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Piedmont (PDM) Adds Deluxe to Atlanta Class A Office Complex

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Piedmont Office Realty Trust (PDM - Free Report) recently announced the addition of Deluxe Corporation (DLX - Free Report) to its tenant roster for the Class-A office complex in Glenridge Highlands Two in Sandy Springs. Deluxe will occupy an area spanning about 172,000 square feet in this Atlanta complex. However, shares of the company depreciated 1.6% during Friday’s trading session due to the broader market concerns.

The complex will house the tenant’s financial technology innovation and customer experience centers. The company plans to invest in excess of $12 million to develop and equip the space, and is likely to add about 700 jobs in Atlanta with further plans to expand the tech hub in the future.

Brent Smith, CEO of Piedmont, said “The Central Perimeter continues to serve as a powerful corporate hub in the Southeast and Deluxe’s selection of Glenridge Highlands Two is a major win for us, further highlighting Atlanta’s robust growth story and the caliber of Piedmont’s portfolio.”

The FinTech and payment industry is witnessing exponential growth, and Atlanta has emerged as a leader in this domain. Therefore, Deluxe’s plan of expansion in the FinTech and payments space bodes well for Piedmont’s cash flows from the property.

Piedmont is well poised to capitalize on the favorable trends on its solid presence in the Atlanta market.  The company’s Glenridge Highlands Two is a 20-story Class-A building and is part of a 12-acre office campus. The building spans an area of about 424,000 square feet, with 25,000-square-foot flexible floor plates, and enjoys direct access to GA-400 and I-285. This complex of Piedmont also includes Glenridge Highlands One. The 11-story building’s tenant amenities and other renovations are nearing completion. Moreover, a new building, Glenridge Highlands Three, which will span an area of about 250,000 square feet, is also in the planning phase.

Over the past year, shares of Piedmont Office have depreciated 26.8% compared with the 5.1% decline of the industry it belongs to.

Currently, Piedmont Office carries a Zacks Rank #4 (Sell).

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Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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