Atlanta Galleria Now

Cobb Energy Centre Hosts Luncheon with Former CNBC Chief Economist

As the economy continues to get untracked in 2012, the metro Atlanta region finds itself at something of a crossroads, former CNBC chief economist Marci Rossell told those attending the Commercial Real Estate Women of Atlanta’s January luncheon, held Thursday at the Cobb Energy Performing Arts Centre.

The region has been shielded from the impact of past recessions because of robust population growth, Rossell noted. However, the metro area’s population has increased by just 1 percent over the past three years, meaning the region has struggled to shake off the effects of the downturn that began four years ago.

Atlanta officials now face a sobering question, according to Rossell: “Do we become Charlotte or do we become Detroit?” The former, she explained, responded to the decline of its textile-manufacturing sector in the early 1990s by making itself an appealing location for the finance sector, while the latter has continued to pin its hopes on the automobile industry.

The recent streamlining of its building permit process, which officials hope will make the city a desired destination for business expansions and relocations, indicates Atlanta is willing to make the changes needed to grow its economy, she said. 

Rossell’s analysis of Atlanta was just one component of an hour-long talk that also touched on the broader U.S. economy and the commercial real estate sector. 2012 will be marked by continued improvement in unemployment numbers, Rossell predicted. “This time next year – you can hold me to this – we’ll be at 7.5 percent unemployment,” she said.

She also downplayed the risks posed by the economic troubles of Europe, saying the U.S financial sector has prepared for the potential breakup of the euro zone. What would create a real setback is an unexpected event, such as last year’s earthquake in Japan or the debt-ceiling crisis, she argued. “What bumps you away from the [recovery] cycle? The unexpected things,” Rossell said. “Is there anybody here that hasn’t heard that Greece is in trouble?”

The commercial real estate sector has experienced improved transaction volume and financing conditions during the past two years, but pricing has yet to climb; however, pricing is always “the last phase of a [recovery] cycle,” she said.

Meanwhile, residential home prices may not rebound to their pre-recession, 2006 levels until 2016, Rossell indicated. “It takes 10 years for [residential] real estate to reach its previous peak,” she said.

Founded in 1982, CREW Atlanta’s mission is to elevate women to positions of power and influence in commercial real estate by providing resources and business opportunities. CREW Atlanta is a member of a national CREW Network. Lucky for us, our neighbor Cobb Energy Centre hosts a number of CREW’s events, including its upcoming 30^th Anniversary Gala on April 26.

To learn more about CREW Atlanta, check out its website.

More information about events at Cobb Energy Performing Arts Centre can be found at www.cobbenergycentre.com.

Patch: A New Opportunity to Get Local News and Share Your Company’s Story

The media landscape is changing fast, and there’s a great new source for hyper-local news called Patch.com, a network of news sites for small geographic areas. There already are four Patch sites in Cobb County (East Cobb, Northeast Cobb, Kennesaw, Smyrna-Vinings), and a fifth one (about South Cobb) is coming soon.

The Smyrna-Vinings Patch coverage area includes Atlanta Galleria and offers an opportunity for tenants at Atlanta Galleria to learn about what is happening in our local area and also to submit news about their companies.

Patch, an AOL-owned media play with hundreds of community sites across the country, demonstrates a trend across journalism: more narrowly focused media. In some cases, as with Patch, the narrow focus is geographic. Think about it: While the AJC is focused on all of metro Atlanta and even includes statewide news, the Smyrna-Vinings Patch covers a fraction of just one county. In other cases, outlets are popping up to focus narrrowly on a partcular industry. For instance, there are several email blasts, including Bisnow and Real Estate Rooster, focused just on news about Atlanta’s commercial real estate market (Thanks again Bisnow for the recent story about Atlanta Galleria).

So what does this say about journalism long-term? Hard to say, but for now we enjoy both our old-school big-picture media (Did we mention the AJC recently did a story about the Galleria? And we were also mentioned in the Atlanta Business Chronicle not too long ago?), as well as new, cool hyper-targeted sites like Patch!

Congratulations Patch team on all the launches in Cobb and beyond!

Engel Talks LEED, Green Galleria in AJC

In an Atlanta Journal-Constitution story this week about the pros and cons of obtaining LEED status for existing buildings, Childress Klein’s Connie Engel explained why she has opted against going after the designation for Atlanta Galleria.

“We don’t want to pay the cost,” Engel told AJC reporter Rachel Tobin, “or pass it on to tenants during this economic climate.”

But, she added, that doesn't mean Childress Klein doesn’t believe in conservation.

 “We’ve been doing it for years: recycling, water conservation, all kinds of things generally considered green,” Engel said in the story.

The newspaper went on to say the Engel’s views are becoming increasingly widespread. The price tag of applying for LEED, which stands for Leadership in Energy and Environmental Design, is up to $27,500 per building, according to the article.

 “That doesn’t seem right to us,” Engel said. “We have to put any extra dollars that we have toward keeping or getting tenants.”

Whether Atlanta Galleria ever applies for a LEED designation or not, Childress Klein has made plenty of improvements to the buildings here that make them both greener and more efficient. That’s good for all of us!

To learn more about Atlanta Galleria’s green efforts, click here.