A Denver co-working company that has targeted metro Atlanta for 10 locations has leased space in the Central Perimeter for its second location.
Office Evolution has leased 6,900 square feet on the first floor of the 94,575-square-foot, six-story Perimeter Center East building in Dunwoody. The location is expected to open in fall 2018. Andy Bean and Scott Thompson are the lessors through their franchise Atlanta Office Ventures LLC.
The company’s first Atlanta area location, located in Alpharetta near the Avalon mixed-use development, had a soft opening April 27. A grand opening is set for June 6.
The Perimeter location lease is for about seven years, at an annual rate between $20-$25 a square foot, said Andy Bean, area director for Atlanta, Office Evolution, and part of a franchisee group that also includes Scott Thompson and Joe Casey. The franchise group expects to open the second location in August or September.
Like the Alpharetta location at 11720 Amber Park Drive, Building 2 in Parkway 400, the Perimeter location is on the ground floor to the left of the building entrance. What Bean likes about Perimeter Center East is that there are signalized intersections to the left or the right of the building, making access to Interstate 285 easier.
Trey Dove of Cushman & Wakefield represented Office Evolution in the transaction. Perimeter Center East was represented by Michael Howell, senior vice president – office at Lincoln Property Co.
In Central Perimeter, office space overall is leasing at $27.67 a foot full service, according to Scott Amoson, vice president and director of research for Colliers International Atlanta. Class A space is leasing at $29.99 per square foot full service. Central Perimeter had the highest quarterly increase in its average rental rate in the fist quarter, up 6 percent, Amoson said in an email. "This is mostly due to the delivery of 4004 Perimeter Summit, but also due to an increase in recent demand for space in the submarket."
The local Office Evolution franchise group owns the rights to open locations in metro Atlanta from the northern suburbs down to nearly the airport, Bean said. They are on the lookout for the third and subsequent locations, while at the same time keeping an eye on the local co-working market as more companies come in.
"I am always looking" for good locations, Bean said. But "It needs to be the right thing before we do it."
The Alpharetta location is "ahead of projections" as far as memberships, but Bean declined to give specific numbers. "We have a lot of traction now that we are open and people can see the space," he said, although the interior decor is not completedly finished. The company is adding art and furnishings prior to the grand opening, he said.
Office Evolution, which works with Cushman & Wakefield Inc. to locate real estate, had 35 locations open around the country as of January 2018 and planned to open another 30 through 2018, expecting to end the year with around 65 locations, founder and CEO Mark Hemmeter said.
Startup locations are usually 7,000–10,000 square feet, while conversions (Office Evolution buys an independent operator and converts it to the Office Evolution brand) can be up to 25,000 square feet.
The franchisee is the owner of the business, while Office Evolution supports the franchise with design, construction and site location real estate services; website; sales training; a national call center based in Denver; and office technology support. For that support, the franchisee pays the franchisor a royalty fee of 7.5 percent of revenue, Hemmeter said. Because it’s a suburban operation, Office Evolution "has to be more efficient," with centralized technology, billing and call center.
Office Evolution charges about $150 per month for open co-working space on a drop-in basis; $299 a month for the professional plan, which gives 24/7 access to the local office as well as all other Office Evolution locations across the country plus a virtual receptionist; and $1,100 a month (billed annually) for private office space, which comes with all of the professional plan amenities, said Andy Bean, area director for Atlanta, Office Evolution, and part of a franchisee group that also includes Scott Thompson and Joe Casey. A tiered payment structure ranges from month-to-month up to an annual contract, with better terms for longer commitments.
The Alpharetta location was slated to have 33 offices for permanent members, with the smallest office at 200 square feet, and drop-in space for up to 25.
Atlanta is the fifth largest co-working market in the United States behind Manhattan, Los Angeles, Chicago, and San Francisco, according to a Nov. 28, 2017, Cushman & Wakefield blog.