New Trends in Development

Annual Trends

Tech companies have been flocking to Atlanta in recent years, and who could blame them? Reps from these progressive start-ups cite many reasons for choosing Atlanta, but here are the ones we hear most:

Lots of total talent – Georgia Tech, Emory University, and Georgia State create a strong and deep pool of young IT professionals for companies to choose from.

Atlanta is the email marketing capital of the world – major players like SilverPop and MailChimp are headquartered here. ExactTarget, who purchased Pardot from David Cummings for $95 million last year, is also relocating their regional headquarters to Atlanta.

Abundance of opportunity zones – Atlanta makes it easy (and attractive) to relocate your business and provides great incentives and tax breaks for creating jobs.

Lower cost of living – compared to other US cities, Atlanta has a relatively low cost of living (which great for employers and employees alike). Residents find they don’t have to make as much money to enjoy a similar lifestyle as those living in a bigger city.

Convenient transportation – besides having the world’s busiest airport (Hartsfield-Jackson International), Atlanta’s public transit system, MARTA, is “key to attracting tech employees.” Living in or around Atlanta makes business travel convenient and more affordable.

Receptive market – Atlanta is extremely receptive to and embraces technological advancements. On top of that, Atlanta is not quite as advanced technologically as cities like New York, LA, and Chicago, so there is still huge room for movement and growth.

They’re not alone – Atlanta is home to more than 250,000 It professionals and 13,000 tech companies , including major players like Pandora, Square, AirWatch, ExactTarget, Pardot, Search Discovery, TapJoy, and Oglivy & Mather.

The incredible tech pipeline that Atlanta has built is something no one saw coming four years ago. That being said, the pipeline is here, and developers and leasing agencies are racing to accommodate these young, fast-growth tech companies. In order to get these types of companies into space that accommodate their constantly growing needs, both tenant and landlord brokers have had to reevaluate their leasing strategy and better align their thinking with that of a decision-maker at a fast-growth tech company.

There are four main factors weighing on the mind of every tech company when making real estate decisions:

Location – the battle for top talent is growing fierce, and these companies need to be located where the creative class lives.

Style – tech companies want a space that reflects their hip, modern culture. They are much less interested in fancy corner offices and much more interested in open workspaces to promote collaboration and shared ideas.

Top-Notch Technology – these companies need the best technology within their space in order to perform and succeed. However, we are seeing an increased demand for advanced technology outside of their space as well; common areas, cafes, and outdoor pavilions are expected to have Wi-Fi available. State-of-the-art conference and training facilities are also creeping into this requirement.

Flexibility to Grow – this is perhaps the largest concern for tech companies going through the real estate process. Companies who operate like most young tech start-ups have the ability to add numerous people at one time. Landlords are beginning to accommodate this need by offering moveable walls and raised flooring, options that allow these companies to expand quickly with minimal hassle.

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