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MARIETTA, GA-A corporate tenant’s decision to relocate its US headquarters to Minneapolis has given Mohawk Industries the opportunity to consolidate several smaller offices into a single space in a submarket with few options for large configurations. The Chatsworth-based flooring company signed a ten-year sublease with Coloplast Corp., the US arm of Denmark’s Coloplast Group, a medical device manufacturer and medical services provider, for a 60,000-sf office building at 1975 W. Oak Circle.

The single-story office/flex structure is located on 34 acres in Atlanta’s Northwest submarket. Sacramento, CA-based Panattoni Development Co. developed the building for Coloplast in 2005 under a sale/leaseback arrangement that included a neighboring 98,000-sf distribution center, which Coloplast continues to lease.

The project was valued at $10 million, and Coloplast’s lease agreement for both buildings was valued at about $50 million. The company broke ground a new $40-million facility in Minneapolis earlier this year.

Gannon Shepherd, a senior associate with Jones Lang LaSalle in Atlanta who was involved in the transaction, tells GlobeSt.com that the Northwest office submarket is relatively tight with a limited number of large blocks of office space available. There’s a fair amount of demand for space, he says, and calls the Mohawk deal a “great economic play in an efficient building with many upgrades.”

Shepherd and JLL managing director/senior vice president Duncan Gibbs represented Mohawk in the transaction, while Mike Gray, a senior vice president and project principal in Panattoni’s Atlanta office, represented Coloplast and Panattoni. The rent rate was not disclosed, though Shepherd says class B office rents in Northwest Atlanta range from $9 to $12 per sf annually on a net basis.

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