Atlanta Tech Village: A Bright Idea for Startups
Be nice. Dream big. Pay it forward. Work hard, play hard. These are the core values for the Atlanta Tech Village, the 100,000 square foot office building located at 3423 Piedmont Road in Buckhead, which was recently purchased for $12,375,000 in December 2012 by entrepreneur David Cummings after he sold Pardot for a cool $95 million (I still have not received a response for a loan). Atlanta Tech Village (ATV) will be the hub for mostly technology companies and start-ups and the overall concept behind ATV is to engage (and retain) the best minds in the Atlanta tech business while promoting a serendipitous community.
Space will be “leased” to small companies and individuals for 90-day memberships, focusing mainly on startups, tech companies, investors, creative souls and tech-related service providers. Current pricing is available on the Atlanta Tech Village website. Most of the available space only makes sense for companies in the 1-25 employee range. However, there are currently two large suites in the building available for lease to other companies in the 15-30 employee range. For a list of companies that have already signed up, visit their website.
With a capital improvement budget of $5 million, the ATV is about to undergo its first series of significant renovations, scheduled to be completed by late summer of 2013:
-The Atlanta Business Chronicle is reportedly moving out in spring 2013, vacating the fourth floor, and the companies under Cummings’ umbrella will relocate from the 3rd floor.
-The second floor is already being renovated to house members/companies in private offices, coworking space, shared conference rooms and event space.
-A coffee shop (Octane?) will open on the lobby-level space currently occupied by the Samuel Group
-A patio with Wi-Fi will be added, creating a relaxing atmosphere that will take advantage of Atlanta’s warm spring weather.
-Upgrades to the front drive and walkway, including a waterfall
-A more tech-friendly loft style in the main lobby and elevator lobbies.
-New event space for 200 people, with a training lab, game/hangout area, a gym and shared conference rooms.
The commercial real estate world can be a challenging task for most start-ups. Spending time and energy looking for flexible, short-term, “livable” office space in a large city like Atlanta will definitely take attention away from a startup’s main focus – getting their business up and running. Startups have traditionally had the following options when looking for office space:
- Executive Suites. Benefit: short term, move-in ready suites with a la carte services such as a receptionist, phone and internet, office furniture, beverage services and whatever else you might need. Negative: the price is not always right for a start-up’s budget.
- Sublease Space. Benefit: some subleases provide short term, move-in ready space with furniture and/or phones…and at reduced rental rates. Negative: “used” space and small sublease space in Atlanta is pretty much non-existent these days.
- Direct Space: Benefit: if you can agree to a longer term (3-5 years), the economics are better than a short term Lease plus the Landlord is willing to contribute money towards improving your space. Negative: one-year deals typically come at the quoted rental rate (if not higher) and you have to take the space “as-is,” warts and all.
The Atlanta Tech Village concept of “pay per head” pricing for a 90-day agreement is a NO BRAINER for startups. It removes a lot of the headaches of typical commercial real estate decision-making and simplifies it so that the startup can focus all their energy on growing their core business. Plus these companies get the intangible benefit of working with other bright minds, working together in a communal environment and sharing the same core values…potentially a huge bonus when you’re trying to attract top talent. If you’re one of the many technology start-ups looking for a toe-hold in the Atlanta area, Atlanta Tech Village is definitely worth a look.
Blog contributed by Wes Vaughan, Advisor, Cresa Atlanta
Find out how a tenant representation Advisor can ease the pressure of finding work spaces for your start-up business. Visit Cresa Atlanta’s website to learn more about our unique services.
This entry was posted on Wednesday, February 20th, 2013 at 8:54 am and is filed under Commercial Real Estate, Market Analysis, Office Space. You can follow any responses to this entry through the RSS 2.0 feed.
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