What's Happening in Atlanta: Mark Vollbrecht, Principal of Zeller Realty Group

ATLANTA, GA—Chicago-based Zeller Realty Group likes what it sees happening in Atlanta. The company recently acquired several properties in the Atlanta market, and company principal Mark Vollbrecht describes the company’s outlook for Atlanta in this Q&A.

Vollbrecht joined Zeller Realty Group in 1996. As principal, he engages in property acquisition, leasing and project management.

Q: ZRG recently acquired three office buildings in Atlanta: 100 Peachtree in Downtown, Resurgens Plaza in Buckhead and Premier Plaza in Central Perimeter. Why these buildings and why the Atlanta market?

Vollbrecht: We believe in Atlanta. The city’s population growth is double the national average, the job market is robust and the cost of living and doing business is low. Atlanta also provides superior connectivity on all levels, from walkable and bike friendly neighborhoods to an expanding public transportation network (MARTA) and the world’s busiest airport which provides an enviable number of direct flights both domestically and internationally. Hartsfield-Jackson International Airport truly makes Atlanta a gateway for global investments for both business and real estate. When you consider the factors that make a city an attractive place to do business, Atlanta knocks it out of the park.

Each of these buildings presents the ideal opportunity due to location, access to transit, architecture design and proximity to new residential development and centers of population growth. Premier Plaza, in Central Perimeter, offers the best four-way access to I-285 and GA-400 and exceptional local access to Buckhead and Brookhaven. The building is also located in a truly walkable retail district, which is a rare and extremely desirable feature. 100 Peachtree is located in the heart of Downtown Atlanta, where all of the major highways and MARTA rail lines converge. Downtown has seen a wave of revitalization efforts and substantial investment from corporations, universities and the public sector. The vitality of Downtown Atlanta is exciting. Our most recent investment, Resurgens Plaza, is one of Atlanta’s only office buildings with direct, covered access to MARTA. This linkage provides employers at Resurgens Plaza an enhanced ability to recruit from the 20,000+ TOD residential units constructed in Atlanta over the past five years. You can travel from Resurgens Plaza to virtually any major city in the world on a direct flight without ever going outside. That’s powerful.

Q: Briefly tell us about ZRG’s repositioning strategy.

Vollbrecht: We’re committed to developing a unique, community-oriented experience within each of these office buildings and investing both capital and personnel to offer cutting-edge facilities, hospitality-inspired services and five-star amenities to our tenants. We’re focused on adding amenities and services that promote tenant interactions and communal activities, not only connecting tenants with one another but also to the surrounding neighborhood. This hospitality-driven approach provides tremendous value to our customers, our tenants; in turn, this adds value to our assets. As the owner and operator of these buildings, we have a vested interest in the success of our tenants and the communities we serve.

Q: You mention a connection between hospitality and the workplace experience. Can you expand?

Vollbrecht: Curating a holistic connected community workplace experience resonates with top talent – from millennials to baby boomers. We believe every tenant is our guest and it’s up to property management and ownership to make their stay as invigorating and enjoyable as possible. As the line between work and play continues to blur, it’s becoming even more important to provide work/life balance, meaningful experiences in the workplace and opportunities to connect with other tenants and the surrounding neighborhood. Today’s employee cares deeply about company culture, purposeful work and the office environment; in fact, the workplace is now viewed as an extension of company culture. Employees often weigh employer reputations and workplace experiences when making job choices, making corporate real estate a vital tool in attracting and retaining top talent. Plus, tenants weigh workplace experiences when deciding in which building to sign a lease. According to CBRE, 88% of tenants believe that the quality of property management has a strong or very strong impact on the decision to renew a lease. Similarly, 87% believe that good building management plays an important or very important role in employee retention.

One of the ways we implemented this strategy at 100 Peachtree is by hiring a community engagement manager, who is charged with creating a dynamic workplace community through event programming and custom crafted services. In addition to enhancing tenant-to-tenant and tenant-to-management relations, the community engagement manager is responsible for facilitating partnerships with community organizations in Downtown Atlanta, such as Central Atlanta Progress, Atlanta Downtown Improvement District, Rialto Theater, Theatrical Outfit and Georgia State University. She also serves as the main contact for vendor programming and event coordination, which includes sponsoring, advertising and co-hosting events to increase 100 Peachtree’s activity within the surrounding Fairlie-Poplar neighborhood and Woodruff Park. By engaging our tenants and the surrounding neighborhood with exciting events and creating collaborative relationships with community organizations, the community engagement manager fulfills a critical role.

Q: What other amenities appeal to today’s office tenants?

Vollbrecht: According to Cushman & Wakefield’s recent report, Space Matters, Millennials are now the largest generation in the workforce, and their job satisfaction is driven by flexibility, work/life balance and amenities. According to the report, fitness centers, conference facilities, outdoor space and tenant common areas are among the top in-demand amenities.

Reinvigorated spaces, such as activated lobbies, tech-enabled conference facilities and rooftop terraces, further set our properties apart as premier office destinations. For example, the urban views from Resurgens Plaza’s new rooftop terrace will rival any in the city and experiencing those astonishing views from a green outdoor living room at your workplace is an unparalleled competitive recruiting advantage for our tenants. It’s also important to go the extra mile to make these “third spaces” flexible and practical, whether that’s by providing staging rooms and moveable furniture to accommodate events, extra counter space to ensure catered events run smoothly or lofted workspace to put extra vertical space to use. Paying attention to these details can transform your space from good to great.

Furthermore, commercial real estate owners must provide workspaces that not only meet the physical needs of tenants, but also their ever-growing digital needs. Digital connectivity is a key differentiator. Resurgens Plaza recently earned a coveted Gold Wired Certification from WiredScore as one of Atlanta’s “best connected buildings.” This is a powerful point of difference that we showcase to current and prospective office users.

Q: How has coworking impacted your industry?

Vollbrecht: Coworking has been a great thing for the commercial real estate industry. The increase in coworking’s popularity coincides with the rise of the gig economy, in which more workers operate as independent contractors. The workplace overall is becoming more fluid to match the needs of a modern business and employee. As tenant demand for more flexible space options grows, building owners must adapt to occupier needs. But, flexibility in both space and leasing terms comes at a premium price. Coworking  and the flexible space model proves that tenants are willing to pay a premium for a community environment rich with curated events, hospitality style lobbies and furnishings, communal spaces that facilitate social interactions and nontraditional leasing models.

Q: What’s the demand for spec suites?

Vollbrecht: The demand for spec suites is strong, and the shift towards coworking and flexible workspace goes together with this trend. Moving office spaces can be time-consuming and stressful. Spec suites offer an easy, turnkey solution. For startups or young companies that have outgrown their coworking space, move-in ready spec suites in community-driven office buildings provide the flexibility, common areas and amenities they’re accustomed to while providing the private workspace they need. Plus, people are used to seeing staged products, whether shopping for a home or an office. I call this the “HGTV effect,” and it’s powerful because it paints a compelling picture for what the tenant’s office space could become.

ZRG’s spec office program at 100 Peachtree, known as “Spur,” takes this turnkey spec suite concept to the next level. We’ve engaged four local architects to create four office suites designed to engage the community in a discussion on workplace trends and the future of office design while pushing tenants to the next level of creativity and productivity.