Georgia-Pacific ends plan for Atlanta mixed-use overhaul of downtown HQ

Georgia-Pacific is abandoning its plan for a mixed-use redevelopment of its downtown Atlanta skyscraper, citing market headwinds and high construction costs.

Georgia-Pacific Center at 133 Peachtree St., with its stair-stepped facade, is one of downtown’s most recognizable buildings.

The pulp and paper company announced plans in 2024 to convert underused office space in the 51-story tower into apartments, and transform lower floors into shops, restaurants and entertainment space.

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Credit: arvin.temkar@ajc.com

Credit: arvin.temkar@ajc.com

The company had planned about 400 apartments, including more than 130 at below market-rate rents. Its plans were to leave less than half the tower’s floor space as offices, anchored by Georgia-Pacific and its owner, Koch Inc.

The redevelopment plan became one of the most ambitious office tower conversions proposed in the city.

Georgia-Pacific’s efforts to revamp the building’s purpose came amid a struggling market for office real estate.

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The Atlanta area ended the first half of the year with about 30% of its office square footage either vacant or available to sublease, according to data from real estate services firm CBRE. There are some hopes for a rebound.

But the past couple of years have brought efforts to convert some outdated office space in the heart of Atlanta into apartments or hotels, including downtown’s 41-story 2 Peachtree St. office tower and CNN Center.

The Georgia-Pacific redevelopment plans also included the tower’s surrounding 6-acre block. The company, which owns the land, had planned to make it a public gathering plaza with MARTA and Atlanta Streetcar access, along with a parking deck. That plan has also been scrapped.

Credit: Courtesy of Georgia-Pacific

Earlier this year, Georgia-Pacific project lead Suzanne Maynard said the company would begin pursuing debt and equity partners over the summer, along with public incentives from the city. The company did not reveal a budget, but had tentatively planned a groundbreaking for late 2026.

On Friday, however, Georgia-Pacific issued a statement on its change of plans.

“Georgia-Pacific has made the decision to discontinue the redevelopment,” Maynard said in the written statement. “We have invested significant time, capital, and resources to bring this project to life, but higher construction costs and broader market headwinds changed the economic viability of the project at this scale.”

The company had assembled an in-house development team to lead the project, including real estate services firm Transwestern; architectural and interior design firm Rule Joy Trammell + Rubio; retail broker Healey Weatherholtz; civil engineering firm Kimley-Horn; interior design firm Studio Saint; and preconstruction contractor Brasfield & Gorrie.

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Maynard said the company is now focusing its resources on “critical infrastructure improvements, modernized building systems, and upgraded amenities — including dining options, outdoor workspace and upgrades to our workplace technology — informed by input from across our team.”

“We will continue to focus on making sure employees are in an environment that helps us create value,” she said.

There were hopes that the Georgia-Pacific redevelopment could help drive revitalization in downtown Atlanta.

In a 2024 statement, when Georgia-Pacific first announced the project, Atlanta Mayor Andre Dickens called the “transformative redevelopment” a “significant step in moving Atlanta forward, turning an important block in the heart of the city into a vibrant and welcoming destination that breathes new life into downtown.”

And Metro Atlanta Chamber CEO Katie Kirkpatrick said Georgia-Pacific would join other landmark projects downtown and would be “a catalyst for economic growth.”

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Not all office conversion efforts have been successful, facing pressures from high interest rates and a challenging market.

Supply chain pressures, tariffs and trade tensions, among other factors, have increasingly pushed construction costs upward over the last several years.

The cost to build any nonresidential structure in the U.S. is up by about 45% from January 2020, according to a recent report from real estate services firm Cushman & Wakefield. The costs of contractors is up by 43.5%. Materials costs are likely to continue climbing through 2026 as new steel tariffs work through supply chains, according to the report.

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