The pandemic has caused a decrease in demand for office space, but Atlanta's diversified economy could help its properties withstand the storm. Despite the uncertainty, construction continues, particularly in the Midtown submarket, which is home to 40 percent of all ongoing office development activity. The table below highlights the 10 largest office projects currently in progress, using data from Yardi Matrix. One of the most remarkable projects is Three Ballpark Center and the ThyssenKrupp test tower. Located at 1150 Spring St., this 12-story building will be the first phase of a larger mixed-use development.
It will include 15,000 square feet of retail space and 339 luxury rental units in a separate 12-story tower. In addition to a wide range of services, from bicycle storage to a rooftop terrace, the project will have an underground parking structure with 840 spaces. Developers are seeking LEED certification for this project. The health insurance company Anthem is the main tenant of Three Ballpark Center. The company already occupies the recently completed 360,000-square-foot Anthem Technology Center a short distance away at 740 W.
Portman Holdings handed over that property in February. Simon Property Group's One Phipps Plaza is another major office project underway in Bucktown. This remodel of the retail investor's Phipps Plaza shopping center is the largest office project underway in Bucktown. Construction stopped in early April due to the COVID-19 pandemic, although it could resume soon depending on the response to the health crisis. When finished, it will include 357,589 square feet of office space, a Nobu hotel and restaurant, a 10,000-square-foot dining room, and a 90,000 square-foot gym. Midtown Union is another large office project underway in Atlanta.
This 8.5-acre mixed-use project includes 350 multi-family units and 87,000 square feet of retail space in addition to its office component. It also features 1,900 parking spaces and amenities such as a 1-acre open area above a parking structure with a pool, green space and restaurant. The law firm Smith, Gambrell & Russell and Google are anchoring this project. Los Angeles real estate investor CIM Group, German investor Newport RE and a suburban Atlanta businessman with little experience in real estate development are also making their mark downtown with their ambitious plans for development. The 22-story project will include about 13,000 square feet of retail space and its office element. The largest office project underway in Atlanta is State Farm's Park Center Phase 2.This 1.2 million-square-foot project includes an office component as well as a boutique hotel, 64 luxury condominiums and 25,000 square feet of retail space at its base.
Despite initial concerns that the COVID-19 pandemic could stop development activity, this project continues to move forward. The SoNo neighborhood has experienced an influx of new investment interest in large and small projects as well as three major mixed-use complexes: Centennial Yards, South Downtown and Underground Atlanta. These projects are all located within a quarter of a mile radius in downtown Atlanta and incorporate the design framework and values of the city of Atlanta to help it become the best possible version of itself.
