Centennial Yards is courting 'enormous demand' from retailers

The firm redeveloping The Gulch says it's seeing interest from an astounding number of retailers — enough to nearly fill the city's landmark shopping mall Lenox Square two times over.

“Right now, we have over 3 million square feet of interest from retailers across the country that we are actively talking to,” said Brian McGowan, president of Centennial Yards Co. “The demand has been enormous.”

Centennial Yards is the $5 billion project that's transforming 50 acres in Downtown, helping to "heal the hole in the city of Atlanta," as Atlanta Hawks CEO Steve Koonin recently said.

It will include about 750,000 square feet of retail, McGowan said. The project aims to bring tenants that serve neighborhood needs, such as a grocery store. It also wants to create a sporting and entertainment district lined by Mercedes-Benz Stadium and State Farm Arena that includes music venues, restaurants and shops.

The leasing momentum comes as excitement builds for the revitalization of the area. Amid a struggling office market, developers see new housing as the way to bring more people to the city's core. Centennial Yards' initial phases are residential, with almost 600 new apartment units starting construction this year. It already turned an old Norfolk Southern railroad building along the edge of The Gulch into apartments. Two blocks away, Newport RE LP, a German real estate firm, has two apartment towers planned along Broad Street.

New retailers are signing on. Newport has landed several restaurants. Underground Atlanta plans a 21-stall food hall and will be the new home of nightclub MJQ Concourse. A Signia by Hilton hotel rising at the Georgia World Congress Center will have five restaurants.

Centennial Yards has already landed brewery Wild Leap Brew Co. and Jinya Ramen Bar. It has signed letters of intent, but can't yet disclose the tenants, McGowan said. Additional retail space will be built as part of four new projects starting this year, including a hotel and three apartment buildings. The core of the entertainment district could be mostly under construction by 2026, when Atlanta will be a host city for the FIFA World Cup, he said.

McGowan sees the opportunity to showcase the history and culture of Atlanta at Centennial Yards. Today, visitors who come Downtown for big events have to drive around to fully experience the city, he said.

“This will be the place where you come to experience Atlanta culture,” he said. "After spending a couple hours here, you should walk away feeling like 'I’ve been to Atlanta.'”

McGowan believes a musical experience should anchor the project. The team is having conversations with Atlanta musicians, including Dallas Austin, a Grammy Award-winning record producer and songwriter. Austin wants to honor the rich music history of the city and state like other cities such as Nashville have.

“You should be walking around and hear different kinds of live music, from hip hop to country,” McGowan said. “That music should be spilling out onto the street. It should be a festival type of an atmosphere.”