Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA-Hanover Insurance Group Inc. has signed a 35,642-square-foot lease at AEW Capital Management’s 400 Northpark building at 1000 Abernathy Road. The seven-year deal is valued at approximately $5 million, according to Steve Morgan, senior vice president with Grubb & Ellis Co., which handled the transaction on behalf of the tenant.

Worcester, MA-based Hanover will relocate its regional office to the building from a location that it held within the Embassy Row Business Park right next door, says Morgan. The insurance group was attracted to the space because of its amenities, including two conference rooms, two restaurants, a coffee shop and car wash, all located within the three-building, 1.5 million-square-foot Northpark complex. The tenant’s new location also features a MARTA station adjacent to the building. “Because of market conditions the tenant was able to upgrade to a class A facility with more amenities and a higher quality at a very small premium,” says Morgan.

Boston-based AEW Capital owns all three buildings within the park, which was originally developed by Portman Barry Investments in 1986. The property within the Central Perimeter submarket is currently 90% leased, says CB Richard Ellis’ Richard Nash, who represented the landlord in the transaction. The newly leased space was previously occupied by Michigan-based Ford Motor Credit, which did away with its Atlanta space, Nash tells GlobeSt.com.

“This deal is very significant by simple virtue that there are no big deals being done right now in suburban Atlanta,” he says. “This submarket has the largest concentration of Fortune 500 companies in Atlanta, so our market is corporate America, which is currently in a recession. These firms will not move unless they absolutely have to, and when they do move it’s for a long-term lease and they want to make sure every cost to move is paid for by the landlord.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.