#22 - Colin Connolly - Why Atlanta May Not Get a New Office Tower Until After 2030

Colin Connolly has spent 15 years at Cousins Properties — 8 of them as CEO — steering one of the premier office REITs in the country through a merger, a pandemic, and what may be the most consequential reset in office real estate history. As the Sunbelt office market tightens and new supply seems frozen until at least 2030, Cousins is gearing up for offense. Inside the episode: • Leading Cousins through Covid — and why the first call was guaranteeing no layoffs before making any strategic decisions • Doubling down in the pandemic: selling $1.3B of lower-quality assets and reinvesting in trophy product at the bottom of the market • The Houston bet that went wrong — watching OPEC's Thanksgiving Day announcement blow up 40% of the company • Merging with Parkway Properties and spinning out the Houston portfolio into its own publicly traded company • Why there will be no new office supply of any size delivered in Atlanta until after 2030 — and what that means for rents • Dallas as the canary in the coal mine: net rents climbing from $50 to nearly $90 • Why companies relocating to the Sunbelt care far less about office rent than the cost of housing for their employees • Where Cousins sees opportunity today — and why the absence of competing capital has made trophy acquisitions unusually attractive Big thanks to our sponsors for supporting this series: • Songy Highroads – songyhighroads.com • Corporate Environments – corporateenvironments.com • USA Cabling – usacablingtech.com • Scott Contracting – scott-contracting.com • The Beck Group – beckgroup.com If you have a commercial real estate need, please reach out. My team and I have incredible resources through Cushman & Wakefield to help with any need you have. Chapters: 00:00 - Intro and Guest Birthday Wishes 00:22 - Colin's Background and Family 03:05 - Office Recovery Outlook Discussion 04:22 - CEO Start and Tier REIT Merger 05:47 - COVID Impact and Company Principles 09:32 - Strategic Decision: Sell Low‑Quality Assets 12:50 - Shift to Trophy‑Grade Portfolio 13:36 - Sponsor Thanks: Songy High Roads 14:18 - Leasing Trends and Market Tightening 16:21 - Buckhead Market Rebalancing Analysis 18:01 - Pricing and Rent Levels in Buckhead 19:08 - Buckhead Plaza Renovation Success 25:31 - Cousins Investment Criteria Overview 27:17 - Sponsor Thanks: Beck Group 27:44 - Big Bets, Scorecard, Stock Performance 29:14 - Macro Uncertainties and Customer Focus 34:18 - Future Outlook: AI and Lease Renewals 38:34 - Sponsor Thanks: Corporate Environments 39:05 - Switching Gears: Houston Case Study 42:30 - Sunbelt Expansion and Houston Bet Fallout 45:22 - Thanksgiving Reflection on Houston Bet 47:30 - Parkway Merger and Houston Spin‑Off 49:28 - Investor Options After Houston Spin‑Off 52:31 - Sponsor Thanks: USA Cabling 53:00 - Assessing Post‑Pandemic Market Opportunities 54:05 - Capital Market Headwinds and Challenges 58:13 - Competitive Landscape Across Sectors 1:04:43 - South Florida Market Watch and Risks 1:06:20 - Investor Queries on Relocation and Costs 1:07:55 - Closing Remarks and Podcast Future More info: https://linktr.ee/timwright.cre