RaceTrac Petroleum Inc. just inked a long-term lease at Cobb County’s 200 Galleria tower, turning down overtures from multiple developers that wanted to build the company a new headquarters.
RaceTrac will initially lease the 6th, 7th, 8th, 10th and 12th floors, but could expand to occupy up to 144,000 square feet within the 20-story building.
RaceTrac was courted by developers, but the company could not justify spending up to $38 a foot to rent a newly built tower when existing space was more affordable, said Brian Thornton, RaceTrac’s vice president of real estate and engineering.
Rents at 200 Galleria average between $24 a foot and $27 a foot. The gross value of the RaceTrac lease could approach $48 million, excluding concessions, escalation and plans for expansion.
The company considered multiple existing buildings across metro Atlanta, but wanted to stay in Cobb because most of its employees are based along and north of the Perimeter.
For now, the company remains housed at 3225 Cumberland Boulevard, or Cumberland Center IV, where it leases about four floors, and its ongoing expansion means it’s running out of room. RaceTrac continues adding new stores across its markets, and the growth requires more support personnel, Thornton said.