Atlanta, GA, August 26, 2025
News Summary
The iconic Peachtree Center, consisting of six office towers and a food hall in downtown Atlanta, is now on the market with an undisclosed asking price. Current vacancy rates range from 27.4% to 79.6%, reflecting challenges in Atlanta’s office market as the previous owner defaulted on the mortgage. With a total area of 2.5 million square feet, the complex’s market dynamics highlight increasing demand for high-quality office spaces despite a decline in overall leasing activity. JLL is representing the seller in this significant commercial real estate opportunity.
Atlanta, GA – The six office towers of Peachtree Center in downtown Atlanta have been officially listed for sale by JLL, with the asking price undisclosed. This significant commercial complex encompasses 2.5 million square feet of office space along with a 115,000-square-foot food hall. Current vacancy rates for these office towers vary widely, ranging from 27.4% to as high as 79.6%, according to data from CoStar.
Noteworthy tenants within the office towers include the U.S. Nuclear Regulatory Commission, Habitat for Humanity, and John Marshall Law School, as well as various law firms. However, the overall downtown Atlanta office market has faced persistent struggles, particularly as businesses increasingly favor locations in Midtown and other nearby neighborhoods.
The property’s previous owner, Banyan Street Capital, defaulted on its mortgage in 2022, prompting the assignment of the property to special servicer Situs AMC. Torchlight Investors is currently overseeing its management and listed the Peachtree Center properties for sale in an effort to recover capital for bondholders who expect timely repayments.
The Peachtree Center office towers are associated with an outstanding loan amounting to $115.3 million, which carries a variable rate and involves only interest payments. This loan is backed by the J.P. Morgan Chase Commercial Mortgage Securities Trust 2018-PTC. Its appraisal value is estimated at $121 million, according to JLL, indicating potential trades at a reduced price due to ongoing difficulties in attracting high-quality tenants.
Opened in the 1960s, Peachtree Center played a crucial role in rejuvenating downtown Atlanta and was designed by architect John Portman. Given the property’s historical significance, the listing by JLL allows for offers on the entire Peachtree Center or for its individual components. Richard Reid and his team at JLL represent the seller in this process.
The broader landscape of the Atlanta office market remains challenging, with leasing activity experiencing a 45% decline in the second quarter of this year compared to the same time last year. The overall pace of office leasing activity in Metro Atlanta is currently 34% below the averages recorded between 2015 and 2019, as many companies hesitate to make leasing commitments amidst ongoing economic uncertainties.
Market dynamics reveal a growing disparity between high-end Class A office spaces and lower-quality Class B properties, with high-quality options still in demand, particularly in Midtown, where competition is fierce due to limited availability. In contrast, the sales market has seen significant improvements, reflecting varied trends between leasing and sales.
While the leasing market stagnates, several significant developments continue to progress in the area, including the $5 billion mixed-use project, Centennial Yards, situated near the Mercedes-Benz Stadium. Initial office components have been scaled back in favor of focusing on multifamily residential developments. The shifting priorities have driven landlords to adapt; some outdated properties are being demolished or converted for alternative uses as negative absorption trends emerge.
Despite the economic challenges and shifts in the leasing landscape, the sales market has witnessed an uptick, demonstrating resilience and adaptability among investors and developers in Atlanta’s dynamic real estate environment.
Frequently Asked Questions
- What is being sold at Peachtree Center?
- The Peachtree Center complex includes six office towers offering a total of 2.5 million square feet of office space and a 115,000-square-foot food hall.
- Why is Peachtree Center being sold?
- The previous owner defaulted on the mortgage, and a special servicer is now handling the sale to recover capital for bondholders.
- What is the current vacancy rate at Peachtree Center?
- The vacancy rates for the office towers range from 27.4% to 79.6% according to CoStar data.
- What was the appraisal value of the Peachtree Center properties?
- A public appraisal valued the six buildings at $121 million, according to JLL.
- What are the trends in the Atlanta office market?
- The overall office leasing in Metro Atlanta is 34% below the average pace from 2015 to 2019 and leasing activity has declined by 45% compared to last year.
Peachtree Center Key Features
| Detail | Information |
|---|---|
| Location | Downtown Atlanta, GA |
| Office Space | 2.5 million square feet |
| Food Hall Size | 115,000 square feet |
| Vacancy Rates | 27.4% – 79.6% |
| Current Owner’s Status | Special servicer managing the sale |
| Outstanding Loan | $115.3 million |
| Appraisal Value | $121 million |
| Market Trends | Leasing activity down 45% YoY |
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Additional Resources
- CoStar: Landmark Atlanta Office Complex Hits Sales Block in Challenging Office Environment
- Colliers: 2025 Q1 Atlanta Office Market Report
- Bisnow: Atlanta Trails Nation in Office Leasing Activity Over Past Year
- AJC: Atlanta’s Luxe Office Market is Like Musical Chairs
- Buckhead: Buckhead’s Largest Office Complex Changes Hands in $200M Foreclosure Sale
- Wikipedia: Atlanta
- Google Search: Atlanta office market
- Google Scholar: Atlanta real estate market
- Encyclopedia Britannica: Atlanta
- Google News: Atlanta office sales
Author: STAFF HERE ATLANTA WRITER
The ATLANTA STAFF WRITER represents the experienced team at HEREAtlanta.com, your go-to source for actionable local news and information in Atlanta, Fulton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as vibrant music festivals like Shaky Knees and Music Midtown, major cultural celebrations including Dragon Con and the Atlanta Film Festival, and iconic sporting events like the Peachtree Road Race. Our coverage extends to key organizations like the Metro Atlanta Chamber of Commerce and the Atlanta Convention & Visitors Bureau, plus leading businesses in logistics, beverages, and retail that power the local economy such as Delta Air Lines, The Coca-Cola Company, and The Home Depot. As part of the broader HERE network, including HEREAugusta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
