After publishing its 2025 Atlanta Office Investment Forecast Report, Marcus & Millichap’s John Leonard commented, “Atlanta’s office market is at a turning point, with corporate expansions and investor confidence driving renewed momentum. As vacancy rates decline and demand for high-quality office space strengthens, the metro is well-positioned for growth in 2025.”  Insights include: 

• Atlanta’s employment market will expand by 27,000 jobs in 2025, with 2,000 new office-using roles, supporting long-term leasing demand. 

• Vacancy rates are projected to decline to 19.4%, driven by corporate expansions and reduced new supply. 

• Office construction will slow to its lowest level in a decade, with inventory growing by 0.4%, primarily in Midtown, Sandy Springs and Alpharetta. 

• Northwest Atlanta and Northlake stand out as investment opportunities, with triple-digit vacancy declines and rent growth exceeding 1% in 2024. 

The average asking rent will rise to $27.52 per square foot, supported by falling vacancy rates and a limited construction pipeline. 

Life science REIT IQHQ said Tuesday it had entered into an early lease renewal and long-term extension with Generate:Biomedicines at the Innovation Park life science district in Andover, MA. Innovation Park houses Generate’s 75,000-square-foot cryogenic electron microscopy laboratory, one of the largest laboratories of its type in the U.S.

IQHQ acquired the Innovation Park campus between 2020 and 2021 and developed it into a 340,000-square-foot life science hub for leading biotechnology and life science manufacturing companies in the greater Boston market. “We are proud that Generate:Biomedicines, a global leader in generative biology, has made a long-term commitment at IQHQ’s Innovation Park district to accelerate breakthroughs in therapeutic discovery and development at their cutting-edge CryoEM laboratory,” said Tracy Murphy, co-CEO and co-founder of IQHQ.

Innovation Park is one of four life science districts IQHQ owns in Greater Boston. Leasing at the park is overseen by Colliers’ Curtis Cole and Tim Allen.

Virco Manufacturing, a supplier of furniture and equipment for K-12 schools, has signed a multi-year renewal of its 559,000-square-foot space in the Prologis-owned 2027 Harpers Way in Torrance. It represents the first lease renewal for The Klabin Company/CORFAC International that involves the installation of solar panels for a client’s energy consumption. The panels are set to be installed next year.

The Klabin Company’s Frank Schulz III represented Prologis in the 65-month lease transaction. Virco was represented by David Prior and Todd Taugner of The Klabin Company. Virco will maintain its L.A.-area headquarters at the facility set on more than 23.5 acres near the intersection of Van Ness Avenue and Del Amo Boulevard in the heart of the South Bay industrial market.

“Due to Prologis’ incredible commitment to its customers, we were able to structure this lease for Virco to keep them in this location for years to come without any disruption to its operations,” said Prior.

The last few years have proven resilient for student housing, with the sector remaining strong. We spoke with Jack Palms, VP of Acquisitions at RREAF Holdings, on why student housing stands out and what the future holds for the sector.  

Q: With a notable surge in investor interest, what factors do you believe are driving this enthusiasm for the student housing market right now?

A: Investors have always had a strong interest in multifamily properties, which is, in essence, what student housing imitates. However, student housing offers owners and investors an additional line of security. Year-over-year student housing has continued to have histrical performance both in terms of rent growth and occupancy.

Q: How does the investment landscape in student housing differ from other real estate sectors, and what advantages does it offer to investors? What specific attributes or metrics are investors prioritizing when evaluating opportunities in student housing?

A: Student housing allows owners/developers to “lock in” leases for an entire year and not have the physical occupancy volatility of traditional multifamily. Student housing typically has an additional layer of credit through parental guarantees.

Student housing investors will investigate metrics such as school infrastructure, enrollment, enrollment projections, new school initiatives, proximity to campus, campus development activity, and school conferences. At RREAF, we are focused on acquiring student housing assets located near Power 5 Schools and Tier 1 Research Institutions.

Q: How does risk assessment differ in student housing compared to more traditional real estate investments?

A: Simply put, your tenants are students in college, which comes with different levels of credit, insurance, and asset damage risk. This can come in the impacts of occupancy or rent growth, and these risks are always weighed into the “risk-adjusted returns” for the asset type, whether that is a core, value-add, or development deal.

What are the key drivers that make student housing a resilient investment option, especially in today’s challenging economic climate?

In previous challenging economic climates, we saw an increase in higher education as this tends to correlate with a tougher labor market. This makes student housing somewhat predictable in that preleasing and lease terms provide a predictable revenue stream for owners and investors and reduce the risk of vacancies.

What factors could influence growth over the next 5-10 years? Looking ahead, how do you see the future of student housing continuing to evolve? 

With new technology replacing several jobs, there might be a shift in people wanting/needing to attend school to enter the workforce. Students will continue to seek out the large tier 1 institutions, prioritize assets near the campus, and provide notable amenities.

For an extended version of this interview, click here to visit ApartmentBuildings.com.

Alexandria Real Estate Equities, Inc. executed a 10-year lease with Vaxcyte, Inc., a clinical-stage biopharmaceutical company, for a total of 258,581 square feet at 825 Industrial Rd. on the Alexandria Center for Life Science – San Carlos mega-campus. The lease includes new space and an extension of the lease term for its existing space.

Vaxcyte has been an anchor tenant at the Alexandria Center for Life Science – San Carlos since it opened in 2021. The purpose-built mega campus features significant options for future growth in addition to essential Labspace infrastructure in a location offering convenient access to Highway 101 and walkability to Caltrain, boutique shops and restaurants. 

The REIT did not identify any brokers on either the ownership side or the tenant side. The Alexandria Center for Life Science – San Carlos currently is 97.4% occupied, with approximately 1.4 million square feet of future development opportunities as of Sept. 30.

Anthony Lawrence-Belfair, a furniture company specializing in the manufacturing, distribution, repair and restoration of furniture and home goods, signed a long-term lease for 25,214 square feet of warehouse space and 19,312 square feet of land at Simone Development Companies’ 1200 Zerega Ave. in the Bronx. The new space will serve as a showroom and studio, supporting the company’s relocation from Long Island City.

Simone Development was represented by in-house leasing and legal teams alongside Mat Diana of DY Realty, while Anthony Lawrence-Belfair was represented by Helen Paul of Cushman & Wakefield and Joseph Caputo of Exit Realty Premier.

“With its strategic location, ample outdoor storage options, and flexible space configurations, 1200 Zerega Ave. is an ideal fit for companies like Anthony Lawrence-Belfair,” said Josh Gopan, VP of leasing for Simone Development.

The lease secured the final warehouse and ground-floor space offered at 1200 Zerega Ave. The property has a remaining 12,891 square feet of office space available on the second floor.

Woodmont Industrial Partners has fully leased 2 Terminal Rd. in Lyndhurst, NJ. The tenant, Nemo Tile, LLC, will occupy the 30,046-square-foot warehouse and distribution facility, located at the intersection of Routes 3 and 17, on a 65-month term. Lee & Associates’ Michael Schaible and Troy Wisse represented Woodmont, and Newmark’s Daniel Reider represented Nemo Tile. 

In March 2024, Woodmont completed a multi-million-dollar comprehensive capital improvement program to upgrade the entire premises. Specific improvements include a new roof and front entrance; motion-sensor LED lighting; painting of the interior and exterior; new paving and landscaping; 1,800 square feet of new office space; and additional loading doors.

“The successful lease-up of 2 Terminal Rd. illustrates Woodmont’s expertise in delivering exceptional facilities tailored to meet tenants’ needs,” said Anthony Amadeo, EVP of Woodmont. “As demand in the area continues to grow, we remain committed to providing high-quality facilities that elevate the region’s industrial landscape.” 

Drawbridge Realty has extended a 60,002-square-foot lease at 170 Rose Orchard Way in San Jose to Beckman Coulter, Inc., a developer and manufacturer of biomedical testing products. The tenant is a subsidiary of publicly traded Danaher Corporation.

“We’re delighted to be able to extend Beckman Coulter’s lease for an additional 10 years,” said Mike Embree, managing director and SVP, Drawbridge Realty. “This will maintain 100% occupancy at our Rose Orchard campus. Beckman Coulter conducts important work in diagnostics and life science, and we are happy to support the continuity of that work.”

Drawbridge Realty acquired Rose Orchard, a five-building office/R&D campus totaling 315,000 square feet, in 2019. The property has been 100% leased since June 2023, when global semiconductor company NXP signed a long-term lease for 40,050 square feet.

Beckman Coulter was represented in lease negotiations by Christopher Shepherd of CBRE. Steve Horton, Colin Feichtmeir, and Kelly Yoder of Cushman & Wakefield represented Drawbridge Realty.

Seattle Mayor Bruce Harrell recently signed a proposed bill that would promote the conversion of vacant and underused buildings into affordable housing.

The measure would help developers looking to convert existing buildings from commercial to residential uses. The proposed changes aim to make it easier and more straightforward to convert existing structures into residential use, supporting housing development in the city, particularly in and near downtown.

“While we know there remains a need for office space, this effort will give us flexibility to help optimize our built environment and create the downtown we want to see–a thriving workplace and vibrant community for families and residents of all backgrounds,” said Harrell. “These changes are a critical step in moving the idea of office conversion to a reality.”

The proposed legislation would establish clear guidelines for residential conversions and provide broad exemptions from design development standards. The changes would also reduce the cost of conversion to residential use by exempting conversions to housing from the City’s Mandatory Housing Affordability (MHA) requirements.