Translating Per Person Atlanta Tech Village Costs to Standard Commercial Real Estate Rates

One of the common questions I get from people in the commercial real estate field is “How do the Atlanta Tech Village per person per suite fees compare to traditional commercial real estate rates?” The short answer is that it’s complicated as it isn’t an apples to apples comparison. Here’s the long answer as to how a 10 person modular suite @ $3,250/month compares to traditional real estate:

  • 1,010 rentable square feet @ $20/ft is $2,025/month
  • $35 per person per month for furniture is $350/month
  • $50 per person per month for food and drink is $500/month
  • $25 per person per month for a managed firewall and fiber internet is $250/month
  • 5 parking spots @ $90 per month is $450/month
  • Total: $3,575/month

So, by commercial real estate standards, the number brokers are looking for is the $20 per rentable square foot amount. It still isn’t quite the same because a six month agreement for a space with nice finishes isn’t available in the regular world, let alone one that’s so small and furnished. Of course, the real value-add is in the community and camaraderie that comes with being in one of the largest tech entrepreneur centers in the country.

What else? What are some other thoughts about translating the per person Atlanta Tech Village costs to standard commercial real estate rates?

One thought on “Translating Per Person Atlanta Tech Village Costs to Standard Commercial Real Estate Rates

  1. The biggest reason I see so much value in the ATV for startups and small tenants is that they get flexible lease terms and almost no up front costs. Cash flow is very important for early companies and a huge problem with traditional real estate options are that they give you the choice of EITHER a short flexible lease term OR they pay for the buildout, give you free rent, etc.

    The ATV truly is the only option in Buckhead that offers flexible lease terms, no up front huge cots, and a high quality build out that is move in ready.

    The per SF costs are likely close to the $27/RSF number you mentioned, which is significantly higher than your building previously leased for or the building next door currently leases for, however, you pay a premium for the flexibility and access to the great community you already mentioned. Once you hit about 15-20 employees, it starts to make financial sense to lease direct.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.