The Good, The Bad and The Downright Ugly: A review of Fayette County's current economic climate and the state of the retail, office and industrial markets. Matt Forshee President/CEO Fayette County Development Authority

Overview The Good Population, Jobs & Employment and a little bit of a Challenge. The Bad Announced Job Losses The Downright Ugly One Industry Sector’s nearly complete collapse. State of the Retail, Office and Industrial markets

The Good

Population, Jobs & Employment and a little bit of a Challenge.

The Bad

Announced Job Losses

The Downright Ugly

One Industry Sector’s nearly complete collapse.

State of the Retail, Office and Industrial markets

The Good Over the last three years, FCDA has announced the creation of 1400 new positions in Fayette county. Sany America – 600 Jobs over 10 years NCR – 600 jobs over 3 years Other New Companies - FieldTurf, Dixie Aerospace. Expansions by Existing Companies – Hella, Aventure Aviation, Rinnai,

Over the last three years, FCDA has announced the creation of 1400 new positions in Fayette county.

Sany America – 600 Jobs over 10 years

NCR – 600 jobs over 3 years

Other New Companies - FieldTurf, Dixie Aerospace.

Expansions by Existing Companies – Hella, Aventure Aviation, Rinnai,

The Good

The Good: Population Detail

The Good: Population Detail

The Good Employed Fayette County Residents at the highest number ever, hitting 54,000 employed in July 2008

Employed Fayette County Residents at the highest number ever, hitting 54,000 employed in July 2008

The Good In 2008, the predominant household income category in Fayette County is $100K - $150K, and the income group that is least represented is $0 - $15K. The average HHI is $90,608 and the median HHI is $89,115.

In 2008, the predominant household income category in Fayette County is $100K - $150K, and the income group that is least represented is $0 - $15K. The average HHI is $90,608 and the median HHI is $89,115.

The Bad Long standing companies announce plans for layoffs Panasonic plans to layoff 500 people in 2009 Corporate parents of other local companies announce plans for system-wide layoffs. Local effects unknown. Cooper Industries, Gardner Denver

Long standing companies announce plans for layoffs

Panasonic plans to layoff 500 people in 2009

Corporate parents of other local companies announce plans for system-wide layoffs. Local effects unknown. Cooper Industries, Gardner Denver

The Downright Ugly Unemployed Fayette County Residents at the highest number ever, hitting 3,200 in November 2008.

Unemployed Fayette County Residents at the highest number ever, hitting 3,200 in November 2008.

The Downright Ugly

The Downright Ugly From a high of 1,710 units in 1987 to a low of 143 units in 2008 (as of October). In 2007, there were 353 units built.

From a high of 1,710 units in 1987 to a low of 143 units in 2008 (as of October). In 2007, there were 353 units built.

The Downright Ugly From 2005 to 2008, the total value of SFH permitted in Fayette County went from $214mm to $42mm, a loss of over 80% of value.

From 2005 to 2008, the total value of SFH permitted in Fayette County went from $214mm to $42mm, a loss of over 80% of value.

The Downright Ugly On the bright side, we are now home to the most expensive new average single family home price in Georgia.

On the bright side, we are now home to the most expensive new average single family home price in Georgia.

Commercial - Retail ARC’s March 2008 Regional Snapshot YR 2000 Metro – 48.4 sf/person Fayette – 64.4 sf/person 2 nd after Coweta 6 th in vacancy rate (4.6%) YR 2007 USA – 20 sf/person Metro – 49.2 sf/person Fayette - 65.4 sf/person 2 nd after Coweta 19 th in vacancy rate (5.5%) The report appears to show that, though we have more retail space per person than nearly every other county in metro Atlanta, our spaces are staying occupied at a higher rate than nearly every other county’s. Does this partially explain why commercial developers continue to show interest in developing retail centers in Fayette?

ARC’s March 2008 Regional Snapshot

YR 2000

Metro – 48.4 sf/person

Fayette – 64.4 sf/person

2 nd after Coweta

6 th in vacancy rate (4.6%)

YR 2007

USA – 20 sf/person

Metro – 49.2 sf/person

Fayette - 65.4 sf/person

2 nd after Coweta

19 th in vacancy rate (5.5%)

The report appears to show that, though we have more retail space per person than nearly every other county in metro Atlanta, our spaces are staying occupied at a higher rate than nearly every other county’s. Does this partially explain why commercial developers continue to show interest in developing retail centers in Fayette?

Commercial - Office ARC’s March 2008 Regional Snapshot 2000 – 2007,+823,523 sf (38.3%) Total of 2,975,284 sf (284 blds) 7 th largest office market in 20 county metro region (Fulton, DeKalb, Cobb, Gwinnett, Forsyth & Clayton) Average space/building – 10,476 sf 9 th largest average building size Metro Average – 27,499 sf Average vacant space/bld – 1,666 sf 10 th largest average vacant space Metro Average – 3,864 sf Comparisons 2000 – 2007, Forsyth grew by 153% Henry has below Fayette in total bld sf at 2.4 MSF, but grew 1,320% between 2000 and 2007.

ARC’s March 2008 Regional Snapshot

2000 – 2007,+823,523 sf (38.3%)

Total of 2,975,284 sf (284 blds)

7 th largest office market in 20 county metro region (Fulton, DeKalb, Cobb, Gwinnett, Forsyth & Clayton)

Average space/building – 10,476 sf

9 th largest average building size

Metro Average – 27,499 sf

Average vacant space/bld – 1,666 sf

10 th largest average vacant space

Metro Average – 3,864 sf

Comparisons

2000 – 2007, Forsyth grew by 153%

Henry has below Fayette in total bld sf at 2.4 MSF, but grew 1,320% between 2000 and 2007.

Industrial Buildings No major new stand alone Industrial Construction, mostly small lease spaces Tiernan & Patrylo’s retrofit of 300,000 sf TDK facility into 10 unit facility. Within 6 months, T&P had all but one 40,000 sf space leased out.

No major new stand alone Industrial Construction, mostly small lease spaces

Tiernan & Patrylo’s retrofit of 300,000 sf TDK facility into 10 unit facility.

Within 6 months, T&P had all but one 40,000 sf space leased out.

Thank You Matt Forshee President/CEO Fayette County Development Authority Copies of this presentation available at www.fayettega.org