Cousins Properties (CUZ) Signs Lease With Visa in Midtown Atlanta
Cousins Properties CUZ has signed a lease with Visa for approximately 123,000 square feet at 1200 Peachtree in Midtown Atlanta, as part of the digital payments leader’s efforts to establish a permanent office presence in the Atlanta market.
This is a long-term lease and initial occupancy is expected during fourth-quarter 2022. By setting up the office, this behemoth in the financial technology space is expected to create roughly 1,000 new jobs in the region over the next several years. The move comes as Atlanta continues to lure large and growing companies hiring new talent.
Cousins Properties has an unmatched portfolio of class A office assets concentrated in the high-growth Sun Belt markets. This region is experiencing a population influx. Amid the favorable migration trends and a pro-business environment, corporate relocations and expansions in the Sun Belt markets have been prominent, which is driving the demand for office space.
Assets in these markets are also anticipated to command higher rents compared with the broader market. Hence, Cousins Properties’ leading trophy portfolio of class A and highly-amenitized office realties across the Sun Belt region is well positioned to benefit from the emerging trend.
Acquired in 2019 from Norfolk Southern Corporation NSC as part of a larger transaction involving development of Norfolk Southern's new headquarters, 1200 Peachtree has a central location, proximity to well-known research institutions and enjoys superior accessibility, which is likely to lure companies interested in the Midtown submarket.
Cousins Properties plans to reposition the property for multi-customer use, following the moving-out of Norfolk Southern from 1200 Peachtree into its new building by the end of this year. It will comprise the full renovation of the ground floor setting up both indoor and outdoor amenities, and capitalize on the building's prime location within the submarket.
However, the office real estate market has been significantly affected by the coronavirus pandemic and the flexible working environment, and its recovery is likely to be prolonged.
Shares of this Zacks Rank #3 (Hold) company have gained 7.9% over the past six months compared with the industry’s rally of 9.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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