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ATLANTA-After scouting the metro area for the best deal, the Southeast regional division of New York-based Colgate-Palmolive Co. has renewed its 30,000-sf lease at the 100%-leased, 119,000-sf 2233 Park Lake Drive building owned by Parkway Properties Inc. of Meridian, MS.

The deal took 10 months to complete, from contract signing to closing. Kathi Haftings, a principal at Parkway Properties, represented her company. Billy Hobbs, a principal at Cresa Partners-Atlanta and Jason Jones, an associate at the same brokerage, negotiated for Colgate-Palmolive.

The brokers declined to disclose lease terms because of a confidentiality clause in the contract. But area brokers, not associated with the deal and familiar with the four-story, multi-tenant property off Highway 41 just north of Interstate 285, tell GlobeSt.com the lease was probably for 10 years at an estimated effective rent of $20 per sf for a total estimated aggregate value of $6 million.

“Colgate secured a very good deal in both financial and operational terms,” says Cresa’s Hobbs. “The company reviewed many options but ultimately chose to stay put and enjoy strong economic terms and continue the positive relationship with its landlord.” The tenant has 130 employees.

“Because of the potential consolidation of other company offices into its Atlanta facility, Colgate needed the option to redesign the layout of its offices,” Hobbs says. “Cresa Partners worked with Parkway Properties to achieve terms that satisfied both their needs, including flexible terms regarding the timing of the redesign construction.”

With office vacancies in metro Atlanta hovering at the 25% level in some submarkets, the Colgate-Palmolive renewal is considered a positive accomplishment for Parkway Properties, area brokers tell GlobeSt.com.

“The market seems to be picking up a bit, but we don’t expect to see strong growth until 2005, possibly later,” Hobbs tells GlobeSt.com. “Anecdotally, we know that companies are considering expansion. New companies are starting to increase. It appears much of the phantom space is being back-filled in larger companies, so it is the smaller businesses that are contributing to absorption, more so than the large ones.”

Hobbs adds, “Once the phantom space is filled, we believe the market will see some of the larger companies taking additional space, but not until at least 2005.”

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