CP Group Signs Major Law Firm to Atlanta’s Tallest Tower

Eversheds Sutherland has leased more than 94,000 square feet of office space at Bank of America Plaza in Midtown Atlanta. CP Group is owner of the property.

CBRE’s John Schlesinger represented the tenant, and his colleagues Jeff Keppen and Nicole Goldsmith represented the landlord.

This makes for 170,000 square feet leased at the building in the past six months, including four new tenants, one renewal and two expansions. Bank of America Plaza is renowned for being the tallest building in the Southeast, with nearly 1.4 million square feet of Class A workspace.

This deal extends the sector’s overall momentum this year after last year’s leasing activity met pre-pandemic levels, according to Savills.

So far this year in Atlanta, Avison Young reported that only 12 percent of law firms that have signed deals are downsizing their space, 23 percent are expanding and 26 percent are maintaining their original square footage when renewing their lease. The remaining 39 percent comprises new deals, which include new tenants and locations.

This trend is anticipated to continue since law firms are a heavy office-using industry—the third-busiest sector according to Avison Young’s Office Busyness Index.

While a couple of tenants announced major downsizes within Atlanta, this breakdown and comparison shows that law firms, whether they have an Atlanta presence or are new to the area, are currently active in the market and making moves on committing to office space, according to Avison Young’s analysts.

“Atlanta has seen an influx of new-to-market and existing law firms expanding their presence as the city continues to capitalize on its pandemic-induced population boom,” Rick Nash, principal, consulting & advisory tenant representation occupier services, Avison Young, Atlanta, told Commercial Property Executive.

The region benefits from a strong talent pipeline with many universities and law schools, Nash added. “Peachtree Street in Midtown has become a hotbed for office leasing activity, including law firms, given the multitude of residential, entertainment and dining options as employers look to recruit talent and encourage employees to return to the office.”

Atlanta’s strong office leasing activity

Cushman & Wakefield reiterated Atlanta’s stellar second half, reporting that the market saw 226,500 square feet of leasing activity in the third quarter, higher than the first two quarters combined.

Atlanta’s legal leasing levels in the first half of 2024 were 41 percent lower year-over-year compared to 2023. However, strong leasing activity from firms in the market, along with Morris, Manning & Martin’s 104,000 sf relocation—the largest lease nationally in the third quarter of 2024—has tipped the scales, placing Atlanta’s legal leasing activity 29 percent higher year-over-year than it was through the third quarter of 2023.

Despite the shift toward flexible work arrangements, prestigious law firms continue to commit to substantial office spaces in prime locations, recognizing the importance of in-person collaboration and the need for secure environments to handle sensitive information.

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There is also a growing emphasis on workplace amenities and experience in the legal sector, with features like state-of-the-art fitness clubs, food halls and modern conference centers becoming increasingly essential in attracting and retaining top talent, according to Edith Gonzalez, managing director, professional services, JLL Work Dynamics.

She told CPE that the choice of location in Midtown Atlanta, near Georgia Tech and numerous Fortune 500 companies, reflects another key trend: law firms are gravitating toward mixed-use, amenity-rich areas that offer easy access to clients, talent pools and innovation hubs.

“This strategic positioning is crucial for firms aiming to stay competitive in the legal services market,” Gonzalez said. “The deal [emphasizes] the ongoing importance of prime office space for law firms while showcasing the evolving expectations around workplace amenities and location—a trend likely to continue in major legal markets across the country.”

Key renewal at Citigroup Center

Also this month, Kluger, Kaplan, Silverman, Katzen, Levine, P.L. announced it has renewed its commitment to Citigroup Center, relocating to a new premier 17,757-square-foot office space within the 34-story, Class A office tower.

Colliers Vice Chair Stephen Rutchik represented the long-term tenant in the lease renewal. JLL’s Steven Hurwitz, Doug Okun and Madeline Fine represented the landlords, Monarch Alternative Capital, Tourmaline Capital Partners and CP Group, in the transaction.

“Kluger Kaplan’s strategic relocation within Citigroup Center reflects a broader trend of law firms prioritizing workspace quality and employee experience,” Rutchik told CPE.

Their move to a new office allows them to create a state-of-the-art workspace with a modern layout that can accommodate their growing team and enhance collaboration, Rutchik explained. “The firm’s choice to stay in the recently renovated Class A office tower with stunning bay views and premier amenities demonstrates how top-tier law firms use their physical space as a competitive recruitment and client engagement tool.”

Opting for relocation

Many law firms are opting for relocation, according to Peter Billmeyer, SIOR, co-founder & CEO of Bespoke Commercial Real Estate and president of the SIOR Chicago Chapter.

Law firms, like most companies, have had to adapt to a post-COVID world, and what was an acceptable workplace no longer is and likely will never be again, according to Billmeyer.

“We are seeing a major flight to quality, with some old-school ‘White-Shoe’ firms downsizing and settling into their hybrid work strategies. At the same time, some upstarts are growing dramatically.”

It is refreshing to see law firm leaders putting their cultures and teams before their P&L, Billmeyer observed. “Old and new firms deserve great credit for evolving, doing more with less and being committed to a people-focused work environment. We can only hope that leads to a higher quality of life and more reasonable hourly rates.”