Software maker Fiserv currently has its operations spread across six buildings in Gwinnett County, most in the Peachtree Corners area. The company plans to consolidate their offices into the former AT&T complex, Cobalt Center, in Alpharetta, which is comprised of more than 376,000 SF. More than 2,000 employees will relocate from the Gwinnett offices to the new campus and the company plans to add as many as 500 additional workers in coming years. The relocation project will cost Fiserv a reported $41 million. Company reps state that while this will be their largest operations center in the country, it will not act as Fiserv’s national headquarters at this time.
Fiserv was encouraged to move to Alpharetta by the number or large software and tech firms that already have operations in this city, including Microsoft, Hewlett-Packard, and Verizon. And unlike submarkets inside or closer to the perimeter, Alpharetta had chunks of space large enough to meet Fiserv’s needs. The new operations campus, while in a different submarket, is only 11 miles from their current locations in Gwinnett; the company hopes this will make for a smoother employee transition.
As Fiserv vacates Gwinnett, it will leave behind a huge hole. In fact, their exodus will take the submarket’s vacancy rates from 21.8% to 24.3% instantly. There are a few factors that could potentially help the submarket, however. Most of Fiserv’s six Gwinnett leases don’t expire til 2016, so the building owners and landlords have a few years to revamp their marketing strategy and reposition themselves for new tenants. Another factor that could positively affect the submarket after Fiserv leaves is in the amount of activity in the Central Perimeter submarket. State Farm has gobbled up almost every substantial chunk of space in the submarket, and as Midtown and Buckhead’s vacancies continue to decrease, the Northeast submarket is going to become a great alternative for those who can’t “fit” anywhere else.Share