AT&T Inc. (NYSE: T) is planning a major office consolidation that will have the telecommunications giant vacate an iconic 46-story Midtown tower.
The move will have a ripple effect in the city, putting more than 1 million square feet of office space in play in Atlanta’s hottest submarket.
AT&T will vacate three buildings, including its prepaid service unit, Cricket Wireless' headquarters, by 2021 as leases expire. Combined, AT&T would give up more than 2.5 million square feet of office space, according to CoStar data.
AT&T will consolidate Atlanta operations into two Midtown office buildings and three buildings at its Lenox Park campus. The relocations are expected to be completed by April 2020.
"While these moves will reduce our physical footprint in metro Atlanta, they also allow us to reduce operating expenses and make better use of office space for more collaborative work environments," according to an internal memo obtained by Atlanta Business Chronicle.
The AT&T office consolidation comes as the telecommunications giant scales back some operations in Atlanta.
The most significant move involves the 1.4 million square foot AT&T Midtown Center at 675 W. Peachtree St. AT&T occupies 1.2 million square feet in the skyscraper, in addition to about 430,000 square feet in an attached support center, according to CoStar.
The AT&T-logoed Midtown Center tower, connected to the MARTA North Avenue station, is blocks from Georgia Tech, a major generator of tech talent and research.
As of late last year, the office tower was said to be under consideration by a company eyeing Atlanta and other cities for a major expansion or relocation.
"Midtown is showing its attractiveness not only to Atlanta firms, but firms from across the globe looking to get close to Atlanta’s in-town talent," said Scott Demyer, a vice president at Colliers. "From an economic development standpoint, the availability the building provides is just another opportunity to land a sizeable HQ relocation to the district”.
In addition to the Midtown tower, AT&T will vacate offices at 1055 Lenox Park Blvd., and 575 Morosgo Drive in Buckhead. The anticipated initial move date is not until late 2018 and 2019, according to the memo.