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I really don’t think people in Atlanta/Georgia don’t understand what’s about to happen as BIG $ markets continue to do biz in Atlanta
This is based on the recent sale of Blackhall Studios to an LA Private equity firm for $120M... https://www.bizjournals.com/atlanta/news/2021/04/28/blackhall-studios-sells-commonwealth-group.html">https://www.bizjournals.com/atlanta/n...
this is after a year + of negotiations, Blackhall has been trying to get a land swap w/ DeKalb County on land to expand the studio. https://www.ajc.com/news/atlanta-news/a-park-a-film-studio-and-the-dekalb-community-thats-all-for-a-land-swap/2RD7P2BF4VCWVLDP7IUV62GRZM/">https://www.ajc.com/news/atla...
Atlanta/Georgia still governs with regards to economic development like its 1981 instead of 2021:
-land swaps to companies for no $
-tax breaks on real estate for companies that can afford it
-STILL expanding highways
-competitive relocations for companies btn suburbs/counties
-land swaps to companies for no $
-tax breaks on real estate for companies that can afford it
-STILL expanding highways
-competitive relocations for companies btn suburbs/counties
And as more established + capitalized players come in from the tier 1 markets of NYC/SF/LA/DC they are gonna take this state for everything b/c we offer it.
I wanna be clear, economic development in the US will eventually have big market $ enter and that’s a good thing.
I wanna be clear, economic development in the US will eventually have big market $ enter and that’s a good thing.
BUT Atlanta/Georgia really touts itself as the place for business when in reality we don’t actually cater to businesses as much as provide a low cost/low (or no tax)/low regulatory state
So that brings me back to my initial statement, “I really don’t think people in Atlanta/Georgia don’t understand what’s about to happen as BIG $ markets continue to do biz in Atlanta”
BIG$ doesn’t operate on same terms politically, socially, or on a real estate level like GA
BIG$ doesn’t operate on same terms politically, socially, or on a real estate level like GA
The 2010s have seen a slow but steady drip of $ from BIG $ markets.
And I think people are about to misread what’s happening.
People assume overnight hundreds of thousands of people will just show up in Atlanta and just raise prices...which is/isn’t exactly what’s happening
And I think people are about to misread what’s happening.
People assume overnight hundreds of thousands of people will just show up in Atlanta and just raise prices...which is/isn’t exactly what’s happening
Georgia was/is already projected to grow over the next few decades.
This is as result of cities have become anchors to economic mega regions.
ATL/BOS/DC/TEX 4 are also all core cities that are sucking up all of the $ from entire regions of the US. https://atlanta.curbed.com/2019/10/11/20909328/atlanta-population-million-regional-commission-projections">https://atlanta.curbed.com/2019/10/1...
This is as result of cities have become anchors to economic mega regions.
ATL/BOS/DC/TEX 4 are also all core cities that are sucking up all of the $ from entire regions of the US. https://atlanta.curbed.com/2019/10/11/20909328/atlanta-population-million-regional-commission-projections">https://atlanta.curbed.com/2019/10/1...
And when we look at a map the money is STILL coalescing in core cities, their surrounding edge cities + suburbs. This is going to keep both commercial and residential real estate competitive for the next few decades if projections hold.
Blue-chip companies who are preparing for a more transient future workforce knows the base will be likely located in these regions. So investment into the commercial real estate, class-A office, and data centers makes sense—see @Google: https://blog.google/inside-google/company-announcements/investing-america-2021/">https://blog.google/inside-go...
So what does this mean in layman’s terms:
-BIG money firms (often tech/media/real estate/private capital) move from the BIG $ costal markets they find themselves in second-fourth their regions.
-This will likely lead to more economic $ towards maintaining/appealing to them
-BIG money firms (often tech/media/real estate/private capital) move from the BIG $ costal markets they find themselves in second-fourth their regions.
-This will likely lead to more economic $ towards maintaining/appealing to them
Places like Georgia think that means living in the burbs w/ tax breaks for their biz.
They are misreading this.
The lifestyle, amenities, maturation of restaurants/retail, and sophisticated office/real estate markets they are coming from will bring these players from BIG $ mkts
They are misreading this.
The lifestyle, amenities, maturation of restaurants/retail, and sophisticated office/real estate markets they are coming from will bring these players from BIG $ mkts
Microsoft and Google came to build its regional hubs in Atlantic Station and midtown respectively.
These are in-town, walkable, semi-transit oriented developments near a top 100 US college for technology in Georgia Tech.
It’s recruitment tool that is at 1/10th of being in SF/NYC
These are in-town, walkable, semi-transit oriented developments near a top 100 US college for technology in Georgia Tech.
It’s recruitment tool that is at 1/10th of being in SF/NYC
Atlanta (the city) is dramatically underpriced AND under developed.
So as a large firm, you can find a large commercial real estate firm to build out exactly what you want in a city w/o restrictions of development that come from big mkts + low regulation
So as a large firm, you can find a large commercial real estate firm to build out exactly what you want in a city w/o restrictions of development that come from big mkts + low regulation
People complain of Fuqua’s bad developments but what happens when/if say mayor players out of NYC like Tishman Speyer or Brookfield comes in to town?
You can see an effect of even the largest developers in Georgia being priced out/locked out of the development
You can see an effect of even the largest developers in Georgia being priced out/locked out of the development
And often the politics + donations + social comments of these companies can be best described as ‘liberally conservative’. These companies are often ‘Rockefeller Republicans’ or Liberal Libertarians. They will donate (in secret) to R’s, but want the social policies of Libs
It’s the polices pushed by liberals and Democrats such as voting reform, LGBT rights, women’s rights, and are often not isolated in suburbia or non-connected regions of the US.
The Delta-Georgia GOP beef is the first of likely more battles going forward https://www.washingtonpost.com/opinions/2021/04/01/gop-war-on-voting-georgia-delta/">https://www.washingtonpost.com/opinions/...
The Delta-Georgia GOP beef is the first of likely more battles going forward https://www.washingtonpost.com/opinions/2021/04/01/gop-war-on-voting-georgia-delta/">https://www.washingtonpost.com/opinions/...
And that is what will be different for both parties. Republicans regressive laws and ideas are out of step w/ a workforce AND future generation that’s becoming more liberal-ish even among Millennial/Gen Z Republicans https://www.pewresearch.org/social-trends/2020/05/14/on-the-cusp-of-adulthood-and-facing-an-uncertain-future-what-we-know-about-gen-z-so-far-2/">https://www.pewresearch.org/social-tr...
And for Atlanta who’s government has been mostly in-line with the future of pro-business + socially/liberal at such a low price, investing makes perfect sense.
And as BIG tech is moving here they’re employees are staying on the coast. Atlanta will be taking from other regions
And as BIG tech is moving here they’re employees are staying on the coast. Atlanta will be taking from other regions
And the developments that have been in the works reflect this. We’ll start with The Gulch now known as Centennial Yards. An LA-based developer astroturfed a campaign to get a contested city council debate for $1.7B+ in tax financing to make this happen https://www.wabe.org/business-group-turns-to-robocalls-for-gulch-redevelopment/">https://www.wabe.org/business-...
The developer behind The Gulch/Centennial Yards, CIM is an LA-based company and didn’t have to do nowhere near as much media manipulation and political lobbying work as they would’ve done back in LA to even get this done. https://therealdeal.com/la/2019/04/23/developers-spent-millions-lobbying-la-city-officials-last-year-report/">https://therealdeal.com/la/2019/0...
Then we have Underground Atlanta, which was sold to a South Carolina power player in WRS Realty, who could move the site and now moved on by selling to a metro Atlanta company led by Shaneel Lalani. https://www.atlantamagazine.com/news-culture-articles/underground-atlanta-will-try-try-again/">https://www.atlantamagazine.com/news-cult...
If they can’t work this out, my best bet an NYC/BOS/DC based developer who as real experience in making urban spaces work will take it over.
Developers in metro ATL often keep trying to recreate Atlantic Station (see Avalon, Revel in Gwinnett) instead of urbanized development
Developers in metro ATL often keep trying to recreate Atlantic Station (see Avalon, Revel in Gwinnett) instead of urbanized development
Avalon/Atlantic Station are this ‘drive-to-urbanism’ model as my colleague @atlurbanist often writes about for @ThreadATL.
This requires TONS of parking, cheap land, and little regulation.
All basis of suburban economic policy of the last 50 years. https://www.bisnow.com/atlanta/news/neighborhood/the-avalon-affect-mixed-use-prevails-in-atlantas-northern-suburbs-96906">https://www.bisnow.com/atlanta/n...
This requires TONS of parking, cheap land, and little regulation.
All basis of suburban economic policy of the last 50 years. https://www.bisnow.com/atlanta/news/neighborhood/the-avalon-affect-mixed-use-prevails-in-atlantas-northern-suburbs-96906">https://www.bisnow.com/atlanta/n...
So when I see CIM at The Gulch or now the German-based Newport who owns 20 buildings in downtown Atlanta behind Five Points MARTA station, I see the future...Atlanta’s biggest players could eventually be on the outside looking in https://atlanta.curbed.com/2018/11/9/18077920/south-downtown-atlanta-newport-cim-group-gulch">https://atlanta.curbed.com/2018/11/9...
And even our beloved Ponce City Market, in the former Sears building that was also once City Hall East tried to get off the ground by Atlanta developer Emory Morseberger first https://www.bizjournals.com/atlanta/stories/2004/12/06/newscolumn1.html">https://www.bizjournals.com/atlanta/s...
Then things didn’t workout and Jamestown, the more well capitalized NYC-based developers behind the revitalization of Chelsea Market in Manhattan took over after Morseberger https://architizer.com/blog/inspiration/stories/tour-atlantas-new-mega-food-hall/amp/">https://architizer.com/blog/insp...
That food hall + office redevelopment becomes a national model and we see it similarly pop-up across metro Atlanta in Krog Street Market and Cobb’s Marietta Street Market https://atlanta.eater.com/2019/2/28/18245015/marietta-square-market-food-hall-opening-march-atlanta">https://atlanta.eater.com/2019/2/28...
Jamestown sold Chelsea Market for $2.5B in 2018 https://nypost.com/2018/02/06/the-history-behind-googles-massive-chelsea-market-purchase/">https://nypost.com/2018/02/0...
Jamestown takes over the Sears/City Hall building, rebrands/develops as Ponce City Market and the rest is history. https://www.bizjournals.com/atlanta/news/2011/07/11/jamestown-buys-city-hall-east-for-27m.html">https://www.bizjournals.com/atlanta/n...
Jamestown even looked at developing Underground Atlanta but under former mayor Kasim Reed they went with WRS and to this day, I have no idea why https://atlanta.curbed.com/2016/12/9/13900200/ponce-city-market-developers-underground-atlanta">https://atlanta.curbed.com/2016/12/9...
And as more BIG $ firms enter Atlanta overtime their needs will translate into political donations and business desires.
Desires of the Jim Crow-era of governance the current Georgia GOP is battling internally.
They know they can’t afford to lose https://www.usatoday.com/in-depth/news/2021/04/17/georgia-republicans-look-to-mend-from-trump-attacks-democratic-wins/7191106002/">https://www.usatoday.com/in-depth/...
Desires of the Jim Crow-era of governance the current Georgia GOP is battling internally.
They know they can’t afford to lose https://www.usatoday.com/in-depth/news/2021/04/17/georgia-republicans-look-to-mend-from-trump-attacks-democratic-wins/7191106002/">https://www.usatoday.com/in-depth/...
And I wanna address what @AceHarrisMusic asked me:
https://twitter.com/aceharrismusic/status/1387760198106767360?s=21
Atlanta/metro">https://twitter.com/aceharris... Atlanta having economic growth is a great thing. But often our modus operandi is shortsighted or we (the government/people) get the short end of the stick.
https://twitter.com/aceharrismusic/status/1387760198106767360?s=21
Atlanta/metro">https://twitter.com/aceharris... Atlanta having economic growth is a great thing. But often our modus operandi is shortsighted or we (the government/people) get the short end of the stick.
A land swap for no money in Southwest DeKalb County for Blackhall Studios to sell two months later for $120m is getting hoodwinked.
The (majority Black) people of East Atlanta, Ellenwood, Gresham Park, and incorporated Decatur lost out.
The (majority Black) people of East Atlanta, Ellenwood, Gresham Park, and incorporated Decatur lost out.
And this isn’t even including the role of the film/tv industry in Atlanta, which I’m address at some point later.
Nor does it factor in anything in IT, Health, Logistics, or Finetech, all industries which have a direct financial impact in Atlanta.
Nor does it factor in anything in IT, Health, Logistics, or Finetech, all industries which have a direct financial impact in Atlanta.
But as more places come here to Atlanta it will effect our politics, our real estate, and overall economic growth. Development is good but it needs real help to ensure affordability, sustainability, and better design.
I wanna go over this more but I’m working on major home renovations (taking down a deck) and need to go outside.
How it started: How it’s going:
