Flexport Set to Sublease Office Space at Bank of America Plaza in Atlanta
In the latest development to reflect the changing dynamics of the corporate work environment, San Francisco-based digital freight and shipping giant Flexport is reportedly looking to sublease its Bank of America Plaza offices in Atlanta. According to sources familiar with the situation, Flexport is seeking a subtenant for up to 75,000 square feet of its office space at the towering building.
Rapid Expansion and Cost-Cutting Measures
Having initially leased 50,000 square feet at the Bank of America Plaza back in 2018, Flexport later expanded by another 25,000 square feet in 2021. The company viewed its premises at 600 Peachtree St. NE as an ideal location for attracting tech talent – a perspective reported by the Atlanta Business Chronicle. However, recent events have caused a shift in the company’s focus.
In an unexpected move last year, Flexport’s founder Ryan Petersen took over the role of CEO, replacing former Amazon executive Dave Clark. During his takeover, Petersen made clear his intentions to reduce the company’s office space worldwide in an effort to cut costs. In a statement last year on the X social media platform, Petersen noted that Flexport had rented space suitable for a team twice its size, signaling an excess of office space for the company’s needs. In addition to this downsizing, nearly 950 employees were let go last year as part of Flexport’s drive to return to profitability.
Despite declining to give specific details, a Flexport spokesperson maintained that the company remains committed to maintaining its presence in Atlanta and continuing to serve their customers in the area.
Subleasing Trend in Metro Atlanta Offices
Flexport joins a growing list of companies in metro Atlanta looking to sublease their office spaces, contributing to a record inventory of leased but currently unused office space. Recent data reveals an additional 150,000 square feet of new sublease space entered the Atlanta office market in the past week alone, bringing the total available space to nearly 9 million square feet.
Steve Triolet, Senior Vice President of Research at Partners Real Estate, provided an understanding of the current market in an email to Bisnow. Triolet observed that while other markets such as Houston and Dallas have seen a significant decrease in sublease space in recent quarters, Atlanta continues to see increased amounts. Other companies seeking to sublease their spaces include electronics manufacturer ScioTeq, which intends to sublease 23,000 square feet in Duluth, and the Georgia Tech Research Institute, which is looking to sublease 21,000 square feet at Coda at Tech Square.
The CP Group, which purchased the Bank of America Plaza in 2022, declined to comment on Flexport’s decision to sublease its office space.
