This document discusses trends in the workforce and talent markets. It notes a declining workforce participation rate and skills shortage. Many jobs will require postsecondary education. Talented workers are clustering in urban areas near amenities. The document outlines characteristics of talented workers and their preferences for urban, walkable communities balancing work and life. Companies that locate near talent will benefit from productivity increases and retention. Placemaking and quality of life are priorities for both employees and employers. Atlanta is highlighted as a top market attracting talented workers and jobs.

1. JANUARY 2016

2. ◦ MARKET DYNAMICS
◦ Workforce
◦ Resources
◦ Expectations
◦ CORPORATE SUCCESS FACTORS
◦ Access to Talent
◦ Recruitment and Retention
◦ Corporate Culture
◦ Aligning Company goals and objectives
◦ OPTIONS, ACTIONS, SCHEDULE
◦ Governing Criteria
◦ Location Options
◦ Comparative Analysis
◦ Political Implications
◦ Schedule, Cost and Execution
STAYING RELEVANT IN THE INNOVATION ECONOMY

3. ◦ WORK FORCE SHORTFALL
◦ Workforce Participation rates are declining to historic lows.
◦ In 2014, the work force participation rate reached a 36 year low.
◦ The participation rate will not meet demand for the next two decades.
◦ RAPIDLY SHIFTING WORK FORCE DEMOGRAPHICS
◦ Boomers account for half of the participation rate drop
◦ Educated 25-34 year olds is the target market for talented workers
◦ Talented workers are clustering in urban enclaves in large metro areas.
◦ MASS MIGRATION TO URBAN CENTERS
◦ Migration – Domestic Relocation and New Foreign Immigrants
◦ Geographic Hot Spots– Large (3 million+) metropolitan areas.
◦ College Degree Concentrations.
PROFOUND CHANGES

4. WORK FORCE REALITY

5. By 2018, the demand for Talented workers will comprise 33% of all job openings.
By 2018, there will be 46.8 million U.S. job openings with only 30 million available workers.
By 2020:
◦ +70% of job applicants will lack the skills or talent necessary to fill open positions.
◦ The majority of new jobs will require educated workers with a bachelor degree or higher.
◦ 18% or more jobs will require an advanced degree.
◦ The shortfall is a mathematical certainty.
PACE OF CHANGE

6. ◦ INNOVATION & TALENT
◦ Success in the new economy is entirely dependent on an organizations ability to innovate.
◦ Innovation is directly tied to Talent.
◦ Talent is paid to use their cognitive skills.
◦ Talent solves complex problems involving independent judgement and technological understanding.
◦ Talent is highly educated and flocks to dense urban developments within metro areas.
◦ BETTER RECIPES, NOT JUST MORE COOKING
◦ Talent clusters accelerate Innovation.
◦ Urban centers offer businesses the best opportunity to compete for, recruit and retain talent.
◦ The talent workforce population grows at twice the rate in urban mixed use communities than the rest of metro areas
◦ Places that attract talent are more productive, grow faster and have better economic outcomes
◦ Talented workers are 2.3% more productive than their counterparts.
INNOVATION ECONOMY

7. • Atlanta experienced a 30% increase in population over the last 12 years
• Atlanta continues to enjoy an increasing population of Talented Workers 25-34
• Atlanta ranks in the top 10 metro areas with the largest % share of talented workers
• Atlanta ranked #1 in job growth percentage increase in 2015 of all major metros
• Atlanta has the highest forecasted job growth (8.8%) for 2016 of all major metros
HOW ATLANTA STACKS UP

8. ATLANTA JOB GROWTH

9. TALENT IS MOVING TO ATLANTA

10. ATLANTA OFFICE SUPPLY & DEMAND

11. ◦ GEOGRAPHY
◦ Geography is the dominant criteria for Talent choosing where to live.
◦ Location matters more than ever.
◦ Physical proximity to talented people fuels innovation and economic growth.
◦ Talent attracts more talent.
◦ PLACE
◦ Increasingly, talented people are moving to metro areas to realize their full economic value.
◦ A sense of PLACE attracts diverse talent accelerating the rate of economic success & evolution.
◦ As Talent clusters in urban communities and interact, profits accelerate.
ECONOMIC FUEL

12. BALANCED QUALITY OF LIFE & WORK
◦ Accessibility
◦ Close proximity to Walkable Live-Work-Play Communities
◦ Convenient access to Health Care, Wellness & Recreation
◦ Amenity rich environment
◦ Concentrated Activities
◦ Efficient & Attractive buildings
◦ To be “Alive after Five”
◦ Environmental Sustainability
◦ Pride of Place – Communities that elicit a sense of place and identity
TALENT EXPECTATIONS

13. ◦ High Educational Attainment
◦ High capacity for exercising individual judgement
◦ Technologically Savvy
◦ Complex problem solvers
◦ Ambitious and Hard working
◦ Median Age 34.8
◦ Expect to Live in dense urban LWP communities or have non-vehicular access
◦ Physically Active
◦ Highly Diverse
◦ High work force participation
◦ Socially engaged with co-workers
TALENT CHARACTERISTICS

14. Workplace environment means everything to talent productivity and retention. Forget the rent and focus on company
culture.
◦ Career Well-being
◦ Social Well-being
◦ Financial Well-being
◦ Physical Well-being
◦ Community Well-being
QUALITY OF LIFE PER SQUARE FOOT

15. ◦ Dense suburban LWP communities are experiencing double the growth rate of Talented workforce compared to all
other alternatives in the top 0 metro areas.
◦ Light rail access ranks in the top 5 criteria for talent evaluating where they will live-work-play
◦ 25-34 year olds in metro areas with a drivers license is steadily declining
◦ 90% or more of the Talented workers will choose dense urban walkable communities over auto isolated alternatives.
◦ 41% of new jobs will require a bachelors degree
◦ 23% of new jobs will require advanced degrees
TALENT MATH

16. ◦ Companies can anticipate +/- 3% increase in workforce productivity
◦ Companies can anticipate as much as a 50% increase in talent retention
◦ Companies can anticipate as much as a 36% increase in effective hours
◦ Companies can anticipate a 1-2% reduction in sick days
◦ Companies can anticipate an Earnings increase
LOCATING BUSINESSES IN TALENT COMMUNITIES

17. 73% of American business leaders consider quality of life for employees their top priority
89% of corporate leaders have or are initiating changes in their physical environment to attract and retain talent.
74% believe that workplace changes are required to facilitate Social interaction among workers
69% have implemented health and wellness initiatives
57% believe that failure to improve employee quality of life will result in a negative impact on organizational
performance and profits
QUALITY OF LIFE – THE CEO PERSPECTIVE

18. PLACES are communities of people, activities and architecture that when thoughtfully combined create
a sense of belonging.
PLACES are experiential, active, accessible, safe and comfortable.
PLACES are crucibles of LIVING: Eating, Socializing, Working, Resting, Learning, Growing.
PLACES are sustainable, dense, walkable, personal, vibrant and connected to the world.
PLACES are ecosystems where creativity coalesces art, innovation, technology and culture.
WHERE BUSINESS NEEDS TO BE

19. Balance
QUALITY OF
LIFE
INNOVATION TALENT ENGAGEMENT DENSITY
PRIDE OF
PLACE
Clusters,
Collisions &
Collaboration
Geography,
Migration &
Density
Amenities,
Entertainment
& Access
Proximity,
Connection &
Community
WHY PLACEMAKING MEANS SO MUCH

20. 89% rank the physical environment as the top determinant of Quality of Life
74% rank Social Interaction as the 2nd most important determinant
73% rank the quality of the workplace setting 3rd (Ease and efficiency of producing meaningful work)
69% place health and wellness as the 4th key factor
Personal Growth follows as the 5th most important determinant
Places + Spaces = Quality of life
QUALITY OF LIFE – THE TALENT PERSPECTIVE

21. Vacancy rates declined an average of 2.4% in 2015
Demand for office has remained stable averaging 600,000 square feet quarterly
Atlanta offers the best value for office in all major metro areas
Atlanta continues to be in a rising office market environment
Lowest volume of new construction in decades – less than 1% of class A inventory is under construction
ATLANTA OFFICE MARKET

22. Trade, Transportation & Utilities sector created 18,000 or 3.1% (U.S. average = 1.7%)
Hospitality created 13,100 jobs, Education & Health 9,200 jobs
Atlanta job growth exceeded the national average in every supersector tracked by BLS
Atlanta’s job growth was
Professional and Business services sector created 25,100 jobs or a 5.3% growth (U.S. average = 3.2%)
ATLANTA JOBS 11-14 to 11-15

23. KDC PROJECTS

24. SIZE
602,000 SF
SCHEDULE
36 Months
LOCATION
Dunwoody, GA
STATE FARM AT PARK CENTER

25. SIZE
186 Acres
DAYTIME POPULATION
30,000
OFFICE
5,000,000 SF
RETAIL & AMENITIES
306,000 SF

26. SIZE
2,100,000 SF
SCHEDULE
23 Months (PI)
24 Months (PII)
LOCATION
Richardson, TX
STATE FARM AT CITYLINE

27. SIZE
489,000 SF
SCHEDULE
15 Months
LOCATION
Richardson, TX
RAYTHEON

28. SIZE
240 Acres
DAYTIME POPULATION
25,000
OFFICE
6,000,000 SF
RETAIL
300,000 SF

29. SIZE
2,100,000 SF
COMPLETION
2017
LOCATION
Plano, TX
TOYOTA NORTH AMERICAN HEADQUARTERS

30. SIZE
1,100,000 SF
COMPLETION
2017
LOCATION
Plano, TX
LIBERTY MUTUAL INSURANCE

31. SIZE
265,000 SF
SCHEDULE
13 Months
LOCATION
Plano, TX
FEDEX OFFICE