midtown. It opened in December and boasts a hotel-like feel aimed at attracting tenants looking for the heights of luxury.
It offers 530,000 square feet of leasable office space, the most new workspace to join Atlanta’s office market in 2024. It’s also more office space than what is currently under construction in all of metro Atlanta, representing the potential end to an office development wave that transformed Midtown.
“There’s not another new building (like this) coming,” Travis Garland, managing director for developer Portman Holdings, told the AJC when debuting the finished building. “When you look at the finite amount of really high quality space … we’re encouraged by this.”
Portman did not immediately respond to requests for comment on EY’s lease signing, the first confirmed office tenant at Spring Quarter. The terms of EY’s lease were not disclosed, but the building permits show the firm will occupy floors 14-16, totaling 95,000 square feet.
Atlanta’s office market has slowly regained momentum since the pandemic shutdown, but the second quarter was a step back for leasing activity.
The number of finalized leases by square footage declined 45% during the second quarter in Atlanta’s urban submarkets compared to a year prior, according to Avison Young. It’s a sign that companies are taking their time before finalizing a lease or are willing to be patient to wait for their desired workspace to hit the market.
EY confirmed to Bisnow in January it was scouring Midtown for potential office options, actively negotiating.
Many companies are still unsure of how much office space they need given the lingering popularity of hybrid work schedules. Others are struggling with forecasting future needs because of uncertainty related to tariffs and other factors, observers say.
About the Author
Keep Reading
The Latest
Featured
