Focus: Atlanta 2020

Atlanta 2020 An in-depth review of the key issues facing Atlanta’s economy, featuring the exclusive insights of prominent industry leaders

$159.00 ISBN 978-0-9988966-1-8

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9 780998 896618

Contents: 43 Clayton County:

44 Connected: Rebranded Clayton County is making a big push to raise its profile

45 Interview: Jeffrey Turner, Chairman, Clayton County Board of Commissioners

47 Interview: Bobby Cartwright, Mayor, City of Lovejoy

48 Interview: Joy Day, Mayor, City of Jonesboro

52 Market voices: COVID-19 Bianca Motley Broom, Mayor, City of College Park Angelyne Butler, Mayor, City of Forest Park Valencia Williamson, President & CEO, Clayton County Chamber of Commerce

55 Professional Services: 11) Economy:

29 Interview: Andrew Carnes, Vice President of Economic Development, Partnership Gwinnett

31 Interview: Chris Clark, President & CEO, Georgia Chamber of Commerce

12 Economy in numbers:

14 Southeast pillar: Anchored by the world’s busiest airport, all signs are looking up for the Atlanta metropolitan area

15 I nterview: Pat Wilson, Commissioner, Georgia Department of Economic Development

16 Interview: Eloisa Klementich, President & CEO, Invest Atlanta

19 Interview: Al Thurman, Mayor, City of Powder Springs

22 Interview: Kevin Green, President & CEO, Midtown Alliance

24 Interview: Doug Hooker, Executive Director, Atlanta Regional Commission

26 Roundtable: Gwinnett County Nancy Harris, Mayor, City of Duluth Rey Martinez, Mayor, City of Loganville Nick Masino, President & CEO, Gwinnett Chamber of Commerce Craig Newton, Mayor, City of Norcross

6 | Invest: Palm Beach 2019 | CONTENTS

32 Interview: Vince Williams, Mayor, Union City

35 Down, not out: Tourism dollars have been left on the table due to COVID-19 but Atlanta is weathering the storm

36 Interview: Mark Jaronski, Deputy Commissioner, Tourism, Explore Georgia

38 Interview: Fabrizio Calvo, General Manager, W AtlantaMidtown

39 Interview: Stephane Mercier, General Manager, Waldorf Astoria Atlanta Buckhead

40 Roundtable: Tourism in Atlanta Lisa Anders, Executive Director, Explore Gwinnett Tourism + Film Office Steve Cannon, CEO, AMB Sports and Entertainment Mercedes Miller, Executive Director, Georgia International Convention Center Ramon Reyes, General Manager, Omni Hotels & Resorts

56 On the frontline: Professional services proved a lifeline for many businesses and individuals during the pandemic

57 Interview: Corky Dawes, CEO, Peachtree Planning Corp

60 Interview: Brian McEvoy, Atlanta Office Managing Partner & Chair of Investigation Division, Polsinelli

64 Interview: Steve Lewis, Chair, Troutman Pepper

65 Interview: Rand Meyer, Office Managing Partner, Dixon Hughes Goodman LLP

68 Roundtable: Tax in Atlanta Richard Kopelman, CEO & Managing Partner, Aprio, LLP Seth McDaniel, Managing Partner, Frazier & Deeter Atlanta Bert Mills, Managing Partner, Moore Colson CPAs and Advisors – Atlanta Michael Valerio, Technology Industry Practice Leader Atlanta Practice, Cherry Bekaert 71 Market voices: Practice perspectives Garry Capers, Division President, Deluxe Corporation Aldo LaFianda, Partner-inCharge, Jones Day – Atlanta Harrison Roberts, Managing Partner, Parker, Hudson, Rainer & Dobbs LLP John Wright II, CEO & Managing Partner, Northwestern Mutual Goodwin, Wright 72 Roundtable: Legal perspectives Gary Barnes, Managing Shareholder, Baker Donelson Theodore Blum, Managing Shareholder, Atlanta & Chair, Atlanta Corporate and Securities, Greenberg Traurig, LLP Maxine Hicks, Chair, Atlanta Real Estate Practice & Global Co-Chair of Infrastructure, Construction and Transport Sector, DLA Piper Allen Maines, Immediate Past Executive Partner, Atlanta, Holland & Knight LLP

75 Real Estate:

76 Resilient: The region’s real estate foundation has resisted the pandemic’s most dramatic ripple effects

77 Interview: Matt Bronfman, Principal & CEO, Jamestown

79 Market voices: Residential trends Patrick Chesser, Managing Director, Mill Creek Residential Trust Teresa DeVos, Senior Vice President, RKW Residential Atlanta Jennifer Pino, President, Atlanta REALTORS® Association Noah Randall, Managing Director, Alliance Residential

80 Interview: Kevin Palmer, CEO & Founder, PalmerHouse Properties

81 Interview: Zac Gruber, Managing Director, Banyan Street Capital

82 Interview: David Howard, President & CEO, Lee & Associates

84 Interview: Lily del C. Berrios, Principal & President, Sizemore Group

86 Roundtable: CID outlook Jim Durrett, President & CEO, Buckhead Coalition Ann Hanlon, Executive Director, Perimeter CID Matthew Lee, Executive Director, Tucker-Northlake CID Kim Menefee, Executive Director, Cumberland CID

88 Market voices: Landscape Alex Hay, Executive Director, Drapac Capital Partners Faron Thompson, Regional Managing Director, NorthMarq Atlanta Brian Ward, Chief Executive Officer, Global, Trimont Real Estate Advisors Chris White, Vice Chairman, Director Southeast Region Lead, Savills Atlanta

89 Interview: Tim Perry, Managing Partner, North American Properties

90 Interview: Alyssa Davis, Executive Director, Sugarloaf CID

92 Interview: Kevin Murphy, Managing Director, Newport

95 Construction & Infrastructure:

96 Essentially strong: Solid fundamentals have helped buffer the construction and infrastructure sectors but a talent shortage remains

97 Interview: Niles Bolton, Chairman & CEO, Niles Bolton Associates

99 Market voices: Lay of the land Michael Bartlett, Executive Vice President, JE Dunn Construction Randall Hall, President & CEO, Batson-Cook Construction Casey Hill, Division President, Lennar Karl Mistry, Regional President, Toll Brothers

101 Interview: David Dymecki, Managing Director, Perkins + Will 102 Market voices: Architecture Craig Anderchak, Principal, NELSON Worldwide Chuck Hull, Principal, Smallwood Stephen Swicegood, Principal, Southeast Region Client Relationships Leader, Gensler Bill Tunnel, Founding Principal, TSW 104 Interview: Chris Bontrager, Business Unit Leader, DPR Construction 106 Interview: Janet Simpson, President & CEO, tvsdesign

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ECONOMY OVERVIEW

Contents: 107 Planning ahead: Regional infrastructure plan sets the course for an expanding population and economy 109 Interview: Peter Heintzelman, President & CEO, Cobb EMC 110 Interview: Kevin Greiner, President & CEO, Gas South

111 Transportation & Logistics:

112 Easy access: Having the busiest airport in the world helps solidify Atlanta’s reputation in the air, on the road or by rail 113 Interview: John Selden, General Manager, Hartsfield-Jackson Atlanta International Airport 116 Interview: Shannon James Sr., President & CEO, Aerotropolis Atlanta Alliance, Inc 119 Interview: Jeffrey Parker, General Manager & CEO, Metropolitan Atlanta Rapid Transit Authority

121 Banking & Finance: 122 Built for prosperity: Consolidation in the sector has bolstered balance sheets and created a healthy landscape

123 Interview: Jenna Kelly, Northern Georgia Region President, Truist 124 Roundtable: Consolidation Greg Newman, Managing Director, Bank OZK Dan Oliver, CEO, Vinings Bank Sam Tortorici, CEO, Cadence Bank Doug Williams, President & CEO, Atlantic Capital Bank 127 Interview: Howard Kim, Market Executive Metro Atlanta, Wells Fargo Commercial Banking, Wells Fargo Bank 130 Interview: Eddie Meyers, Georgia Regional President, PNC Bank 134 Roundtable: Serving the community Brian Albrecht, President & CEO, Credit Union of Georgia Stan Kryder, Regional President, CenterState Bank - Atlanta Bill Linginfelter, Area President, Regions Bank David Preter, CEO, Georgia’s Own Credit Union 136 Interview: Palmer Proctor, CEO, Ameris Bank 138 Interview: Cynthia Day, President & CEO, Citizens Trust Bank – Atlanta

140 Market voices: Market needs Kenneth Davis, President, Renasant Bank Steven Deaton, President & CEO, Cornerstone Bank Sam Donley, Senior Vice President & Head of Business Banking Team, City National Bank Marc Veach, Managing Director & Atlantic Region Head, CIBC U.S.

143 Healthcare: 144 Anatomy of a Pandemic: 146 Global reputation: Atlanta leads the state in healthcare services with a world-renowned ecosystem 147 Interview: Pam Stahl, President, Anthem Blue Cross & Blue Shield 148 Interview: Pete McCabe, CEO, Ciox Health 150 Interview: Dr. Michael Dolister, CEO, ApolloMD 151 Interview: Dan Fellner, CEO, Georgia Urology

157 Pandemic Response: 158 Standing together: Cooperation is the name of the game as local leaders fight the battle of a lifetime 159 Interview: Patti Garrett, Mayor, City of Decatur 160 Roundtable: Mayor’s corner Eric Clarkson, Mayor, City of Chamblee Steve Edwards, Mayor, City of Sugar Hill Jim Gilvin, Mayor, City of Alpharetta Mike Mason, Mayor, City of Peachtree Corners 162 Interview: Derek Norton, Mayor, City of Smyrna 163 Interview: Sharon Mason, President & CEO, Cobb Chamber of Commerce 168 Interview: Elizabeth Carr-Hurst, Mayor, City of Fairburn 169 Interview: Mike Boyce, Commission Chairman, Cobb County

8 | Focus: Atlanta 2020 | CONTENTS

Atlanta 2020 ISBN 978-0-9988966-1-8 President & CEO: Abby Melone Chief Financial Officer: Albert Lindenberg Regional Director: Jack Miller Executive Directors: Josh Greenberg, Chris Chapman Associate Director: Shain Collins Senior Editor: Mario Di Simine Art Director: Nuno Caldeira Regional Editor: Max Crampton-Thomas Writers: Esteban Pages, Tomas Sarmiento, Sara Warden elipe Rivas, Contributing Writers: F Max Crampton-Thomas Editorial Assistant: Claudia Martinez

170 Metro Atlanta Speaks 2020 COVID results:

173 Education: 174 Adept at adapting: Local education institutions are among the nation’s leaders in a number of categories

Mary Schmidt Campbell, President, Spelman College George French, President, Clark Atlanta University David Thomas, President, Morehouse College 182 Interview: Thomas Hynes, President, Clayton State University

179 Interview: Nicholas Ladany, President, Oglethorpe University

184 Market voices: Business schools Maryam Alavi, Dean, Scheller College of Business at Georgia Tech Robin Cheramie, Dean, Michael J. Coles College of BusinessKennesaw State University Richard Philips, Dean, J. Mack Robinson College of Business Karen Sedatole, Interim Dean, Emory University’s Goizueta Business School

180 Roundtable: The HBCU perspective

186 Interview: Anne Skleder, President, Brenau University

175 Interview: Brendan Kelly, President, University of West Georgia 176 Interview: Victoria Seals, President, Atlanta Technical College 178 Interview: Leocadia Zak, President, Agnes Scott College

Interns: Sara Hansen Brendan Meagher, Focus: Atlanta is published once a year by Capital Analytics Associates, LLC. For all editorial and advertising questions, please e-mail: contact@capitalaa.com To order a copy of Focus: Atlanta 2020, please e-mail: contact@capitalaa.com All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, without the express written consent of the publisher, Capital Analytics Associates, LLC. Whilst every effort has been made to ensure the accuracy of the information contained in this book, the authors and publisher accept no responsibility for any errors it may contain, or for any loss, financial or otherwise, sustained by any person using this publication.

Capital Analytics Associates, LLC accepts no responsibility for the return of unsolicited manuscripts and/or photographs, and assumes no liability for products and services advertised herein. Capital Analytics Associates, LLC reserves the right to edit, rewrite, or refuse material.

Photo Credits: TOC: Pg. 6 – City of Kennesaw Pg. 7 – Buckhead CID Pg. 8 – City of Sugar Hill Pg. 9 – City of Dunwoody Economy: Pg. 11 – City of Kennesaw Pg. 11, 18 – City of Norcross Pg. 14 – City of Dunwoody Pg. 17 – Peachtree City Pg 20 – Peachtree Corners Pg. 28, 35 – City of Smyrna Pg. 32 – Georgia Chamber of Commerce Pg. 37 – City of Alpharetta Clayton County: Pg.43 – Clayton State University Pg.43, 49 – City of Jonesboro Pg.44 – City of Lovejoy

Professional Services: Pg. 55, 61 – Smith & Howard Pg. 56, 58 – Balentine Pg. 63 – Moore Colson Pg. 64 – Troutman Pepper Pg. 67 – Gwinnett Partnership Real Estate: Pg. 75,76,84,90 – Engel & Völkers Construction & Infrastructure: Pg.95, 107 – Batson-Cook Pg.96 104 – Brasfield & Gorrie Pg.100 – Choate Construction Pg.106 – tvsdesign Pg.108 – Nelson World Wide Transportation & Logistics: Pg. 111,112 – City of Decatur Pg. 111, 114 – MARTA Pg 116 - Buckhead CID Pg. 118 – City of Norcross

Banking & Finance: Pg. 121, 122 – Georgia’s Own Credit Union Pg. 128 – Cadence Bank Pg. 132 – Gwinnett Partnership Pg 138 - Balentine Healthcare: Pg. 143, 146, 148, 153, 154 – Emory University Pandemic Response Pg. 157 – Emory University Pg. 158 – Robinson College of Business Pg. 163, 164, 166, 168 – MARTA Education Pg. 173 – Oglethorpe University Pg. 173, 186 – University of West Georgia Pg. 174 – Robinson College of Business Pg. 178 – Georgia Piedmont Technical College Pg. 180 – Spelman College Pg. 182 – Kennesaw State University Business College Pg. 188 – Technical College System of Georgia

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Economy: Atlanta is known as one of the most important metropolitan areas in the Southeast. It has a diversified economy, is known for its musical and cultural heritage, world-class sports teams and the world’s busiest passenger airport. No wonder, then, that the area is ranked among the Top 15 best places in the country for business and careers.

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Economy in numbers: Unemployment Rate: Atlanta MSA versus Georgia and the United States Unemployment rate in Atlanta – Sandy Springs – Roswell, GA (MSA) Unemployment rate Unemployment rate in Georgia

15.0

12.5

Percent

10.0

7.5

5.0

2.5

0.0 Jan 2019

Mar 2019

May 2019

Jul 2019

Sep 2019

Nov 2019

Jan 2020

Mar 2020

May 2020

Jul 2020

Sep 2020

Source: U.S. Bureau of Labor Statistics

Employment Growth by Sector:

Census Snapshot: City of Atlanta:

Employment Growth

15%

10%

2019 Population Estimates

506,811

Median Household Income

$55,279

Persons in poverty

21.6%

5%

Educational Attainment: Percent high school graduate or higher

90.3%

0%

Persons without health insurance

11.1% $261,400

Trade; Transportation; and Utilities

Total Nonfarm Payroll

Natural Resources and Mining

Professional and business Services

Manufacturing

Leisure and Hospitality

Government

Financial Activities

Education & Health Services

Other Services

Construction

Information

Median Housing Value -5%

242,421

Total Housing Units

64,593

Number of Firms Male Median Income

$37,803

Female Median Income

$27,008

Veterans

19,179

Percent of households with a broadband Internet subscription

78.1%

Source: Metrostudy, Market Dashboard Report, Bureau of Labor Statistics, Moody’s Analytics.

Source: 2014-2018 American Community Survey 5-Year Estimates

Gross Domestic Product: Atlanta MSA versus Georgia and the United States (latest available) Millions of Dollars, Billions of Dollars

700,000 600,000

Total gross domestic in Atlanta – Sandy Springs – Roswell, GA (MSA) Total gross domestic product for Georgia Gross domestic product

500,000 400,000 300,000 200,000 100,000 0 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: U.S. Bureau of Economic Analysis

12 | Focus: Atlanta 2020 | ECONOMY

Per Capita Income: Atlanta MSA versus Florida and United States Per capita personal income in Atlanta- Sandy Springs- Roswell, GA (MSA) Personal income per capita Per capita pesonal income in Georgia

60,000 56,000 54,000

Dollars

50,000 48,000 44,000 40,000 36,000 32,000 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Source: BEA, St. Louis Fed

Atlanta MSA Consumer Price Index:

Fortune 500 Companies Based in Atlanta:

Over-the-year percent change in CPI-U, Atlanta-Sandy Springs-Roswell, GA, October 2017 – October 2020

Rank

Percent change 4.0

3.0

2.0

1.0

0.0 All items All items less food and energy

-1.0 O

D

F

Company

Revenue ($ mil)

26 The Home Depot

A

J

A

2017

O

D

F

A

J

A

2018

O

D

F

A

J

A

2019

O 2020

$110,225

43 United Parcel Service (UPS)

$74,094

68 Delta Air Lines, Inc.

$47,007

88 The Coca-Cola Company

$37,266

153 The Southern Company

$21,419

171 Genuine Parts Company

$19,392

177 WestRock

$18,289

309 PulteGroup, Inc.

$10,213

316 Newell Brands Inc.

$10,083

350 AGCO

$9,041

412 Veritiv

$7,659

428 Asbury Automotive Group, Inc.

$7,210

439 NCR Corporation

$6,915

459 Intercontinetal Excgange

$6,547

477 Graphic Packaging Holding Co.

$6,160

478 HD Supply Holdings, Inc.

$6,146

Source: U.S. Bureau of Labor Statistics

Source: Metro Atlanta Chamber

Housing Prices: Atlanta versus New York City, San Francisco and the US 280

Index Jan 2000 = 100

260 240

S&P/Case-Shiller GA-Atlanta Home Price Index S&P/Case-Shiller NY-New York Home Price Index S&P/Case-Shiller CA-San Francisco Home Price Index S&P/Case-Shiller U.S. National Home Price Index

220 200 180 160 140 120 100 80 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: S&P Dow Jones Indices LLC

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Southeast pillar: Anchored by the world’s busiest airport, all signs are looking up for the Atlanta metropolitan area With its low cost of doing business and easy access to global markets, it’s no coincidence that metro Atlanta is a hotbed of growth. Over the past decade, the region has become an important pillar in the Southeast that ranks among the Top 15 best places in the country for business and careers.

Home to an expanding variety of industries, including financial services, technology, life sciences and transportation and logistics, the region has grown to become the ninth-largest metro economy in the United States. A big part of that is the presence of the fastest-growing port in the country and the world’s busiest airport, Hartsfield-Jackson Atlanta International Airport, which serves more than 100 million passengers annually and acts as the gateway to international marketplaces. It doesn’t hurt that the air hub also puts 80% of the U.S. population within a two-hour flight from the city.

Its economic diversity, however, includes a large exposure to the entertainment, tourism and hospitality-related sectors. All have taken a hard blow from the COVID-19 pandemic, which has also taken a toll on employment and growth overall in 2020.

14 | Focus: Atlanta 2020 | ECONOMY

Demographics Incorporated as a city in 1847, 10 years after its beginnings as the town of Terminus that grew out of the site that was the southern terminus of the Western & Atlantic Railroad, the Atlanta metro statistical area (MSA) is now home to an estimated 2019 population of 6 million, making it the ninth-biggest city by population in the nation. It also has one of the fastest-growing populations in the country, having seen its number of residents climb by 734,000 between 2010 and 2019, the fourth-largest increase of all MSAs. By 2046, the population is expected to increase by almost 50%, reaching over 8.6 million people.

Across the MSA’s 29 counties and 8,686 square miles, the estimated median age in 2018 (latest figures available) was 36.6, lower than the national average of 38.2. Almost 40% of the population is over 25 years old and holding at least a bachelor’s degree, giving rise to an attractive talent pool. Just in the city of Atlanta, the population is almost 500,000. Breaking down the MSA numbers, 52.6% of the population is white, 34.3% is Black or African American and 10.9% is Hispanic or Latino. Asians make up 6.1% and almost 14% of residents are foreign born. ( )

ECONOMY INTERVIEW

Good business The state’s approach to business has helped spur growth, including new jobs, despite the pandemic

Pat Wilson Commissioner – Georgia Department of Economic Development What is driving job creation despite the pandemic?

Since March 14, 2020, when we put the governor’s executive stay at home order in place, the whole business landscape has changed. But thanks to Georgia’s approach to business during COVID-19, we still saw 72 new projects, over 7,800 new jobs announced and $2 billion in investments to date. Companies still recognize the need for long-term plans as we come out of lockdown. They continue to invest looking toward the future. The pandemic has provided an opportunity for them to automate and change business lines, to name a few strategies. Some of our companies that were planning toward the 2021 horizon to invest in automation and upgrade facilities are doing so now.

How is the department fostering the growth of Atlanta’s tech sector?

The tech sector has been one of the real hot points for jobs growth in the last few months. As COVID-19 is deeply transforming the retail industry, tech jobs are booming as a result of the bustling e-commerce activity. We continue to focus on ensuring we can provide the workforce to supply those jobs and keep them going. We are only as good as the long-term workforce in the pipeline for these companies. We created the Fintech Academy with the collaboration of Georgia Tech, Emory University, UGA and all the colleges in the University System of Georgia. There is a strong focus on growing jobs, especially the new jobs of the future, and making sure the graduating workforce is anchored in the latter. The state has also invested in the Georgia Cyber Center and the Cyber Workforce Academy. Its success prompted an investment for a second building before the first one was even full.

What primary corporate needs is Atlanta catering to in an effort to continue attracting business interest?

The U.S. market remains among the most stable markets worldwide, with a massive consumer base.

Even in the middle of a global pandemic, we are a safe bet for growth, for corporate investment and a sound logistical choice to remain close to the corporate consumer base. South Korea is a tremendously hot market for us, as showcased by the SKi investment in Jackson County. Electric vehicles, electric mobility, creating the batteries that will supply Volkswagen and Ford are the talk of the town. The other hot market for us is Germany. It has been and continues to be a steady stream of projects, many of those around the automotive sector. International investment has long been an important piece of the equation that makes up the Georgia economy and we continue to see that through COVID-19. www.capitalanalyticsassociates.com

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ECONOMY INTERVIEW

Driving ahead Industries critical to growth inform the strategies taken to ensure economic and community development

Eloisa Klementich President & CEO –Invest Atlanta sustainable, middle-wage jobs within the $35,000 to $80,000 salary mark. Atlanta welcomes businesses of all kinds but we are very interested in those that address this niche to reduce the income inequality gap. The information technology industry is key to the success of the future of Atlanta. Financial and business services continue to see robust growth in the city, as shown by the recent relocation of NCR’s global headquarters.

Fintech continues to be a high-growth industry with 70% of all credit card transactions passing through Georgia. Video production and distribution are driving growth in the film, television and creative arts industry, and the food processing and manufacturing sector is growing its footprint. The Atlanta airport, one of the world’s largest, continues to be an attractive asset to transportation and logistics companies here.

How have demographic inflows sustained economic diversification in Atanta?

Invest Atlanta has dedicated time, resources and effort to mapping out critical industries that are or poised to become economic drivers. This data informs our economic and community development strategies that guide investments to help ensure we support our high-growth, high-opportunity sectors.

This year, Mayor Keisha Lance Bottoms released the One Atlanta: Economic Mobility, Recovery and Resiliency Plan to address, more intentionally, the elephant in the room: income inequality in the city of Atlanta. The plan provides a roadmap to increasing economic equity, including investments that will create good and promising jobs for more Atlantans.

We are targeting companies that can create 16 | Focus: Atlanta 2020 | ECONOMY

How would you characterize the trend of Northeast companies setting up shop here?

We are seeing a lot more interest from companies in competitive markets like the Northeast because Atlanta has many advantages. Among other benefits, we offer access to a highly trained and educated workforce, including those coming out of our colleges and universities like Georgia Tech, Emory, Georgia State, Morehouse and Spelman. Atlanta is still affordable relative to other major markets like New York and Boston. Businesses see this as an asset for attracting and retaining talent in a welcoming city rich with amenities. It is interesting to see how quickly businesses are rethinking their strategies. Some of our long-term commercial corridor areas that have struggled to attract business to their retail centers are now reexamining that concept. With all the food delivery triggered by the virus, paying prime rent next to your consumer base comes into question. It will pose interesting scenarios for commercial real estate.

ECONOMY OVERVIEW

( ) In terms of income, wage distribution is growing more even, according to GINI coefficient calculations, reaching 0.475 in 2018, down from 0.479 in 2017, the latest figures available. But by far, poverty is experienced on a higher level across all age ranges by women. The largest demographic living in poverty in the area are women aged 25-34, followed by females 18-24. The most common racial or ethnic group living below the poverty line are Black people, with a staggering 73.8% share.

Average incomes lag behind the national level and residents have high levels of credit card debt, which is at risk of spiralling in the event of rising unemployment. Figures for COVID-19 cases and deaths per capita in Georgia are also both above the national average.

Government and COVID-19 Atlanta is both the seat of Fulton County, the most populous county in Georgia, and the state capital.

Fulton County, for the last five presidential elections, has voted overwhelmingly for the Democratic candidate. In 2020, Fulton County, which leans liberal, is served by a seven-member Board of Commissioners, elected every four years. Current Commissioners are Liz Hausmann, Bob Ellis, Lee Morris, Natalie Hall, Marvin S. Arrington Jr. and Joe Carn, while Robb Pitts is Chairman of the Board.

Atlanta’s Mayor Keisha Lance Bottoms belongs to the Democratic Party, while state Gov. Brian Kemp is a Republican.

Amid the COVID-19 pandemic, the partisanship in the metro Atlanta area led to some heated disputes

Atlanta has seen its job market increase by 2.9% over the last year.

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ECONOMY OVERVIEW

In 2018, the median household income in Atlanta was $65,345.

between the state and city representatives. Like other states, Gov. Kemp ordered a shelter in place across the state on April 2 but by the end of the month had already expressed a desire to begin easing those restrictions. By mid-June, the governor had lifted many restrictions, including a shelter in place order for those over 65 years old or in vulnerable categories.

Despite an executive order from Kemp, Mayor Bottoms imposed a requirement in the city of Atlanta to wear face masks, as well as other restrictions on businesses as the number of COVID-19 cases rose. At this point, the governor launched legal action against the city of Atlanta, which was later withdrawn. However, in mid-August, President Trump’s coronavirus task force “strongly recommended” a mask mandate be adopted in Georgia due to spiralling cases.

Due to the need to close businesses to stop the spread of COVID-19, the local city of Atlanta government set up the Resurgence Grant Fund 18 | Focus: Atlanta 2020 | ECONOMY

to complement the federal Paycheck Protection Program (PPP). The citywide fund intended to support economic growth in Atlanta by providing grants to those small businesses in Atlanta that qualified, covering pandemic-related costs. The funds contained several tiers, including up to $40,000 to reimburse costs of business interruptions, funds to purchase Personal Protection Equipment (PPE) and up to $10,000 of technical assistance that included legal resources and workforce development.

Other counties in the Atlanta metro area also showed concern for those smaller businesses that are the backbone of many communities. “From the county’s perspective, even when we were enforcing some of the protective orders, we did everything we could to minimize the business shutdown. We are constantly in touch with our local businesses to provide guidance and advice over how to operate safely. We will be looking for opportunities if there

CONSTRUCTION ECONOMY OVERVIEW

Al Thurman Mayor City of Powder Springs

What is a key recent highlight for the city of Powder Springs?

Our primary landmark is the construction of a $4.2-million Downtown park, which includes an amphitheater, water features, trailhead and art. It is our Downtown’s centerpiece. We hope it will help us attract other businesses, such as restaurants and retail development, as has happened in other cities that have used the same formula. The park is finished, beautiful and called Thurman Springs Park.

Small towns die out unless you come up with some type of plan to bring people into the Downtown.

Developers are already turning their attention to us as we have shown our interest and commitment to invest in our own future by investing in our Downtown.

is additional COVID-19-related funding available to minimize liabilities for small businesses,” said June Wood, chair of Henry County.

Economic performance In the 10 years from the Great Recession until the beginning of 2020, Atlanta saw incredible economic expansion, ending the decade-long streak with record-low unemployment in January. In the years after the financial crisis, the region actively diversified its economy, moving into almost every sector, from corporate to healthcare, logistics to film. Recent notable expansions and job announcements include the likes of Inspire Brands, BlackRock, Salesforce, Starbucks and Pandora, and the area is now ranked among the leaders in the country for most number of Fortune 500 headquarters.

There are a plethora of reasons behind the region’s rise. While metro Atlanta ranks among the Top 10

How is the city tackling affordable housing?

In 2019, I attended the National League of Cities in California and affordable housing was the most critical topic of conversation. We are engaged in conversations with developers to ensure their capacity to provide a percentage of affordable homes within their developments. This is a dire need for our public safety officials. We don’t want this to be a city where you can’t afford to live where you work. Police officers and public works employees all deserve new homes that match their economic possibilities whereas the available offers are $300,000 and up.

We are looking at all fronts to ensure we get that done.

What are your main goals and priorities for the city toward 2021?

With COVID-19, we have had to expand our technology, screening, dealing with virtual meetings, teleworking from home and things of this nature. We are hoping to have a grand opening for our flagship project, the Thurman Springs Park, early in spring if the landscape allows, and to then follow through with the plans already on the drawing board. www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

largest U.S. metros, it boasts a lower cost of living. It’s 102.4 reading on the Cost of Living Index among the Top 10 metros is bested only by Phoenix (98.9) and Houston (95.5). The median listing price for a home in Atlanta as of May 2020 was $334,386, putting it in sixth place among the Top 10, Real estate website Redfin characterizes the Atlanta housing market as somewhat competitive. .

The housing market also regained pre-recession values in January, with tight housing supply driving up prices, although this also brought with it concerns surrounding affordable housing. The city is adopting a plan to help the city’s lower-income residents access affordable housing and jobs alongside Invest Atlanta.

The One Atlanta Economic Mobility, Recovery, and Resiliency Plan focuses on creating better outcomes in areas of high poverty and unemployment.

Before COVID-19, metro Atlanta’s total real Gross Domestic Product (GDP) had also been on a steady rise in the decade since the Great Recession. The last reading in 2018 hit $357 billion, a 2.6% increase on the year before and making it the tenth largest economy in the United States. The headwinds from COVID-19 put the brakes on the regional economy but since April there has been steady improvement in most areas, including employment.

One area of untapped potential for Atlanta companies is the consumer market, especially for Black consumers. According to the University of Georgia’s Jeffrey Humphries, since social unrest became the focal point of the summer, companies have been investing millions in inclusiveness programs, and this is one market businesses could tap into. The Black consumer market is experiencing

Atlanta is widely considered to have one of the best outdoor music scenes in the United States.

ECONOMY OVERVIEW

above-average growth, according to Humphreys, and is expected to reach $1.8 trillion in the United States by 2024.

Employment Of course, before people can consume anything, they need jobs. In 2020, the pendulum swung from record employment rates to record unemployment.

From a historic low of 2.8% at the end of December 2019, the COVID-induced jobless rate soared to nearly 13% in April amid pandemic measures that included business closures and shelter in place orders.

Even as the economy reopened, challenges persisted as fear continued to keep many away from office spaces, which had a negative knock-on effect to local vendors. Around two in five people in Georgia — or 40.3% of its workforce —filed for unemployment after the state reopened its economy on April 30. In Georgia,

the industries most affected by unemployment were consumer-facing accommodation and hotel services, which registered 140,000 claims in the period ending April 30. This was followed by healthcare and social assistance, as well as administrative support, waste management and remedial services, both of which registered just over 106,000 claims.

Until the end of July, those filing for unemployment received additional government funds from the CARES Act of around $600 per week. In August, President Trump issued an executive order allocating additional weekly unemployment benefits of $400, with a stipulation that states must pay $100 additional per worker, although some governors said these funds were unavailable.

To see what the future employment picture could look like post-COVID, a look back is in order. Median annual income in the Atlanta MSA was $65,345 ( ) www.capitalanalyticsassociates.com

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ECONOMY INTERVIEW

Moving forward Despite the ‘colossal’ disruption wrought by the pandemic, new development is progressing in Midtown

Kevin Green President & CEO –Midtown Alliance office towers that are in development. It also looks like Google is going to take at least 450,000 square feet in Midtown for its regional tech offices.

This area continues to be a very dynamic market in the Southeast. Technology continues to be a big focus of this market and the fact that you can nestle in and around major anchor institutions like Georgia Tech, Emory University Hospital Midtown and the Atlanta campus of the Savannah College of Art & Design is great.

There are also several infrastructure projects that we lead, including streetscapes, multimodal lanes, parks and plazas. Our transit agency, MARTA, also has a lot of work under way thanks to the half-penny sales tax that was passed a couple of years ago, which will bring about $2.7 billion in local money for transit projects.

What developments would Midtown Alliance highlight as the most relevant for this year?

It’s not the 2020 any of us were planning for and it’s been a colossal disruptor. Nonetheless, new development continues to move forward as if nothing happened.

Our district is about 1.2 square miles and we have 17 major developments that are coming out of the ground right now, including 3.6 million square feet of office, plus hospitality and multifamily. All in, it’s about 6 million square feet of new development that continues unabated.

There have also been a couple of major announcements since the pandemic began. Microsoft announced the location of a major technology unit in Midtown, with about 1,500 jobs. It’ll be focused on AI and cloud services. It’s going to occupy space in two 22 | Focus: Atlanta 2020 | ECONOMY

How is Midtown Alliance looking at public safety issues?

We have a very robust supplemental public safety program called Midtown Blue, which is celebrating its 20th anniversary this year. It’s a seven-day a week, 24-hour a day program. We have civilian public safety officers who are well-trained and do not have arrest power, so they are sort of an alternative public safety mechanism. In Midtown, we saw our share of demonstrations over the summer and were pleased that there was no damage. As we see it, several things worked together. Demonstrators made their voices heard without damage or violence. Our police force did a good job giving demonstrators room, providing them escorts and protecting them from traffic. We also put a lot of emphasis into creating a welcoming experience in the public right of way. I believe that when you trust people and you create a place that feels welcoming to them, people rise to the occasion. If you try to lock an urban district down and make it like people are not welcome here, that sends its own message.

ECONOMY OVERVIEW

( ) in 2018, higher than the U.S. average of $61,937, and marking a 13.5% increase on the $57,597 recorded in 2017, suggesting continued growth which could be emulated once the world returns to a new normal.

In the same period, Atlanta added 257,000 jobs.

The majority of Atlanta’s jobs are in management, business, science and the arts, with management occupations the most common in the city, followed by sales and related occupations and business and financial operations. Health and education services also provide a significant number of jobs at 50,200 in 2018. Delta Air Lines is the region’s biggest employer, providing 31,237 jobs.

Attracting business One of Atlanta and the state of Georgia’s strongest characteristics is the ability to attract businesses. The Atlanta MSA frequently is among the leading metros for doing business, not just in the United States but all over the world. In 2019, Georgia was voted Top State for Business by the Area Development publication for the sixth consecutive year. The state not only has an attractive fiscal policy, with a low corporate tax of 5.75%, but it also has a growing population and a plethora of workforce training programs including Georgia Quick Start. Nine out of 10 Fortune 500 companies have operations in the state, with 18 headquartered here.

Atlanta itself has a lot to do with the accolades.

In the 16th Annual Metro Rankings Report, Atlanta

Atlanta was the No. 1 tech hub for growth leaders in the Annual Metro Rankings Report came in first position as a tech hub for growth leaders and was No. 2 for best business climate for large businesses. It was fourth in startup leaders, sixth in startup ecosystems, eighth as a millennial magnet, seventh for data center leaders and third for corporate headquarter leaders.

One reason Atlanta is able to attract so much business is its large, young, growing workforce, and authorities have locked eyes on this. The state earned the top ranking in January for workforce development in the South Atlantic region in Site Selection Magazine’s 2020 Workforce Development Rankings. Even in the midst of a pandemic, companies are still eager to settle in Georgia. In August, the state announced roughly $574 million in new investments and ( )

A. J. Robinson President – Central Atlanta Progress, Inc

Our organization does a lot of aspirational planning, and our most recent plan, completed a couple of years ago, identified a number of priorities for our community. One of the priorities was to improve sustainability in the Downtown area. We are making a huge effort to encourage local residents to embrace that initiative, and we have public-private partnerships with the city, county, state and federal authorities that develop sustainable real estate projects. For example, we worked alongside the Atlanta City Council on the Better Buildings Challenge, which generated 20% savings on energy and water consumption citywide this year.

Going forward, we are keen to look at ways to implement more solar energy and assess how new technologies can help improve our management of food waste as a community.

www.capitalanalyticsassociates.com

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ECONOMY INTERVIEW

Innovation A strong educational asset base and research facilities underpin the region’s ‘smart’ movement

Doug Hooker Executive Director – Atlanta Regional Commission When we entered the pandemic in the region, the agency quickly pivoted into the remote work environment, as the groundwork had already been laid for this. But we found a lot of local organizations and businesses had failed to consider remote work programs. One of ARC’s teams, Mobility Services, specifically helps businesses think about telework as a way of reducing pressure on traffic. Through the beginning of the pandemic, there was a surge in demand for that unit’s services. We had governments and businesses establishing telework programs in a matter of weeks. Many executives have discovered that their workforce can work remotely, some with significant increases in production. We did a survey and a series of focus groups, to gauge the scope and impact of teleworking. We were surprised that many CEOs and employees said that teleworking will be incorporated into their operations and plans going forward.

How is ARC involved in bringing technology to Atlanta’s communities?

In Atlanta, we have a strong asset base in our colleges and universities, which have over 260,000 students.

We also have major research universities with Georgia State, Georgia Tech and Emory. This provides a great source of potential innovation and human capital.

ARC has been in a partnership for the last three years with Georgia Tech and Georgia Power on the Smart Cities Challenge. We provide grants along with technical assistance to a select number of communities throughout the state, to help them test and advance various concepts around smart communities.

How might mobility projects evolve with the increased popularity of remote work?

24 | Focus: Atlanta 2020 | ECONOMY

What are some of the other challenges Atlanta is facing and how are these being addressed?

The public health situation has exacerbated factors that already existed. One of those is social unrest due to our societal inequities, and one example of this can be seen in food insecurity. A lot of people were on the breadline pre-pandemic and around 30% of the households in the region said they had to skip a meal in order to make family budgets work. We know those numbers have gone up dramatically and now we know there will be a larger number of food-insecure people for years to come, even if the economy gets back on track next year.

Led by the Atlanta Community Foodbank, the Foodwell Alliance and others, community leaders are now working on piloting some permanent changes in our food supply infrastructure. We expect to begin the pilot with one or two south metro cities.

ECONOMY OVERVIEW

( ) 3,629 new jobs created in nearly every region of including $1.3 million in new loans last year. Our the state to kick off the first month of fiscal 2021. “Last programs stimulate economic growth while helping year was positive for Georgia in terms of economic entrepreneurs fulfill the dream of owning their own growth. Atlanta continues to be the driving force business. From job creation to affordable housing to behind that progress, but last year, we started seeing small business development, Invest Atlanta programs our second-tier markets like Savannah and Albany made a $2.2 billion total economic impact on the city recruit new businesses and expand existing industry,” last year.”

Investment attraction is also about diversity and said Chris Clark, president and CEO of the Georgia inclusion, said A.J. Robinson, president of Central AtChamber of Commerce, in an interview with Focus:.

Invest Atlanta President and CEO Dr. Eloisa lanta Progress, Inc. “We need to figure out the equality model in Atlanta, because there is Klementich added that prior to still a gap between the haves and COVID, Atlanta was a mirror of the the have-nots in the city. We must state’s growth. “2019 was another ensure that Atlanta remains afsuccessful year for economic fordable to guarantee long-term and community development growth and prosperity. There are in the city of Atlanta. We issues in our public school syscontinue to see robust growth, tem on a state level, which is not as showcased by job creation producing enough quality-edunumbers and new investment cated workers. Companies in the from companies relocating and area agree that the local talent expanding here. Invest Atlanta pool is limited, which is stuntfacilitated the creation of 8,685 Eloisa Klementich ing growth margins. Fortunately, jobs, representing new capital to Invest Atlanta there has been an influx of workthe city to the tune of $1 billion.

Alongside job creation, concerted efforts were made ers to the Atlanta area from other states, which has to increase the availability of affordable housing. Last masked some of the issues in our education system. year, Invest Atlanta provided financing for more than We can continue to survive on this inward migration 735 new affordable housing units throughout the city.” in the short term, but in the long term the city will Among the keys to the region’s success are its small suffer if education doesn’t improve.”

Among the key investors in the state are foreigners. In businesses but finding financing can be a barrier for many. Invest Atlanta is helping to weaken that fiscal year 2019, almost half of the $7.4 billion invested hurdle, said Klementich. “Access to capital can be a in Georgia came from foreign direct investment hurdle for many small business owners. Hence, we (FDI). In particular, South Korea invested $1.7 billion continue to expand our small-business program, in Korean-owned battery plant SK Innovation, ( )

We continue to expand our smallbusiness program, including $1.3 million in new loans last year.

®

oundtable:

Gwinnett County Leaders from around the county discuss the economy in their respective areas and the impact from technology and innovation.

Nancy Harris Mayor City of Duluth

What efforts are being made to diversify Duluth’s local economy?

Duluth’s economic development staff is reaching out to businesses that would be a good fit for Duluth’s sustainability, keeping an inventory of vacant property, helping property owners keep their properties in tiptop shape, as well as establishing relationships with all of Duluth’s local businesses, including our large global businesses. Duluth’s diversity is mirrored by our high school system, which provides learning programs for 56 languages. We are definitely a minority-majority city.

How are you accommodating the city’s 2021 budget?

For 2020, revenues came in as expected through our property and occupational taxes. We still have not extended our 2021 budget. We have cut back several hundred thousand dollars so we can prepare for that next budget. Since 2010, we’ve established a goal of avoiding going into our reserves. This goal will be maintained for 2020. We will be in good shape when 2021 arrives, maintaining a frugal spending philosophy.

What are the benefits for a city like Duluth from work from home measures?

It has been an eye opener for several companies to realize people can work just as effectively from home.

It will be a great benefit for any city within Gwinnett that is developing city centers, such as ours. It is going to show how great it is to live near a downtown so you can walk to your amenities and stay at home to work. In an indirect way, it will provide a boost for our economy in that shopping and living local is more convenient.

26 | Focus: Atlanta 2020 | ECONOMY

Rey Martinez Mayor City of Loganville

How are the city’s plans to revamp the Downtown area and improve infrastructure progressing?

Last year, our focus was on developing our Downtown.

We are not a county seat so we have a small Downtown, which is basically a block between two major highways.

We were looking into a major mixed-use development, which many smart communities in the metro Atlanta area are doing. We found a developer that suited our needs but unfortunately this did not work out. Some council members decided this was not the correct direction for the city. We are hoping that Main Street will be developed, although that has been put on hold for now. With that being said, we still have a lot of homes that are in the process of getting permitted. We are excited about attracting new citizens, and a big part of the attraction is our schools. Loganville is also one of the safest cities in the state, so what better place than Loganville to educate a family and keep them safe?

How does the arrival of a company like Facebook to the county impact a city like Loganville?

When a multibillion-dollar company comes to your county, there are a lot of players involved and those employees need a place to live. We may not have the industry but we have the entertainment and residences.

Walton County as a whole has attracted many hightech industries, such as Takeda and Hitachi, so we can provide a base as a satellite city. We may not have the capacity for the major manufacturing industries but we have attracted many large retail outlets and restaurants in the last few months, including Chipotle, Popeyes, Del Taco and Chicken Salad Chick.

ECONOMY ROUNDTABLE

Nick Masino

President & CEO Gwinnett Chamber of Commerce

How is the county and chamber leading innovation and job growth efforts?

Innovation is thriving in Gwinnett County as a leader in technology companies, US patents, and job growth for 40 years. More recently the city of Peachtree Corners has become the SE U.S.’s best example of a smart city.

This is led by their Curiosity Lab at Peachtree Corners, which is a publicly funded living lab designed to provide a real-world test environment to advance next-generation intelligent mobility and smart city technology, along with their one of-a-kind autonomous vehicle test track.

Gwinnett County has also begun construction of The Water Tower, Global Innovation HUB @ Gwinnett is a global water innovation center for the water industry with a $35-million investment. This will be the Silicon Valley of water research in the United States and in the world.

What are your priorities going forward?

We are the most diverse county in the Southeast and we are the 37th-most diverse county in the United States.

This is another byproduct of why people move here.

It is important for us to continue being inclusive. The Gwinnett Chamber just appointed our 2021 board and it is the most diverse board group in our history.We are focused on educating and assisting our businesses and members in this inclusivity initiative.

Another focus is to grow businesses and we want to continue to drive jobs and investment for the health of the county. We are focused on the demands of our members and we are conscious that we may still be dealing with this pandemic in the next six to 12 months.

We will continue to be here for our members.

Craig Newton Mayor City of Norcross

How is the city positioned in terms of performance?

We recently received the news that the city of Norcross 2020 tax digest for real and personal property reached the $1-billion mark in assessed value. This is a great milestone to celebrate in our 150-year anniversary.

Currently, we have about $300 million in recent and ongoing residential investment throughout the entire city. We are no longer that hidden jewel north of Atlanta, the word’s out on us. We are happy about that, and we have over 900 residential units under construction.

How are you tapping into Gwinnett County’s technological boom?

That’s very important. We have several high-tech companies that call Norcross their home. As featured in a Time magazine article, Norcross has the most patents in its geographic area in the state of Georgia. We’ve certainly been tapping into ingenuity and new inventions and creations. We are tech-savvy here. Plans for our new library include 1,500 square feet of maker space facilitating entrepreneurial, technological and artistic interests.

How have you been formulating the city’s budget, taking into account the higher tax digest?

We started a couple of months ago and are looking for ways to streamline some things. What we’ve seen was roughly an 11% decrease in revenue, so we had to make adjustments. We see ourselves rebounding very well next year. Because we are proactive in our efforts this year, we are not going to see any major cutbacks in our budget for fiscal year 2019-20. We are doing quite well. www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

( ) which broke ground in March. In total, Asia accounted for almost one-third of all FDI, providing 2,961 jobs on 23 projects. European investment provided almost as many jobs, contributing 2,835 with a total investment of $708 million. Canada and South America contributed the next highest number, giving $206 million to create 149 jobs and $24 million to create 153 jobs, respectively.

Some of the friendliest conditions can be found in Atlanta, itself, with its favorable fiscal policy, worldclass logistics market, access to capital, friendly government and strong international ties. Leaders are continuing to focus on how to make costs even lower through newer and better incentives. And despite being one of the states with the highest numbers of counties just behind Texas, small, separated governments work well together to attract foreign investors, anchored by the Metro Atlanta Chamber of Commerce and its global trade and investment plan for the region.

The Atlanta Job Market is able to pull talent from 5 major colleges and universities which are all almost within walking distance of each other.

Startup culture Not only does it attract some of the biggest multinational corporations, Metro Atlanta is frequently lauded for its strengths in telecom, cybersecurity, fintech, digital media and a thriving mobility ecosystem. As of August 2020, Atlanta’s office leasing volume driven by tech companies was up 71% on the year, while that in San Francisco fell by 74%.

The city has attracted more than 13,000 technology companies and the pace is not slowing. The city ranks No. 1 for gaming, No. 7 for tech talent and No. 1 for startups outside of New York and San Franscisco.( )

ECONOMY INTERVIEW

Cutting-edge Innovation and technology development are at the heart of Gwinnett County, which is building the ‘community of tomorrow’

Andrew Carnes Vice President of Economic Development – Partnership Gwinnett What major developments is the county pursuing?

Even though we are facing a speed bump in the shape of a pandemic, we are still pushing forward a number of projects. Three major announcements, in terms of economic development projects in Gwinnett, include Amazon’s first robotic distribution center located in the state of Georgia. It is a sizable revenue generator, as well as a strong job creator. Parallel to that, CarMax established an experience center in Peachtree Corners.

They needed over 35% of their employees to speak multiple languages and they found that in Gwinnett.

Did you know in our school system we speak over 100 languages and have a diversity index of 80%?

Another landmark project is the Water Tower project, an innovation center to test water-based technology.

We are already signing contracts with tech companies to come and test their new developments to ensure we have clean and drinkable water.

How are these cutting-edge projects setting Gwinnett apart from other areas?

Gwinnett has worked hard to set itself apart. We have over 250,000 square feet of incubator and accelerator space throughout the county, which is crucial to the ecosystem we are building. Curiosity Lab, in Peachtree Corners, is one of the first smart cities in the world. It is providing companies the opportunity to test out innovative technologies and components for a variety of applications. It is a stepping-stone in creating a mobile connectivity ecosystem. It boils down to Gwinnett County looking toward the future. Our county’s diversity is exactly how the rest of the country is going to look by 2040. Many communities have their eye on Gwinnett County because it is the community of tomorrow.

How do these forward-looking initiatives help your efforts to attract companies looking to relocate?

Partnership Gwinnett’s job is to sell our community as a great place to do business – and it is. We have a low cost of doing business, incredible diversity and can provide everything that companies are looking for to grow and expand over the next 10 years. In addition to this solid foundation, we can also tout innovative projects like Curiosity Lab and the Water Tower project as well as the other great things our cities are doing to create a sense of place.

One of the biggest things Gwinnett’s 16 cities did during the pandemic was to come together as one voice with a stay at home order. It is extremely rare to have multiple jurisdictions come together as one voice, in a single press release. These things provide our team with the needed tools to recruit companies to Gwinnett and to retain those we already have. www.capitalanalyticsassociates.com

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Atlanta Startup Culture – An Overview ECONOMY OVERVIEW

Atlanta has seen a steady expansion of its entrepreneurial ecosystem to become one of the country’s top tech and innovation centers. Software is among the strongest areas of investment.

Here is how the ecosystem breaks down, according to leading innovation platform Crunchbase.

Number of Organizations:

Crunchbase Rank:

Number of Founders:

Average Founded Date:

486

9,038

729

Nov 12, 2012

Percentage Non-Profit:

Number of For-Profit Companies:

Number of Non-profit Companies:

Top Funding Types:

0%

465

1

Top Investor Types:

Private Equity Firm, Accelerator, Entrepreneurship Program,

*November 2020

*Funding rounds

888

Seed, Series A, Pre-Seed, Angel, Series B

*Total funding amount:

$7.3 billion

*No. of Acquisitions:

*Number of Investments:

48

54 Source: Crunchbase

ECONOMY INTERVIEW

Diversity pays off An ‘extremely diverse’ economy is paying dividents in Georgia as companies look to relocate

Chris Clark President & CEO – Georgia Chamber of Commerce What is driving the growth of Georgia’s second-tier markets?

Leading up to the pandemic, there was fast-paced expansion and the biggest problem for local businesses was finding qualified, highly-skilled talent.

National and foreign companies were also relocating their manufacturing, distribution, logistics and headquarters to Georgia. The second-tier markets attracted a large portion of the manufacturing relocations, while Atlanta is the ideal location for innovation centers and HQs. Georgia’s economy is extremely diverse and that is paying off by attracting a wide variety of businesses to the state. We are optimistic that we can maintain this level of economic development as we move through this recession and into a more resilient economic position for the future.

How does the chamber plan to help newly unemployed workers get back into the labor force?

In the short term, we need to work with universities and technical colleges to help people who are unemployed, right now, get the new skills they will need. Over the next five to 10 years, it is predicted that artificial intelligence will eliminate almost 40 million jobs in the United States, which will have a huge impact on Georgia. We believe there is an opportunity for displaced workers to start their own businesses, so we need to ensure that we provide a support system for entrepreneurs, including access to capital. We saw a boom in startup launches from 2010-2012, and we hope to see more of the same over the coming years. We see great opportunities for new companies in sectors like biotech, renewable energy and sustainability and digital disruption.

What needs to happen from a legislative perspective to fuel Georgia’s growth for the coming years?

Transportation infrastructure will be a vital issue. We need to plan how to continue building out rail and road networks, airports and bridges. We believe we need around $2.5 billion in investment per year for the next 30 years just to address our current growth patterns from a logistics standpoint.

Social issues will also be important. By 2030, Georgia is projected to become a minority-majority state. We need to make sure that we can provide high living standards for our increasingly diverse population, with a philosophy of government that is welcoming and nondiscriminatory. Thankfully, this year, Georgia passed much needed hate crimes legislation that will have a strong impact on our ability to affect change in the area of minority-business growth. www.capitalanalyticsassociates.com

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Vince Williams Mayor Union City

What infrastructure work is being done via the SPLOST tax?

Much of our infrastructure has been financed by the Transportation Special Purpose Local Option Sales Tax (T SPLOST) that was approved a few years ago.

Union City and 14 other cities worked together to initiate a referendum to allow residents to consider the tax. Voters approved the referendum for the 75-cent sales tax that funds critical transportation projects.

Union City selected projects that include resurfacing of our corridors and pedestrian lanes, bike- lane improvements and congestion mitigation. All of the projects earmarked reach almost $24 million in funding to help support safe and reliable transportation within our community.

The tax ends in 2022 and we are looking at the possibility of putting it on another ballot for 2021. The good thing is that people can now see where those tax dollars went. It’s tangible.

What is the city looking at in terms of business development and attraction?

We have several economic development projects in the hopper right now. One of the most celebrated is the Atlanta Metro Studios, which has been a part of our city since 2014. It’s the largest, purpose-built studio in North America. They have two five-year deals, one with Netflix and one with HBO. We also have ASOS, which is a British online retailer that a lot of millennials have been using. Union City is where they set their first American footprint. They employ 1,700 individuals and this count is expected to grow by 200. We have a Coca-Cola United distribution center here, which is an $86-million investment that employs 572 people. We also have two Amazon developments in Union City and one has already come online. There is also an existing Amazon facility. That has pushed us into an area that we’ve been trying to get into, which is being able to attract some of the other amenities, such as restaurants and retail and entertainment.

32 | Focus: Atlanta 2020 | ECONOMY

Bank of America Plaza is a 1.3-million-square-foot office building that stands at the pinnacle of the Atlanta skyline.

( ) Even at the peak of the COVID-19 shutdown in April, the tech sector added 3,486 new jobs.

One of the reasons Atlanta is such a tech hub is the convergence of funding and innovation; both of which require and feed each other when it comes to startups. Atlanta is home to one of the world’s premier tech hubs, the Atlanta Tech Village, which was established by entrepreneur David Cummings, who invested a cool $20 million in a midrise Buckhead office building. After its transformation, the Tech Village is now a 100,000-square-foot hub of more than 180 companies. To date, the village has launched more than 300 tech startups, created more than 6,500 jobs and raised more than $826 million in capital.

Another important element in the region’s startup DNA is its business spirit, said David Nuckolls, interim executive director of the Georgia Centers of Innovation.

“People innovate for two reasons, either because they choose to or because they have to. From that perspective, we have seen many choose the latter as this current situation has caused many to innovate out of necessity. I think the ability for any business to pivot, first to keep people employed and second to help the local community, says a lot about the business spirit in Georgia. The way people were able to find ways to make it work and move things forward is a mark of the Georgia spirit. We have really shown our resilience during this time and our efforts have been successful so far.”

ECONOMY OVERVIEW

Eric Linton City Manager – City of Dunwoody

The city operates under public-private partnerships for most of its departments, except for our police force, the city manager and the city clerk. As all of the departments went remote, we rebid the contracts through Zoom, including procurement, interviews and the selection process. We came up with a new five-year contract with a variety of vendors. For 2020’s savings, which is critical for us for budgetary purposes, we established a flat cost.

2021 will, therefore, be at the same cost as 2020 and the five-year period will only witness a 5% increase. We were able to achieve the results through negotiations and competitive bid processes. It will enable us to provide top quality services for our citizens and the rest of the public who deal with the city of Dunwoody.

Looking ahead Atlanta has long been known as a darling of film, culture, food and music. As these industries suffer under the weight of the COVID-19 restrictions, others have emerged as the city’s champions. The prestigious education and entrepreneurial spirit of the city have brought together innovation and money — the perfect storm to create a hub for technology startups.

Unemployment rates are decreasing but the jobs returning seem to be coming from new industries altogether. That is not to say that Atlanta will forget its rich culture, but authorities are mindful of the importance of economic diversification.

Still, there is work to do. Atlanta is becoming a hub for finance, health and biotechnology, manufacturing, media and communications and logistics — all essential during a pandemic. Behind Delta Airlines, the city’s biggest individual employers are Emory University and Healthcare, Wal-Mart, The Home Depot and AT&T, collectively providing jobs to over 88,000 Atlantans. The money is still flowing into Atlanta with countless venture capitalists and angel investors eager to invest in the city’s entrepreneurship initiatives, but authorities need to ensure they maintain the correct conditions to keep the funds flowing.

www.capitalanalyticsassociates.com

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Down, not out: Tourism dollars have been left on the table due to COVID-19 but Atlanta is weathering the storm One reason for Atlanta’s rise as a Southern pillar is its long history as one of the South’s preeminent centers of entertainment. In addition to a rich mix of museums, galleries and concert halls, the region also offers world-class restaurants, sporting and music events, boutique shopping and the feeling of living in a green city, hence its nickname The City in the Forest.

It’s this aspect of the Atlanta landscape that attracts tourists year on year, but it is also these sectors that felt the crushing weight of the COVID-19 pandemic.

Social distancing, shelter in place and business closures were meant to contain the pandemic but the measures had a particularly devastating impact on small businesses. According to the US SBA Office of Advocacy, 43% of Georgia’s private workforce employees are created by its 1.1 million small businesses, many of them catering to the tourism and related segments. As the pandemic dragged late into 2020, tourism, arts and culture were the industries feeling the brunt of the virus.

Entertainment and culture Georgia in 2019 saw 111.7 million visitors, bolstered by a strong and growing international contingent,

$36.9 billion in travel spending and 478,000 tourism industry jobs. It’s a big industry and Atlanta takes a big chunk of it as the most-visited metro in the state.

The industry is also a big contributor to state coffers, delivering $3.4 billion in 2018 taxes.

2020, however, has been an unusual year by any standard. While it’s not yet known what the final toll will be, event cancelations in addition to business closures, have no doubt done massive harm. The Atlanta Convention Center’s 2020 calendar was “gutted,” according to CEO William Pate and sports and convention losses totaled around $640 million.

But as the year headed to a close, the silver lining was a strong pipeline of convention bookings for 2021.

Experts also predict that 2021 will see strong recovery for Georgia’s tourism industry. Demand for hotel rooms in the state should return to 90% of 2019 levels, with a full recovery likely by 2023.

Atlanta’s tourist destinations, such as the Aquarium, Six Flags and its hotels are slowly but surely reopening their doors and returning to as much normality as they can. But even in the midst of the crisis, developers could see potential in Atlanta’s tourism and entertainment.

In August, the Preserve World Center for Holistic ( ) www.capitalanalyticsassociates.com

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TOURISM, ARTS & CULTURE INTERVIEW

Recovery plan Explore Georgia is laying the groundwork for tourism to rise again once the pandemic passes

Mark Jaronski Deputy Commissioner, Tourism – Explore Georgia

How has Explore Georgia worked to assist travel and tourism organizations?

As the tourism division of the Department of Economic Development for the state of Georgia, every year we distribute grants as part of our overall tourism strategy to communities across the state. They make a business case for growing tourism in their community and then we have a team evaluate those applications. We reward communities across the state with grants that will help them develop tourism products in their communities.

How is Explore Georgia planning for the industry’s recovery?

We are working to lay the foundation for recovery.

Some people are responding to the safety measures we’ve put in place, acting on their desire to venture 36 | Focus: Atlanta 2020 | ECONOMY

out from their home. We’ve found that recovery starts close to home. When people go out for lunch and go to a restaurant and have a good experience and feel they were able to do so safely, it gives them the confidence to go farther from home and take a day trip, an overnight stay, and so on. That foundation for recovery really starts with safety. We are counting on every tourism business owner and residents alike to follow the Georgia Safety Promise to implement health and safety protocols. This will play a vital role in helping us restore our nearly $70-billion tourism economy.

At Explore Georgia, we’ve developed resources to help inform and educate our partners across the state. What we find is that the destinations throughout the state are doing the same. We’re seeing airline passenger traffic returning and overall hotel occupancy has improved since hitting bottom in April. We have a long way to go to get back to those historical high numbers that tourism contributes to economic development here in the state of Georgia. Building on that foundation of safety and that genuine hospitality that the travel and tourism industry is known for is the way to do it. The convention calendar for Atlanta is very robust over the next five years and many economists believe Atlanta will rebound more quickly once a COVID vaccine is in place.

How are Atlanta’s cultural businesses leveraging technology amid the pandemic?

We find that virtual efforts are effective in keeping visitors engaged and inspired but at the same time, they are not a substitute for real travel. In the spring, when everyone was in quarantine, virtual events were highly effective in helping people remain connected and engaged with Georgia tourism. As Georgia started to open up, we saw a strong desire among visitors to return to real travel, although more than half of the typical market still is uncomfortable traveling.

TOURISM, ARTS & CULTURE OVERVIEW

The department of Parks and Recreation in Atlanta oversees and maintains over 3,364 acres of park land.

( ) Wellness and Applied Health was proposed for a site on the Dog River Reservoir just west of Atlanta. The 1,100-acre venue has the potential to add $2.7 million in annual tax revenues to the county and create 500 jobs.

Tourism initiatives Aside from CARES Act funding, the tourism industry in Atlanta was given access to other funding forms.

Explore Georgia’s Tourism Product Development team has been providing a grant since 2010, awarding more than $1.6 million to support the industry. The grant is available to around 200 communities and awards up to $5,000. And the state tourism office has always been supportive of the industry. In August 2019, the office awarded more than $64,000 in tourism product development grants to seven new and expanding projects across the state, with recipients including the Athens Music Walk of Fame, Georgia Writers Museum, Freight and Rail Brewing Company and Historic Downtown Norcross Tour Project. And to support Atlanta’s role as a competitive destination, Georgia Power donated $20,000 to the Atlanta BeltLine project, which connects 45 neighborhoods in the city to green, walkable spaces.

Hotel performance The hotel industry was one of the hardest hit during the COVID-19 pandemic. Some shut their doors in March and never reopened while others have suffered from minimal occupancy levels. The luxury Omni Hotel at CNN Center announced in October it would extend furloughs for up to another six months as the pandemic bit into its bottom line.

Although the sector in Atlanta is suffering, there are opportunities for those who can adapt. For some, this means installing high-tech touchless technologies to limit contagion and increase guest comfort, while for others, it meant finding a new profile of guests, including healthcare workers, college students and those who want to rent a room to use as office space.

The road to recovery for hotels could stretch as far as 2024, by some estimates. But Atlanta developers are seizing the chance to make the best of the downtime with new developments. Cambria Hotels by Choice Hotels is constructing four new facilities, one of which is in Downtown Atlanta. And the massive Six West development in College Park is set to be a talking point for years to come. The first phase, set for completion in late 2025 or early 2026, will bring online one of six planned hotels across the $1.5 billion, 311-acre space. www.capitalanalyticsassociates.com

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Fabrizio Calvo General Manager W Atlanta-Midtown

What recent landmarks has W Atlanta-Midtown achieved?

We successfully completed the renovation of our hotel at the beginning of 2019. As one of the largest W Hotels in the world, this was our first major overhaul since opening in Atlanta in 2009. The hotel has been carefully curated to transport visitors to another space.

Each room features art pieces that tell a story and treats guest to an unexpected experience inviting them to use their imagination.

What will be the short-term impact of the virus on local hotels?

The impact of COVID-19 on local hotels is devastating, representing a significant portion of the virus-generated unemployment, furloughs and extended leaves. For our industry, there is still a long way to go as far as recovery. As hotels come back to business, they will be competing for a diminished piece of the pie, which will make it difficult in the short term. I also believe we will have an opportunity to re-learn the way we approach hospitality and the way we approach our business.

We are going to have to look at our old practices and adapt them to our current reality. In addition, we are having to reinvent ourselves as we are in the business of connecting people, but now without the human touch component. It is a totally different game.

What is your outlook for Atlanta’s hotel scene as it reopens?

The end of 2020 will remain difficult as mass gatherings are not the order of the day. It is becoming clear that travelers are more comfortable going to places where the virus is under control. Our outlook is improving as restrictions continue to lift but our recovery will depend on people’s comfort levels with getting back to normal activities. With that said, we anticipate more positive signs for 1Q21 and 2Q21. Once we have a treatment or a vaccine, I expect a quick recovery because people love to travel.

38 | Focus: Atlanta 2020 | ECONOMY

The Atlanta Falcons’ stadium revenue totaled $204 million in 2018, according to Forbes Sports With five professional teams, including the NFL´s Atlanta Falcons, baseball’s Braves and the Atlanta United FC soccer club, sports is another major element in the Atlanta tourism landscape but here too, COVID reared its ugly head in 2020. Major sports leagues across the country shut down at the outset of the pandemic, with most resuming play inside city “bubbles” and without spectators.

By early November play had resumed across the board, with baseball’s World Series and the NHL’s Stanley Cup awarded to wrap up truncated seasons, both without fans in attendance. In Atlanta, the Falcons opened their football season in an empty stadium on Sept. 13. The hit on revenues will likely be steep. According to Forbes, the NFL stood to lose $5.5 billion in stadium revenue, or 38% of the league’s total revenue. The Falcons stadium revenue accounted for $204 million of the team’s $458 million in total revenue in 2018.

Looking ahead Like many other sectors post-pandemic, Atlanta’s tourism and culture industry will continue to face constant challenges as the future becomes clearer.

In 2020, the new challenge of mask culture and its acceptance has been felt, including among travelers arriving to Atlanta via the world’s busiest airport, Hartsfield-Jackson Atlanta International Airport. As an example, Delta Airlines, whose hub is in Atlanta, faced some significant pushback as a result of the new normality. Although a measure typically reserved for suspected terrorists, Delta has this year added 460 people to its no-fly list for refusal to comply with mask rules. The requirement to socially distance will undoubtedly prove a hurdle for entertainment, culture, arts and even aviation as business models are turned on their heads. Innovation and adaptation will be the keys to business survival in the medium and long terms.

TOURISM, ARTS & CULTURE INTERVIEW

Learning Atlanta The city’s first Waldorf Astoria hotel adapts to the local market during a key transition period

Stephane Mercier General Manager – Waldorf Astoria Atlanta Buckhead Prior to the start of the COVID-19 pandemic, how was Waldorf Astoria performing in Atlanta?

Waldorf Astoria Atlanta Buckhead joined the Waldorf Astoria Hotels and Resorts portfolio in December 2018. Much of 2019 was spent bringing the hotel up to the Waldorf Astoria brand standards and as a result, it was a key transition period for our hotel and team members.

Throughout our transition and as the first Waldorf Astoria hotel in Atlanta, we’ve taken this time to learn and adapt to our guests and locals in Atlanta. Given our location in Buckhead, our spa has been quite popular with locals and we’ve adapted our marketing and sales strategy to cater to the demands of the market.

What innovations or opportunities have stemmed from the pandemic?

I think the sanitization of the rooms is something that has evolved since the pandemic. We had high standards for cleanliness before and that process was already strong. However, that is being reinforced even more now.

In addition to the rollout of Hilton CleanStay, we’ve also launched an extension of this program for meetings and events called Hilton EventReady with CleanStay, a global, industry-leading cleanliness and customer service program. Designed to address safe group travel practices and evolve the event experience, EventReady includes cleanliness protocols, book-tobilling, flexibility and safe and socially responsible solutions.

As part of this program, we also introduced the Hilton EventReady Playbook, which delivers expert guidance and curated resources for solutions, such as Hybrid Meetings that seamlessly combine on-site attendees with those in remote locations, Room Sets and Creative Networking.

What is your outlook for the hospitality industry for the remainder of the year and 2021?

While we can’t predict long-term outcomes from this crisis, we are confident that our world and our industry will recover. Our team is resilient, and we fully expect that our customers will be eager to travel, experience the world and connect with each other as soon as it is safe.

When that recovery comes, we will continue to spread the light and warmth of hospitality to a world that will need it more than ever. Our top priority for Waldorf Astoria is to provide a safe environment for our guests and team members. Offering a secure experience is going to be part of the process in finding our way back to normalcy. www.capitalanalyticsassociates.com

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®

oundtable:

Tourism in Atlanta From sports to hotels, tourism was among the sectors that took the biggest hit in 2020. Local leaders look back, and forward.

Lisa Anders

Executive Director Explore Gwinnett Tourism + Film Office

What is the state of Gwinnett’s film industry?

The film industry was immediately impacted by the pandemic. We started to see a resurgence of filming and locations in 3Q20 after it started to pick up at the end of Q2. Gwinnett County is a sizable filming hub for Georgia, with two major TV and film production studios located here. Stranger Things’ Starcourt Mall, prominently featured in the show’s third season, is actually a Gwinnett County mall. In the last two weeks of June 2020 alone, we have worked with eight productions, which is eight more productions than we worked on throughout 2Q20.

How might the digital disruption bolster the tourism and restaurant industry?

Our partners are incorporating touchless modalities for restaurants, hotels and attractions, which builds customer confidence, which is vital. We’re seeing more virtual or hybrid trade shows, streaming conferences, but there is still a desire and need for face to face meetings, networking and partnerships.

What is your outlook for 2021?

We hope to continue our incremental growth. We are still leading metro Atlanta in occupancy even during this time, so we anticipate we are going to recover at a faster pace than the rest of the area. Already, we are above 50% occupancy. Our primary goal is to continue our improvement and to build both consumer and client confidence in visitation. We are finalizing a new program, Gather Safely in Gwinnett, which emphasizes our hotels Clean Stay programs, as well as event facilities, Convention Center and baseball stadium.

40 | Focus: Atlanta 2020 | ECONOMY

Steve Cannon CEO AMB Sports and Entertainment

How has the city welcomed Atlanta United?

Soccer coming to Atlanta has been an amazing journey.

One of the most important success factors for Atlanta United was hiring a front office team years in advance of launch to build a strategy and to identify the audience, which was done beautifully. ESPN says that Atlanta United is one of the best new sports franchises launched in the history of sports in the United States. We have broken all kinds of Major League Soccer attendance records: more than 71,000 people for a single game, average soccer attendance of 55,000 when the average is 20,000.

What steps are you taking to rekindle consumer confidence in the pandemic’s wake?

We feel great about launching our cashless model at Mercedes-Benz Stadium in March 2019, being the first professional sports stadium to do so in the country.

Our core value is to innovate continuously. That is what drove us to push hard for the cashless option as it was rooted in improving fan experience. Then COVID-19 comes along and touchless becomes the norm.

What is your general outlook for 2021?

Our industry’s recovery stems from bringing people together in such a way that they feel safe and secure.

We have implemented a bevy of safety protocols. Our outlook is that the pandemic is going to have a sizable impact on consumer psychology. We are hopeful that innovation in the medical community will deliver on its promise of a safe and effective vaccine. We will be ready when the demand makes a comeback.

TOURISM, ARTS & CULTURE ROUNDTABLE

Mercedes Miller

Executive Director Georgia International Convention Center

What impact will the launch of the Gateway Center Arena have on the area?

This is a new arena, we are working out all the kinks, we are still advertising and trying to get in the media as much as possible because right now, the important thing is to stay prominent, to stay relevant, to let people know that we are still here. The new arena means a lot to the south side. I grew up in the south side of Atlanta and most entertainment was in the north of the city or Downtown.

We are the only arena on the south side. It makes us very prevalent in this area and it exposes kids on this side of town to basketball, to arena football, to concerts. We’ve also done virtual gaming. It exposes kids to things in their neighborhood and that’s important to me.

What adjustments have you had to make to planned events?

Every time there’s a major event that happens in the country, you have to rethink things. Instead of having concerts on the inside of the arena, we held concerts in the parking lot. They are called social distance concerts, or drive-up concerts. People drive up, they leave a space between them, they can put up their chairs outside their cars, bring their own food and still have the value of being at a concert. That’s worked well for us. With the kids going back to basketball, we put them in the exhibit halls so we could give them double the amount of space.

Staying relevant also means doing more community events. That might not necessarily bring you financing but they show the community that you are a part of it. It can’t just be about making money.

Ramon Reyes

General Manager Omni Hotels & Resorts

How would you characterize Omni Hotels’ success in the Atlanta market?

We have been extremely fortunate. We opened the hotel in 2017, coming into a market when the Braves already had a year-long presence in Cobb County. Cobb County was fortunate to already be called home for many corporate headquarter offices. Hotels benefited as the corporate business was able to flow in through the hotels. When the Braves moved their operation here together with their stadium, it triggered a new dynamic.

It created a recipe where you could sprinkle in a bit of group business, alongside the corporate business and baseball fans to create a very successful market. Since we opened our doors, we have enjoyed significant occupancy amid sold-out baseball games. We can garner considerable rates and premiums from our product, mainly because of our location but also due to the product and brand we showcase.

What is your vision for 2021?

The keyword is fluidity. Things are changing by the day.

As an industry, it’s hard to know what next month holds.

Looking ahead, we are all optimistic. Our industry is resilient and will bounce back. It is hard to rely on historical statistics, as we traditionally do. We would normally base our future on how we performed in 2020 and what the trends were the year prior. Our brand and organization are taking the approach of looking only three months ahead at a time and planning for those three months.

Our priority is to ensure we have a concise plan that takes our guests, the current climate and our associates into account. www.capitalanalyticsassociates.com

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Clayton County: With the world’s busiest airport, a diversifying economy and accessible land prices, Clayton County is positioning itself to take advantage of its natural and strategic strengths to drive full-speed into the future, a future that is reflected in its new slogan: CC: Clayton Connected.

www.capitalanalyticsassociates.com

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Connected: Rebranded Clayton County is making a big push to raise its profile With the world’s busiest airport on its doorstep and a designated Foreign Trade Zone, Clayton County is ready to climb the economic ladder. It is rebranding and investing to solidify its position as one of Atlanta’s best assets, offering growth for businesses and an improved quality of life for its residents.

Established in 1858 and named in honor of Augustin Smith Clayton, Clayton County is the fifth-most populous county in the state of Georgia, with 292,256 residents as of July 2019. It has seven municipalities: College Park, Forest Park, Lake City, Lovejoy, Morrow, Riverdale and Jonesboro – the county seat. The county is a green one, with 32 parks and a variety of recreational facilities. The Parks and Recreation Department is home to over 896 acres of parkland and amenities.

Located just to the south of Downtown Atlanta, Clayton County is home to Hartsfield-Jackson Atlanta International Airport, the busiest airport in the world and also the state’s leading employer, responsible for around 60,000 jobs. One of the county’s largest single employers is Gate Gourmet, the airline catering company, which employs 1,200 people countywide. More than 50 aviation and aerospace 44 | Focus: Atlanta 2020 | CLAYTON COUNTY

firms operate in Clayton County, including Aircraft Service International Group (ASIG) in the Mountain View area. The public sector is the county’s biggest single employer though, with 6,775 people working for the Clayton County Public Schools system and 2,604 employed through the Clayton County Board of Commissioners.

Clayton County is also home to the Atlanta Tradeport Foreign Trade Zone, which offers tax incentives, lower duties, reduced processing fees and quicker movement of goods from the port to attract business to the county.

The region also allocated a federal Opportunity Zone to the area east of Hartsfield-Jackson under President Donald Trump’s 2017 Tax Cuts and Jobs Act. Under the program, if a company locates to the area and creates two or more jobs, it can claim Georgia’s maximum of $3,500 per post in job tax credits.

Rebranding Historians believe that, prior to Anglo-American settlers, most of the county’s land was used by Native American tribes as hunting grounds. What is now Clayton County was once occupied by Muskogean farmers, particularly along the Flint River. ( )

CLAYTON COUNTY INTERVIEW

Growing strong As the population expands, Clayton County is laying the foundation for continuous growth

Jeffrey Turner Chairman – Clayton County Board of Commissioners How is Clayton County positioned for growth?

Clayton County is projecting a growth of 250,000 new residents in the next 30 years. We are the thirdsmallest but fifth-most-populated county in the state.

We are small on land mass but we have buildable land and that means we have to start building up, but that comes with some restrictions because we have the world’s busiest airport in our backyard. The airport is a powerful economic generator so we have to get the maximum use out of that area. The HartsfieldJackson Atlanta International Airport has undergone a $6-billion expansion and major hotels are going up in that area. Our Mountain View area has been cleared and zoned for our land use plan. The landowners are on board with the county’s vision. In terms of where the county is going, I am very encouraged by the foundation that is being laid so far.

Which industries are key to the county’s development?

We see many industries developing in Clayton County, with the film industry being one of our most successful industries. I do not see the film credits going away anytime soon and I see the state of Georgia developing this industry even further. We have a soundstage in Clayton County and have filmed several big budget films there. We want to leverage the power of the airport and build a full-fledged studio in the county. There are so many films and TV productions happening so it makes sense to have a complete studio in the county. We want to be forward thinking when it comes to the film industry. We also need to have more airline industry businesses within the county because they provide tax revenue and good paying jobs.

How is Clayton County tapping into Opportunity Zones?

We have three Opportunity Zones within Clayton

County. We are working with our economic development department to market these zones and bring the right type of businesses to those areas. We want businesses that add value and become assets to the community.

What are Clayton County’s key objectives moving forward?

We are looking forward to continue developing the Aerotropolis and Mountain View area. There is a lot of interest in the city of Forest Park, with some planned business parks and the development of a movie studio in that area. There are also plans for a mixed-used development over 23 acres across from Clayton State University, which could be very impactful. Our goal in Clayton County is to give residents an inclusive place to live, work and play. www.capitalanalyticsassociates.com

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CLAYTON COUNTY OVERVIEW

Clayton County has a young population, with an average age of 32.4 ( ) They were skilled cotton farmers, particularly adept at shifting from subsistence farming to the production of agricultural surpluses, which were sold for cash outside the Creek Nation. The land that forms Clayton County was ceded to the United States in 1818 after the Redstick War. The population of Clayton County remains primarily nonwhite, with figures showing that 72.1% of the population is Black or African American alone, 13.3% Hispanic or Latino, and 19.6% white alone. Only 0.6% of the population is now American Indian or Alaska Native alone.

Today, the county is positioning itself as a force in the global economy. with an emphasis on logistics and distribution, health services, aviation and aerospace manufacturing, food and beverages services and manufacturing and the film industry. Its Tier 1 designation means it can provide access to local, state and federal incentives. In short, the region is primed for investment and development.

Part of the county’s strategy is a rebranding effort that began in 2017, when Clayton County launched its Strategic Plan to create new opportunities for citizens and promote economic growth. One of the six key pillars is Communication and Image, which recognizes the country’s cultural diversity and seeks to further celebrate its heritage. In September 2019, the Clayton County Board of Commissioners kicked off a branding project, working with Georgia-based 365 Degree Total Marketing agency. With input from residents, the effort culminated in August this year with a new tagline, CC: Clayton Connected, and a fresh marketing slogan that plays on the county airport advantage: Where the World Lands and Opportunities Takes Off. “Our goal is to tell the county’s story with a focus on changing perceptions to reflect prosperity and 46 | Focus: Atlanta 2020 | CLAYTON COUNTY

growth,” said County Board of Commissioners Chief Operations Officer Detrick Stanford in a press release.

“Rebranding Clayton County will enable the county to expand services, accomplish local and global growth objectives, foster and develop new business relationships. Ultimately, our goal is to position Clayton County to be more competitive with surrounding counties and to showcase all that Clayton has to offer.”

Economy Clayton County’s population is young, at a median of 32.4 years. The county employs 136,000 people and the largest industry is transportation and logistics, with 22,757 jobs in this sector, followed by healthcare and social assistance with 17,861 jobs and retail trade with 16,445 jobs. Median household income is $46,646, which is lower than the national average of $61,937, but is up on the $45,172 recorded in 2017. Men earn approximately 1.38 times more than women in the state of Georgia but the Gini coefficient is still lower than the national average at 0.475.

The county also has a significant proportion of female and minority-owned businesses, counting 15,117 female-owned businesses versus 12,574 maleowned businesses and 24,194 minority-owned firms compared with just 4,477 nonminority-owned firms in 2012. The highest paying industries in Clayton County by median earnings are public administration, which pays $55,618; professional, scientific and technical services at $51,796; and educational services at $40,984. The highest paid jobs by median earnings are life, physical and social science occupations at $60,716; business and financial operations occupations with $52,378; and computer and mathematical occupations at $49,397. The unemployment rate in March 2020 stood at 4.2%. That was before the COVID-19 pandemic ravaged the local and nationwide economy, sending the jobless rate to double digits by September 2020.

Among the county’s advantages is the accessibility of homes. The county’s median property value was $147,196 as of October 2020, considerably less than the national average of $229,700, but an increase of 10.4% since October 2019. The rate of home ownership is 52.2%, which is lower than the national average of 63.9%. The county also has a lower level of home ownership than neighboring Fulton, DeKalb, Spalding, Henry and Fayette counties. Commute times are an average of 31.8 minutes, with 4.7% of the workforce reporting “super commutes” of 90 minutes or more.

The Clayton County Office of Economic Development is working on new ways to stimulate the local economy and attract new companies to the area. The agency ( )

CLAYTON COUNTY INTERVIEW

Highly ranked City of Lovejoy is in a growth spurt and attracting new commercial activity

Bobby Cartwright Mayor – City of Lovejoy What drivers have fueled Lovejoy’s growth?

We’ve built more single-family homes than any individual city and most counties in the surrounding area. Lovejoy, according to some statistics, is ranked ninth in the state and third in the region for growth.

That has to do with a lot of things, such as leadership, the work of the police department regarding crime and the rapid construction of new homes.

We are growing very fast, mainly as a residential community, and we’ve had an Alabama retail group recently set up a multiyear contract to assist in growing retail in the area, and they are doing well. Our retail success is not as big yet, in terms of big box stores and the like, but we have added new restaurants.

We are adding a lot of entry-level jobs a year, which is very important. When it comes to entry-level jobs, everybody talks about the related wage of around $12 to $15 and hour but they miss the main point, which is where are the young people going to work without these jobs? These are the young folks who don’t get the opportunity to go to college or are in nearby colleges.

They need entry-level jobs and those are in McDonald’s, Burger King and small businesses where people learn the soft skills they need to be successful in life and grow their careers. We are doing well with that.

What is the city doing to attract and create new businesses to spur development?

If you build a community, there will be many small businesses that open and thrive, like your mom and pop restaurants. I am in the government business of people, not so much chasing the retail job market. Our partnership with Retail Strategies, the progressive thinking of our council and other board members are driving factors in growing development in the city.

Holding on to some of our core values, listening and being in tune with the needs of the community gives

us a better view of what the city’s overall needs are.

So when opportunities arise in the right areas, we are ready to move forward.

How is the city positioning itself to support residents and businesses?

In the areas under our control, which are public safety and those types of things, we are ahead of the curve, because there are a lot of areas where we are constantly looking for innovative ways to promote growth and development citywide. We recently added two new gated communities to the city of Lovejoy. We are also in the permitting process for a 72-unit, bungalow-style senior housing complex that took five years and a concerted effort between private entities, the city, and other government agencies to put together. www.capitalanalyticsassociates.com

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Joy Day Mayor City of Jonesboro

What separates your county from others in the region?

One of our strengths is our teamwork. There is no push-pull dynamic between the cities here in Clayton County. When negotiations are needed, we all converge toward one goal: help Clayton County prosper. As long as we have the same goals, any city prospering helps Jonesboro. That is our point of view.

What have been the key developments for the city of Jonesboro in the past year?

We broke ground on the Broad Street Project in Downtown, which is a public-private partnership and will include a restaurant in our old fire station, underground utilities and a large glass building called the Meeting Place perpendicular to the old fire station.

We are working together with our property owners Downtown to enhance the original Main Street in Jonesboro. Most of those buildings have basements, dating back to Civil War times. We are also continuing our participation in the Livable Centers Initiative (LCI) through the Atlanta Regional Commission. We are planning a new city center near Lee Street Park, with close to 90% of the architectural plans completed. We are waiting to finish that portion of the project to launch construction toward 2021.

How will COVID-19 impact the city’s budget?

We are having ongoing discussions over how to restructure our 2020 budget to lessen to the extent possible the impact of the virus outbreak for 2021. Our council will most likely cut the amount of travel for next year. Anything that can be spared as superfluous spending will be cut out. We have not had to furlough any employees as it is one of our top priorities to remain with our workforce in its entirety, along with keeping all of our quality of life items in the budget. The city of Jonesboro has managed to accumulate a fair amount of reserve funds. We are reluctant to tap into those resources but if need be, they can become available.

48 | Focus: Atlanta 2020 | CLAYTON COUNTY

( ) wants to capitalize on Clayton County’s privileged position as a logistics hub, reflected also in the county’s new branding. As well as airport and rail access, the county offers direct access to Georgia’s ports via rail and has 19 exits on four major interstate highways, making it accessible to logistics and distribution.

Additionally, the agency promotes a timely permitting system as well as the huge supply of human capital, with 15 or so major universities within close proximity.

With the arrival of the COVID-19 pandemic, Clayton County also recognized the need to assist local businesses. The county has been working to aid the local business community and residents by means of information, free COVID-19 testing and relief grants. One such example was in October 2020 when the commissioners allocated $1 million in grants for disbursement by the Development Authority of Clayton County to small businesses and nonprofits severely affected by the pandemic. The disbursements break down to $800,000 in CARES Act Funds toward eligible businesses with the remaining $200,000 to be allocated for nonprofit organizations.

Capital improvements In 1985, the Georgia legislature gave counties the option to implement a penny tax to fund public works and infrastructure projects that would otherwise be taken from property taxes. The Clayton County Special Purpose Local Option Sales Tax Program, commonly known as SPLOST, helps to drive the county forward by funding capital improvements within infrastructure, public safety, buildings, technology and overall quality of life.

Clayton County’s most recent SPLOST was for $280 million in education spending, which was overwhelmingly approved by voters in March 2019.

The funds will be used for three new schools, and to replace old buses, update HVAC systems and set aside money for an early learning system to serve Clayton preschoolers who are not in pre-K programs.

A career and college-prep academy will be built as will an arena large enough to host all the school system’s graduations. Over $44 million was spent on SPLOST projects in 2019. In 2020, 11 projects were expected to be completed related to police services, jails, parks and a recreation and senior center, although the pandemic has created short-term uncertainty around the plans.

One notable facility slated to open in 2020 is the new Clayton County Information Technology & Training Center, which is in the final construction stages.

With an estimated $6 million budget, the center was designed by architectural firm Gardner Spencer

CLAYTON COUNTY OVERVIEW

Smith Tench & Jarbeau and is being built by Lichty Commercial Construction. Previously, the county’s key IT infrastructure was housed in a more than 40-year-old building that can no longer meet capacity demands. The new IT center will house a secure data center, as well as a training center for county employees.

Another ongoing SPLOST initiative is the Small Business Incubator, which will help to grow small businesses in Clayton County. Projected to cost $4 million, the project is in the conceptual phase and aims to combine academia and business by installing office space adjacent to Clayton State University, bringing together the county’s strongest resources in one place.

Healthcare After transportation and warehousing, healthcare and social assistance is Clayton County’s biggest employer, providing 17,861 jobs. The county is home to awardwinning hospitals, including the Southern Regional Medical Center, a 331-bed full-service hospital owned

by Prime Healthcare Services. A leader in heart and vascular, acute care for the elderly, wound care and women’s healthcare, the hospital became one of only 225 nationwide in 2019 to be awarded the American College of Cardiology’s NCDR Chest Pain - MI Registry Platinum Performance Achievement Award. The hospital employs more than 350 physicians and clinicians and has a total annual payroll of $88 million.

Pharmaceutical giant Sanofi-Aventis chose Forest Park on the northernmost tip of Clayton County to locate its 216,000-square-foot distribution center because of its position as a logistics hub right on the I-285 and a nine-minute drive to Hartsfield-Jackson.

The facility is ideally located just outside the medical hub of Atlanta, where nationally-ranked institutions such as Emory University Hospital are located.

Manufacturing Land prices in Clayton County are lower than in the metropolitan areas. According to Newmark Knight Frank, the cost of industrial real estate in Atlanta is increasing and becoming scarcer. The year 2017 closed with a 7.6% vacancy rate and the average warehouse asking rate was $4.18 per square foot, up 8.6 percent from 2016 and 13.6 percent over the previous 10 years.

Conversely, Clayton County is just a 20-minute drive from Downtown Atlanta up the I-75 and land prices are much more affordable, promoting the use of the space for industrial purposes.

According to Invest Clayton, total employment in the food and beverage sector is in excess of 12,000.

The Atlanta Police Foundation is responsible for creating initiatives designed to provide resources to underserved neighborhoods.

The 150-acre Atlanta State Farmers Market in Forest Park alone employs more than 3,700 people with an estimated annual payroll of $75 million. Workers in manufacturing average $25.33 an hour in Georgia, according to the Bureau of Labor Statistics, more than twice the salary of leisure and hospitality.

Another manufacturing facility situated in Forest Park is the Clorox Company, which employs 100 people at its 258,000-square-foot facility. Now more than ever, amid the coronavirus outbreak, demand for these cleaning products is unprecedented and it is important that they reach the client on time, which is why Clayton County offers a unique advantage.

Nearly 40,000 employees work in Supply Chain and Logistics, representing 35% of all jobs in Clayton County and global supply chain conglomerate Shipper’s Warehouse is located in a 500,000-squarefoot complex in Jonesboro.

Real estate In March 2020, Clayton County was ranked fifth in the country by ATTOM Data Solutions in terms of counties with the highest potential annual gross rental yields for 2020. Although across most of the country rents are failing to rise as fast as buying prices for single-family properties, Clayton County seems to be shrugging off www.capitalanalyticsassociates.com

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CLAYTON COUNTY OVERVIEW

Clayton County was ranked best in the country for buying a home in 2019 this concern. Investors can earn up to 15.1% in gross annual rental yields, the study said. This also accounts for Clayton County’s fifth-place position nationally in the same study for highest home-flipping rates. Data showed that home flips in Clayton County accounted for 12.3% of total home sales. Atlanta registered the third-largest home-flipping rate across metro areas, up 39.1% on the year.

According to Realtor.com, in 2019, Clayton County was the best in the country to buy a home due to its accessible house prices. While the county has seen strong house price growth since the last recession, the growth has not outpaced earnings potential. And because Clayton County’s real estate market is so affordable as well as offering proximity to Atlanta’s metro area, there is an influx of younger buyers. Not only this, but Atlanta’s Southside communities are beginning to offer more amenities – essential for attracting the millennial crowd.

Pinewood Forest is a 234-acre minicity located just south of Clayton County in Fayetteville, with parks, walking trails, hotels, offices, restaurants and bars. It has 1,300 residences equipped with Savannah-style row homes. Developers such as D.R. Horton, Century Communities, The Knight Group, Kerley Family Homes and Silverstone Communities are snapping up permits and constructing new developments to meet demand. But already, demand is outpacing supply, and right now in Clayton County, there is only a 1.9-month supply of inventory compared with the standard six months.

Transportation As the county positions itself for greater growth and dynamism, local officials are trying to change the way the public thinks about transport with the Metropolitan Atlanta Rapid Transit Authority 50 | Focus: Atlanta 2020 | CLAYTON COUNTY

(MARTA) extension funded by the SPLOST penny tax.

Atlanta’s traffic jams cost the average driver $1,500 a year in lost time, according to a study by INRIX. The resulting congestion impacts negatively on Clayton County’s biggest sector: warehousing and distribution.

MARTA’s route already spans to the airport but an extension would allow Clayton County users to access Downtown Atlanta quickly and efficiently without using their cars.

In 2019, the Atlanta Regional Commission (ARC)’s $173-billion long-range regional transportation plan included a proposal for a commuter rail line to Clayton County and several bus rapid transit lines by 2050.

According to real estate firm JLL, this will increase investment in the county as developers are increasingly drawn to parts of the city where heavy- and light-rail projects are underway or in the pipeline.

Infrastructure The Atlanta metro area has the type of infrastructure that is envied nationwide. It is home to the world’s busiest passenger airport, and a major global air cargo center, and it is 250 direct miles to the fastestgrowing container port in the country, the Port of Savannah. There are also 15 interstate exits on four major U.S. interstates. But to serve its residents, and accommodate the influx in visitors and newcomers, the county authorities need to keep infrastructure and utilities up to date.

The Clayton County Water Authority has five raw water reservoirs. It can produce up to 42 million gallons of potable water and treat up to 38.4 million gallons of wastewater every day. The authority maintains approximately 1,500 miles of water distribution pipes, 1,400 miles of sewer conveyance pipes and stormwater infrastructure throughout the county and its cities.

Georgia Power provides electricity while Atlanta Gas Light produces the county’s natural gas. The county also has an extensive fiber network provided by AT&T. Education Clayton County’s public K-12 system has 70 schools serving more than 50,000 students and also serves as the county’s second-largest single employer. Not only do the county’s schools provide education in disciplines such as STEM, they also offer vocational training in construction, culinary arts and public safety, as well as offering an acclaimed performing arts center. Two of the schools in Clayton County’s public system – Elite Scholars Academy School and Martha Ellen Stilwell School for the Performing Arts – rank within the Top 25 in the state. The county also has ( )

Market voices: COVID-19

Bianca Motley Broom

Mayor City of College Park

By and large, people have embraced staying home because they understand the importance of doing their part to keep the community safe. It is certainly a challenge from a financial perspective, largely because of the uncertainty. We are a tourism and hospitality hub, so we have been disproportionately affected by the pandemic. But we are seeing a lot of optimism among our hospitality professionals, which signals brighter days on the horizon. The reopening of the economy will be carried out cautiously. I think everyone has a certain level of unease, which is understandable, but I am hopeful that the doctors and scientists working vigilantly to keep us safe will come up with solutions sooner rather than later.

Until now, we did not take advantage of technology. We are now making sure that every department is operating to its full extent, being able to have documents and payments submitted electronically. This is also making people ensure they have proper insurance in place and backup measures in the event they have to close again to avoid financial strains. Teleconferencing is the new normal for conducting meetings and exploring which employees can work from home and making sure they are equipped to do that is one of the best options we can develop to balance employee retention, maintaining city services and safety. I am pleased that the Forest Park Development Authority is seeking to offer grants to small businesses adversely affected by this pandemic.

Valencia Williamson

President & CEO Clayton County Chamber of Commerce

Angelyne Butler Mayor City of Forest Park

Initially, companies struggled to restructure their business operations in a remote working environment, find appropriate PPE, work around supply chain disruptions, and establish guidelines to protect health and safety of employees, but I do believe our business community has slowly adapted to this new normal and is now finding new and innovative ways to conduct business. Conversely, some industries have benefited during this pandemic and continue to add jobs.

For example, the warehousing, distribution and logistics sectors account for a large segment of our marketplace and because there’s now a higher demand for groceries, medical supplies and other essentials, this industry has increased its output because fewer people are purchasing these goods in person. Instead, they are now ordering and purchasing online.

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CLAYTON COUNTY OVERVIEW

Tamara Patridge Executive Director – Clayton County Convention & Visitors Bureau

As home to Hartsfield-Jackson Atlanta International Airport, Clayton County inherently benefits from travelers’ activities in and around Metro Atlanta. Travelers experiencing layovers have been guests to both our Visitors Center and Road to Tara Museum, as well as clients of many of our hotels. With the intersection of three major interstates in Clayton County, the leisure traveler driving along any of these routes has entertainment options within Clayton County whether Atlanta is their final destination or they are simply passing through.

( ) prestigious higher education institutions, including Clayton State University, the region’s largest higher education and career resource, and Atlanta Tech, which serves the greater metro Atlanta region.

Arts and Culture Arts is part of the training for Clayton County Schools students with the Clayton County Schools Performing Arts Center, a technologically advanced facility seating 1,800. The center hosts professional, community and student productions in music, dance and drama. In addition, Spivey Hall is located on the campus of Clayton State University (CSU). The 400-seat recital hall attracts some of the world’s most prestigious performers and has a year-round schedule of classical, world and jazz instrumental and vocal performances. It is regarded as the best music performance facility in the Southeast.

Film Any mention of Atlanta is not complete without a nod to the region’s flourishing film industry. Clayton County offers a range of auxiliary services associated with the industry, including property scouts for location managers. Film Clayton, located approximately 15 minutes south of Downtown Atlanta, provides location scouting, permitting, and pre- and post-production support to filmmakers for features and television productions. The Atlanta metro area can offer a variety of backdrops for any production, including man-made beaches, dense woods, parks, vacant retail space, filmfriendly hospitals, vacant prisons and sound stages.

In 2019, Clayton was featured in 52 film projects and collected a record $705,780 in location fees from five locations: Southern Regional Medical Center, the Georgia Archives and government-owned properties in

Forest Park, Morrow and Clayton County, the Clayton County Film Office reported. One notable example is the box office hit “Bad Boys for Life” starring Will Smith, which used The Venue in Forest Park as the setting for a Miami nightclub.

Looking ahead The economy in Clayton County is diversified, and it is well-positioned for the future. Although the outbreak of COVID-19 cast a shadow over economic growth locally and worldwide, it also offered an opportunity for the county to demonstrate its resilience and strength, particularly in healthcare, which is among the county’s two biggest strengths along with logistics.

These are also among the most essential services globally in the wake of COVID-19. Although the county’s aviation industry has been hit hard by the outbreak, the county’s work to diversify its industries also is paying off in the face of the global crisis.

The county has adopted a long-term outlook, which can be seen through successful programs such as SPLOST that proactively address infrastructure issues.

Early investments such as upgrading police precincts, improving technology and improving roads have given the county an advantage in not only responding to the COVID-19 pandemic, but also positions the county’s economy to rebound strongly in 2021.

Capital Analytics would like to thank Clayton County for its contributions in compiling this chapter.

To learn more, visit its website at: www.claytoncountyga.gov

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Professional Services: 2020 has been a challenging year for almost every industry but, with the exception of healthcare, none has been more exposed to the true impacts of the COVID-19 pandemic than the professional services industry. As people sought out legal and financial advice, lawyers, accountants and consultants in the sector have been busier than ever.

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On the frontline: Professional services proved a lifeline for many businesses and individuals during the pandemic As the COVID-19 pandemic surged across the country in 2020, those in the professional services, in particular accountants and lawyers, found themselves on the frontlines from a business perspective. Suddenly, small businesses and individuals, and also larger companies, had to navigate a new landscape that included federal stimulus loans and grants.

Faced with the real possibility of bankruptcy or payment defaults, businesses and individuals turned to their financial advisers for guidance. In turn, professional services firms needed to quickly get up to speed even as the landscape shifted constantly, with unprecedented technology adoption a key part of their success.

According to the Bureau of Labor Statistics, professional services nationally is a supersector. It is one of the few industries that has remained relatively recession-proof as work has been able to move remotely and carry on as normal. The sector has been growing steadily in terms of its number of employees on a national level, entering 2020 with more than 21.5 million jobs. The sector ended September providing an estimated 20.1 million posts.

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Sector performance One of the biggest stories of the year was the hasty rollout of the Paycheck Protection Program (PPP) to prevent a wave of unemployment and bankruptcies as businesses were forcefully closed by the pandemic.

Professional services were on the frontlines of the application process, coming to grips with new government guidelines at times with as little as 48 hours’ notice before their rollout. It was no wonder that individuals and small businesses looked to their legal representatives or accountants to interpret the new rules. Perhaps the biggest focus for the professional services industries was finding a way to support the other sectors that were upended by the pandemic. “The government clearly had to take action because unemployment was rising astronomically. The stimulus package and CARES Act have helped with basic things like allowing people to pay rent and survive until the virus is under control and people can re-enter the workforce. From an advisory perspective, we know that job uncertainty is high right now so we are erring on the side of caution. We are encouraging our clients to use the savings that they are making on things like travel, ( )

PROFESSIONAL SERVICES INTERVIEW

Proper planning Cash flow is the key to continuing the positive impact from tax cuts, and liquidity planning is crucial

Corky Dawes CEO – Peachtree Planning Corp How would you characterize Peachtree Planning’s operational success between 2019 and early 2020?

We ended 2019 ahead of 2018 as we met our objectives.

We grew as a firm in virtually every aspect. We had growth in number of associates and growth in clientele. We added a couple of things to our platform that, technology-wise, are enabling us to provide some services that in the past were not there or were much more mechanical. It boils down to improving our fundamentals year-on-year. 2020 is poised to be better than 2019 even though we went through some interesting times.

How do you see tax breaks continuing to have a positive impact throughout the pandemic?

The Tax Act had a tremendous impact when it was passed. The state of business today is similar to what it was in the past. The most important factor for business owners to keep it going is cash flow. That remains consistent. The interesting development at this point is planning for proper liquidity certainty, whether on the business or the personal side. The COVID-19 issue has raised a number of challenges for people. It is almost contradictory because we have the best economy and the lowest unemployment we have had in the last 50 years, and yet people are dealing with these liquidity issues on both fronts. Since March 2020, people have become much more aware of their health and the current state of their financial affairs.

How has insurance issuance evolved since the COVID-19 outbreak?

There is a much stronger realization of people’s own mortality, the importance of their good health. It’s spread across the board. Some of the insurance carriers have slowed down tremendously and are unwilling to take on additional risk. Other carriers have adapted

well and are making things available to still do good underwriting of their risk in such a way that we can work with them and accommodate various factors. It is not a matter of fewer requirements; rather, it is about different ways of getting these requirements satisfied.

It is changing how companies underwrite and look at risk in a positive way.

What is your outlook toward 2021?

Given the opportunity, businesses will come back just fine. The issue today is not so much the virus as it is the social unrest. That is going to have a negative effect on certain businesses according to locale, as certain areas will be more affected than others. In major metro areas, it will definitely have an impact on how fast businesses rebound and start thriving again. www.capitalanalyticsassociates.com

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PROFESSIONAL SERVICES OVERVIEW

Lawyers in Atlanta rank 12th in the United States for average salary Caption in the legal sector.

( ) leisure and entertainment to pay off their debts.

This is the time to secure financial footing because for every month that the coronavirus lasts and unemployment remains high, it further damages the economy,” Ted Jenkin, CEO of oXYGen Financial, told Focus: Atlanta.

The financial services industry was in a unique position of being on the frontlines of the payment system while many were also struggling. A second allocation of $310 billion in PPP funding was announced in April, as well as $50 billion in Economic Injury Disaster Loan and $10 billion in emergency grants. Banks were forced to evaluate many established systems that were thought to be stringent and robust after the Great Recession of 2008, including credit risk capabilities, business and operating modeling and fraud prevention, data analytics reporting and technology platforms.

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The rollot was also done in near record time, posing problems for some and creating opportunities for others. “Under normal circumstances, administrations in the past would have tried to set up a new organization to distribute this aid, which not only would have taken six to eight months, but also showcase the same issues.

The administration took an existing administration, the SBA and basically tried to put a tsunami through a garden hose. For those companies that were able to consolidate solid liquidity, they knew this would take time to get done and were able to hold out. For those in the red, they needed it the next day. Our experience with our clientele has been that the small banks did a tremendous job in distributing these extra resources.

Overall, the SBA dealt with it on a daily basis, dealing with an unprecedented phenomenon,” said Corky Dawes, CEO of Peachtree Planning Corp.

PROFESSIONAL SERVICES OVERVIEW

provisions. Emergency funding of $50 million was awarded to the Legal Services Corporation to cover legal needs of low-income Americans impacted by COVID-19. The court systems, shuttered initially, requested over $11 million for IT needs and $7.5 million for video conferencing equipment, with an additional $500,000 available to fund staff remote working.

Some in the industry have also voiced concerns about the consequences of the fiscal stimulus going forward.

Despite the obvious need, the resulting debt could become for the economy, and potentially on pensions.

“The medium-term consequences of all this fiscal stimulus has not been discussed enough. We threw so much money at the problem throughout 2020 that for the first time the stock of national debt is projected to be larger than the GDP next year,” said Adrian Cronje, CEO and CIO of Balentine in an interview with Focus: Atlanta. “We need to continue to provide stimulus to bring relief to businesses, so that the unemployment rate comes down, while ensuring the economy recovers from COVID-19 quickly enough to service all the built-up debt. That coincides with the need to shape up to the conversation about successive cohorts of the baby boomer generation beginning to retire in earnest over the next few years. The debt devoted to Social Security, Medicare and Medicaid and how we deal with that is a profound conversation. Some combination of higher taxes, a lower U.S. dollar, higher inflation and us adjusting the grand bargain that was made with society in the 1960s with the entitlement programs has to occur for the debt trajectory to remain on a sustainable course in the coming decade. Should that fail to happen, the stage might be set for a large increase in interest rates, a sudden fall in the dollar and much more serious long-run consequences.”

Many professional services firms also required PPP funds for their own operations. Although job losses and closure of operations were not quite as catastrophic as in other sectors, some firms needed extra funding to help set up the right digital infrastructure and equip their employees with the tools needed to work effectively from home. In fact, Atlanta law firms were among those applying for PPP funding at the top level of $1 million to $10 million in an effort to make the move online and retain jobs. A total of 46 Georgia firms, 42 of which were in Atlanta, were among the 300 professional service firms that applied for $1 million or more. Atlanta firms Hall Booth Smith and Aldridge Pite each applied for $5 million to $10 million of funding to support around 500 jobs.

Nationwide, the legal industry obtained more than $2.2 trillion in CARES Act funding through several

Financial Services Atlanta is home to some of the biggest corporations in the United States, including huge financial institutions. SunTrust Bank is the 18th-largest employer in the city with Bank of America following closely behind in 23rd place. The city also hosts a range of fast-growing tax, audit and accounting firms such as RSM US, CliftonLarsonAllen, Hancock Askew & Co., AGL CPA Group and Carr, Riggs and Ingram, which provide over 500 jobs. Atlanta-based accountancy Smith & Howard was named a Top Five and Best of the Best firm in the nation by INSIDE Public Accounting in September.

The huge presence of finance companies also attracts a different animal: fintech companies. Notable names in Atlanta include Fiserv, NCR, Global Payments and Bakkt.

Finance and accounting roles are embedded ( )

PROFESSIONAL SERVICES INTERVIEW

Healthy relations Healthcare expertise and strong national relationships underpin law practice in growing sector

Brian McEvoy Atlanta Office Managing Partner & Chair of Investigation Division – Polsinelli are providing a great service for our community here in Atlanta, they are also suffering financially. We try to partner with them and provide any support we can from a legal and social perspective.

At Polsinelli, we have subject matter expertise not only in litigation, but in some of the regulatory areas that have been implicated by the unprecedented issues that hospitals are having to deal with, such as reimbursement issues. Polsinelli has developed a full-service COVID-19 Response Team where we are making those resources available not only to our healthcare clients but to business clients throughout the country.

How have you been able to leverage your healthcare law expertise with Atlanta’s growing health sector?

We really try to leverage our firm’s relationship with some of our national healthcare system clients, who also have a presence in the Southeast. That’s allowed us to build relationships with other hospitals and hospital systems in Georgia. We are very proud of our deep bench of healthcare lawyers, both from a regulatory and litigation perspective, not just in Atlanta, but nationally.

How has the healthcare practice developed under the COVID-19 pandemic?

It has been tough on all businesses but, of course, healthcare providers and hospitals have been at the tip of the spear throughout this pandemic. And while they 60 | Focus: Atlanta 2020 | PROFESSIONAL SERVICES

What other practice areas have been experiencing growth for the group, besides healthcare?

The areas where we’ve seen the biggest growth are financial services, real estate, IT, healthcare litigation, and litigation and government investigations. As healthcare grows, private payers and government payers, as well as managed care, have grown through the roof over the last five to 10 years. With that, there has been increased initiatives by the federal government in terms of fraud and abuse and fraud enforcement.

That’s been a real issue for many providers.

What kinds of opportunities does Atlanta offer for young law professionals?

I really believe, with all due respect to the other great cities in the Southeast, that Atlanta is the capital of the South. We have numerous Fortune 500 companies and some great academic institutions. It began with the 1996 Olympics when people from all over the country started migrating to Atlanta, and it really hasn’t stopped for the last 25 years.

PROFESSIONAL SERVICES OVERVIEW

There were a total of five Atlanta-based law firms that made the Am Law 100 List.

( ) throughout a business and play a crucial role in identifying threats and risk to the business. But when working from home, it’s no surprise that challenges arise from the silos that are created. But financial services firms during the pandemic were tasked with acting as the go-between for the federal government to disperse information to the public. Everything from deferred tax filing allowances to PPP loan funding fell into the lap of the financial services industry. Tax filing was deferred until July 15 by federal mandate but there are also longer-term implications of this deferral and new requirements to follow under the CARES Act. Not only this but deferral of tax payments impacts directly on the ability of state and local governments to fund important capital improvement projects.

Another sector that has entered the spotlight as people put more thought into their futures and longterm financial stability is wealth management. As part of a push in key markets, Wilmington Trust recruited two wealth managers for its Atlanta market in October as it plans to strengthen its foothold in the city. According to a Sage survey, organizations and individuals are increasingly turning to accountancy firms for strategic advisory services. To meet these needs, accounting firms are turning to new

technologies and operational efficiencies to set up the practice of the future. According to Accounting Today, the firm of the future depends on a company’s ability to adapt, identify its purpose and find opportunities for growth. “We’ve seen a shift in the industry and at our firm of moving away from a compliance mindset, which we’ve been doing for years, even more so as more artificial intelligence comes online and folks can do more complicated tax returns themselves, for example. We feel like there’s a continued move toward consultative and advisory-based value-added services,” said Russell Reece, Atlanta office managing partner at Hancock Askew & Co LLP. And for insurance companies, there is an even greater expectation of increased digitalization to make operations more efficient but insurers are struggling with technology adoption, mainly because there are so many compliance considerations. In a post-COVID world, medical underwriting is becoming much more complicated and clients are increasingly expecting ease of access through digital platforms in all aspects of their lives. Insurance companies are behind in investing in enrollment technologies while at the same time being inundated with claims that they are struggling to process. The entire insurance model www.capitalanalyticsassociates.com

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PROFESSIONAL SERVICES OVERVIEW

The Health Care, Corporate Banking, and Technology industries are three of the fastest-growing industries in Atlanta.

might need to be redefined to adapt to the re-opening of the economy and a post-pandemic world.

Legal Pre-pandemic, the legal sector employed over 1 million people across the nation with average industry growth in Georgia between 2014 and 2019 sitting at around 2%.

Initially when the COVID-19 pandemic hit, the sector was heavily impacted with the loss of around 64,000 jobs in April. But steadily, the jobs have been returning with 3,500 legal jobs added in May, 7,500 in June and 1,900 in July.

In June, Atlanta still held almost one-quarter of the nation’s 200 highest-grossing law firms. Atlanta’s Top 5 law firms alone employ 1,280 lawyers and 2,566 total employees in their Atlanta offices, with a much bigger footprint internationally. Practice areas of these firms span everything from corporate, finance, tax and real estate to litigation, technology and bankruptcy. And these firms were wading right into the frontlines of the pandemic, offering pro-bono aid to small businesses with COVID-19-related legal issues.

Law firms seemed to be one of the most capable industries to shift to a remote working scenario. King &

Spalding LLP, Atlanta’s largest law firm employing 357 attorneys and 766 Atlanta staff, was among those able to easily switch to a remote way of working in many of its practice areas, buoyed by a significant reduction in travel expenses. But some practices suffered, one being wills and trusts, which cannot legally be signed in an electronic format. Others at the beginning of the pandemic were the criminal defense and litigation practices as the courts closed down proceedings. But while most lawyers can now spend less time traveling and more time sitting at their desks, there are signs the second half of the year may be tougher. Citi Private Bank’s law-firm group found in a survey of almost 200 firms that while demand was up 2.6% in the first quarter, it fell 4.2% in the second quarter. As law firms head into the new normal, there are still question marks over how it will look. While some believe that the era of huge, multistory law firms are over in favor of home office or co-working spaces, others believe there is just no replacement for the creativity that can be found over the watercooler.

Another question surrounds the rapid adoption of digital practices, even for court proceedings. As the convenience of Zoom trials becomes evident, www.capitalanalyticsassociates.com

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Steve Lewis Chair Troutman Pepper

What does the merger between Troutman Sanders and Pepper Hamilton mean for the future of the firm?

The merger means more comprehensive service for our clients. The two firms overlapped perfectly in industry specialization: Troutman Sanders focused on electrical utilities, financial services, insurance and life sciences, while Pepper Hamilton’s footprint was centred on health sciences and private equity. The new footprint in both Atlanta and Philadelphia, in addition to 21 other cities, gives our attorneys additional bench strength to support a consistently high level of service for more matters.

How are you integrating technology into your practice?

We were early to the game in developing technology into our practices. Our subsidiary, eMerge, was developed about 10 years ago and focuses on electronic discovery. eMerge has seen an explosion of activity in the last few months since the courts have been closed. This impacts the litigation practice but eMerge has been busy with the remainder of the discovery process. Technology has become not just something that comes out on special occasions but something essential that contributes to our daily activities.

Which services have seen the most growth in the Atlanta region?

Our M&A practice has remained very strong, despite the COVID-19 pandemic. The fear was that M&A deals would die as many did during the 2007 recession.

Yet since March, several new deals have come in and have been completed. The labor and employment and bankruptcy departments have been particularly busy given recent events.

Much of our practice is either slightly ahead or slightly behind last year. The only area to slow significantly is intellectual property work.

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The average commute time for working residents of the Atlanta metro area is 35 minutes.

lawyers are asking themselves if this will be the way forward. Atlanta Legal Tech, for example, says it is “designing the new practice of law,” promoting the use of technology in the legal space as the way forward for the industry. Whatever the outcome looks like in practice, most agree that permanent change is already starting. “Just like in the Great Recession, our value-driven proposition, rates, the idea of knowing up-front costs, and the idea that our result will be tied to the clients’ results are factors that people want to buy into. I think the legal industry’s billablehour model is going to go away. The consulting and accounting industries did away with this model years ago,” said Marc Taylor, managing partner at Taylor English Duma LLP. But as the landscape changes, the simplest of things remain challenging. Summer associate programs this year looked wildly different from those of the past given that most of the associates did not meet their coworkers in person during their internships. Law firms were able to negotiate this hurdle, but the longerterm challenge remains for first-year associates, with many large firms pushing back start dates from the typical September/October to January. And even long-standing employees are struggling, with ( )

PROFESSIONAL SERVICES INTERVIEW

PPP implications Demand for tax services remains high, especially in light of the CARES Act and the PPP program

Rand Meyer Office Managing Partner – Dixon Hughes Goodman LLP How has the firm performed during 2020, given the pandemic?

Business is still very strong, particularly in certain industry practices, like technology, that were able to easily pivot. While we’ve seen a dip, particularly in some service lines, the demand for our tax services is higher than ever, not only tax compliance but tax consulting services as taxpayers are continuing to receive guidance from the Treasury on the implementation of tax reform. We also launched new services, including a workplace re-entry readiness framework and consulting around the CARES Act and some of its nuances. We also are devoting more time than normal to managing our business to make sure we are doing the right thing, so we can take care of our people and our clients. Working from home is a new challenge that our people transitioned into brilliantly.

As a business advisory company, what’s your take on the M&A activity in this environment?

What we saw with mergers and acquisitions is that the deals that were in process as COVID-19 hit did not necessarily fall through, but they did hit the pause button. No new deal activity started for probably a good four to eight weeks. I would say, since June, those deals that had hit the pause button are now moving forward, although on renegotiated terms, and we are also starting to see new deal activity. It hasn’t fully recovered yet, but with companies that have a pretty solid balance sheet and some cash on the sidelines, there’s probably going to be some really good deals down the line.

What are the implications of the CARES Act from your side of the business?

It’s really been interesting. When it was passed, the part most clients were asking about was the PPP loan

program. We worked with our clients to try and navigate the process and assist them with gathering the relevant information to apply for loans as long as they believed they qualified. Due to the tight time compression, there were a lot of questions and uncertainty even as businesses were applying for the loans. Then you saw some of the bad publicity coming out of it. Companies took the loans and got some bad press. We saw a lot of clients who were concerned about the negative press and about how they could have certainty about a need that was based upon the uncertainty of a pandemic.

Some companies that applied and were approved for such loans reconsidered and backed away. Others decided to move forward with their PPP loan and now we are helping them compile information for the forgiveness application process. www.capitalanalyticsassociates.com

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PROFESSIONAL SERVICES OVERVIEW

Sal Inserra Office Managing Partner, Atlanta, Crowe

In 2019, especially for banks, companies were looking for ways to use blockchain technology to help secure their infrastructure and transactions. Shiny objects always catch the eye, which at the moment is primarily credit, not infrastructure. Citicorp increased its digital customer base exponentially through such technologies, meaning there is an increasing number of people you can have access to through digital channels. As the numbers increase, securing those digital channels becomes increasingly critical.

It will be interesting to see what investments are made in that area. For the most part, community banks are fast followers, not integrators.

( ) some law firms raising pay for some while was Georgia’s failure to pass a sweeping tort reform laying off others. As the space becomes leaner and bill. Although there has been some progress overall more competitive, recruiters are using this to their on tort reform, Senate Bill 415, sponsored by Senate advantage to hire top legal talent. Given the quality Majority Whip Steve Gooch, would have introduced of educational institutions in the region, there is wide-ranging changes to the civil judicial system in certainly a good talent pool to choose from, said Eric the state, including landlord protections, medical Schroeder Managing Partner Bryan Cave Leighton damages and evidence that can be allowed in court Paisner LLP. “The Atlanta area law schools are fantastic cases. and have consistently offered a The last tort reform bill to top notch talent pool. The law pass in Georgia was in 2005. schools at Emory, University of Some observers said the lack Georgia and Georgia State are of sweeping tort reform hurts great providers of talent, and business attraction. “Georgia the quality of their students is ranks 11th in a nationwide list that stellar. The firm recruits from all ranks the country’s worst places over the country, but the Georgia for businesses and litigation. It schools have always been the makes businesses hesitate when bedrock for our pipeline.” He considering Georgia and other adds that diversity will be Southern states given their tortsanother key moving forward. related concerns and the value “Another real strength of Atlanta of cases here,” said Bill Johnson, is its diversity. Diversity remains managing partner at Moore an important discussion within Ingram Johnson & Steele. “In the Ben Mathis the legal sector and our firm, long term, businesses shy away Freeman Mathis & Gary, LLP and we are seeing a great focus, from establishing a presence resources and sustained action put into diversity here. It is noticeable in various counties and even initiatives. Atlanta has always been a leader in civil across Georgia.” rights, equality and social justice, and we think Added Benton J. Mathis, Jr., managing partner Atlanta will continue to be at the forefront of any at Freeman Mathis & Gary LLP: “For business discussion on these issues.” development in Georgia, the insurance area and policy limit demands are the subject of increased litigation creating extra-contractual exposure.

Regulations From a regulatory perspective, the big deal in 2020 These cases sometimes produce verdicts that are

In Georgia, there also have been several ‘nuclear’ verdicts, including a $280-million award in a death case.

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PROFESSIONAL SERVICES OVERVIEW

putting people out of business. In Georgia, there also have been several ‘nuclear’ verdicts, including a $280-million award in a death case. Awards of that size have tremendous implications for employers and insurance companies writing coverages for businesses.”

Looking ahead 2020 has been a challenging year for almost every industry but, with the exception of healthcare, none has been more exposed to the true impacts of the COVID-19 pandemic. As people seek out legal and financial advice, professional services have been busier than ever. But many of these firms have found they need to change fundamental aspects of the way they work, adopting more technology and evaluating the bases of lending criteria.

While the professional services sector enjoyed gains during the pandemic, not all areas benefited equally.

Over time, as a recovery sets in, an equilibrium is expected to return. The legal sector is a good example.

“In certain areas, things did not slow down. For example, our employment, advice and compliance areas have seen significant demand. The amount of litigation has fallen significantly, which is why many law firms have undertaken lay-offs,” said Mathis, Jr. “I think the prevailing commentary is that it will all come back to normal and there will be almost a tsunami of litigation. During any crisis or disaster in my lifetime, I have never seen 15% unemployment rates, so I’m skeptical about predictions of pent-up litigation demand. Some of it will come back because economic activity will improve, and we will have to see if and when, it all comes back.”

The legal sector employed over 1 million people across the nation with average industry growth in Georgia between 2014 and 2019 sitting at around 2%.

®

oundtable:

Tax in Atlanta Leaders in tax advisory discuss their milestones and highlights from the past year and the impact from the CARES Act and its accompanying Payment Protection Plan program.

Richard Kopelman

CEO & Managing Partner Aprio, LLP

What were some of the highlights for your firm in 2019 and at the beginning of 2020?

For 2019, we were named a Top 50 accounting firm in the United States. We debuted on the annual Vault survey for accounting firms at No. 17 overall. We achieved the highest rating on Glassdoor of any CPA firm in the Top 50. We completed several business combinations, including a $10-million deal headquartered in Charlotte with five offices in North Carolina. We ended the year with a run rate of $120 million in revenue.

How would you say the accounting industry has evolved and what new services have you offered?

In the last seven years, we have added 10 new service capabilities and the services we have added in the last 15 years account for about 20% of the company’s revenues.

These range from cybersecurity, data and analytics to business technology consulting services – not the traditional offering you’d expect from a CPA firm.

What fiscal developments have impacted your clients most?

COVID-19 has certainly reshaped the playing field for many of our clients. We’ve seen some clients get really creative, re-imagining their business models in light of the pandemic. Others are getting really smart with their operations, looking for efficient ways to lean out their operations in a period of tremendous uncertainty.

There will definitely be winners and losers emerging from the pandemic and our partners have been working with our clients to help them uniquely prepare for what’s next.

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Seth McDaniel Managing Partner Frazier & Deeter Atlanta

What were the firm’s milestones in the past year?

Last year, we completed a merger with a consulting company called Arch + Tower. The advisory side of the business has been performing well in recent times and it continues to outpace the rest of the firm in terms of percentage growth, despite the disruption caused

by COVID-19. As clients have become more complex they are requesting more services like data analytics, automation, and strategic advisory. We are not going to stop investing to improve our core audit and tax services, but we do plan to continue investing in advisory services alongside those businesses.

How would you describe the legacy of the Tax Cuts and Jobs Act? We have certainly seen an influx of people moving to lower state-tax areas. The South, including Georgia, has relatively low state taxes so people and companies have been relocating to the region. Companies are paying less in taxes, so that is also freeing up more cash and is driving more investment.

How are your clients benefiting from the PPP loans program?

These programs have helped to preserve a lot of jobs.

We immediately started looking at opportunities for our clients. We have many private equity-backed clients, which unfortunately could not apply for these loans, but we have been helping the rest of our customers navigate these waters and make the most of these programs. Fortunately, we have been able to help a lot of businesses secure much needed loans.

PROFESSIONAL SERVICES ROUNDTABLE

Bert Mills

Managing Partner Moore Colson CPAs and Advisors – Atlanta

How is Moore Colson positioned in Atlanta?

Our firm has about 170 people in our Atlanta office.

We are an accounting and advisory firm, heavily consulting-focused in all of our departments. Our corporate model allows us to stand out as it does not rely on the traditional book-of-business framework.

We finished 2019 strong, with an 11.3% average annual growth year-over-year.

How has Atlanta’s business landscape fostered your success?

The state of Georgia has done a tremendous job when it comes to business attraction. Not only does it offer lower taxes compared to the national average but the busiest airport in the world is right here in Atlanta. Whether domestic or international companies are coming here to set up shop, Atlanta is an area they look at simply because of the access it provides.

What critical variables are you keeping a close eye on given the COVID-19 landscape?

The biggest factor is to remain vigilant over the possibility of a second contagion spike that could trigger a second shutdown. We truly hope it does not come to that. The biggest challenge is getting everybody open again. It will be a slow process to get back to full capacity and a (new) business-as-usual setting. Inherent to this is the cash-flow challenge across the board. A big help in that regard was the decision to push the tax deadline to July 15, 2020. It allowed our firm to focus on helping our clients and the community with the PPP loans. That is where the value for our clients is at the moment.

Michael Valerio

Technology Industry Practice Leader Atlanta Practice, Cherry Bekaert

What were the highlights for Cherry Bekaert last year?

Cherry Bekaert is one of the Top 25 accounting firms in the country. We are particularly strong from Washington, D.C., down to Miami, with around 1,300 employees in total. In Atlanta, we are based in Midtown with more than 100 employees in the local practice. It is one of our key markets for growth and technology, and we expect that trend to continue. .

How did companies react to the latest tax reform, and what impact has it had on the business community?

We found that tax reform caused some confusion and concern for most companies but we have been advising our clients to thoroughly check all of the alternatives before making a business decision based on the tax reform. It is vital to have the correct entity selection, and a trusted adviser can help ensure proper filing and tax efficiency. The new caps on interest deduction on the debt side has also had a negative impact on highly leveraged businesses.

What other challenges are your clients facing today?

It can be challenging to find the balance between following a long-term approach and also having the flexibility to make changes along the way. We like to sit down with the entrepreneurs to discuss their longterm strategy and then offer ongoing advisory based on that vision. The recent legislation changes have highlighted the need for companies to be flexible, so we try to keep that in mind when working on corporate strategies with our clients. www.capitalanalyticsassociates.com

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PROFESSIONAL SERVICES OVERVIEW

Jeffrey Eischeid Managing Partner – Bennett Thrasher LLP

We continued to grow rapidly throughout 2019 relative to our competitors. Our challenge boils down to managing it. We have sustained double-digit compound organic growth since before the great recession. We have not relied on acquisitions, which is typically a major component of a large accounting firm’s growth strategy. Many firms have had issues with respect to their succession planning, leaving owners with no choice other than to merge into a larger firm. Like most large accounting firms, we also have a wealth management group, called BT Wealth Management, which now has $1 billion in assets under management, a significant milestone in that particular arena. We continue to invest in new service lines and new advisory services. Our most significant investment in late 2019 and early 2020 was in a new multifamily office service for the ultra-high-net-worth niche, called BT Family Office.

Atlanta Metro Area Law Firm Market by the Numbers:

27,130

Legal Services Employment

1.4%

AM LAW Top 100 (2019): Five Atlanta-based law firms made the Am Law 100 rankings of the country’s leading firms in terms of gross revenues. In total, 31 law firms on the Am Law 100 have offices in Atlanta.

5-Year Annual Average Change in Legal Services Employment

0.8% 5-Year Forecast: Legal Services Annual Employment Change

33

Firm

Ranking (previous rank)

Revenue (2018)

King & Spalding

22 (23)

$1.26 billion

Alston & Bird

52 (46)

$812.33 million

Troutman Sanders

68 (66)

$521.53 million

Ogletree, Deakins, Nash, Smoak & Stewart

73 (72)

$509.77 million

Kilpatrick Townsend & Stockton

78 (80)

$450.32 million

Am Law 100 Firms in Market

4,236

Am Law 100 Attorneys in Market

85

Average # of Attorneys Per Firm (Among AM Law 100 Firms) Source: Newmark Knight Frank

70 | Focus: Atlanta 2020 | PROFESSIONAL SERVICES

Source: Yahoo Finance

Market voices: Practice perspectives

Garry Capers Division President Deluxe Corporation

With the strengthened push toward online and remote business transactions, our payments business is an area of paramount importance. There are payment types which can be digitized in a fairly easy manner, and there are many solutions to enable that, while some others are a bit more challenging. The overall use of checks has declined significantly, both in terms of transactions and consumer habits. In the business world, however, checks are still a heavily used solution, especially where there must be a lot of tracking and auditing of the types of transactions being done. Our Payments team at Deluxe has found ways to digitize those procedures.

Jones Day’s transactional practice, at both the firm-wide and Atlanta office level, is very strong. Georgia is a great place to do business. Its economy is highly diversified, with a significant service component to it. Atlanta is also a hub for fintech innovation. We certainly see significant growth in that niche, which we are pursuing. Atlanta showcases great infrastructure, with a great airport and strong educational institutions. Employers look for those advantages, especially when it comes to recruiting. Living costs remain reasonable. Atlanta’s talent pool is diverse and remarkable.

Harrison Roberts Managing Partner Parker, Hudson, Rainer & Dobbs LLP

Aldo LaFiandra Partner-in-Charge Jones Day – Atlanta

My practice is based on commercial lending and asset-based lending. The economy was still fairly strong in the first quarter of the year, and what we are anticipating is that we may start to see softness when companies report their second-quarter results. You could see a lot of borrowers defaulting on their loans when their covenants are tested in the second quarter. That remains to be seen, but PPP loans have been extremely helpful to borrowers in the middle market.

We are reopening the economy but we are also seeing a spike in coronavirus cases. Nobody has a crystal ball about what’s going to happen.

Our major area of planning that involves tax deferral and tax savings is the life insurance space. Thankfully, that area continues to be an area that the government sees as essential because they want to continue to incentivize people to care for their family and save for retirement. We are very thankful that this area has remained a safe haven for tax-deferred growth for our clients. No matter how much investment business we do, and we have become the fifthlargest broker-dealer in the nation over the last 20 years since we entered the investment space. At the end of the day, our differentiator is on the risk-based side. We are helping families think through dying too soon, becoming sick, hurt or disabled, or living too long. No one does that like we do. No one combines insurance and investment advisory together the way we do.

John Wright II CEO & Managing Partner Northwestern Mutual Goodwin, Wright

www.capitalanalyticsassociates.com

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ÂŽ

oundtable:

Legal perspectives The region’s law firms have been on the frontline of the pandemic while also needed to adapt themselves. Legal leaders discuss their practice areas and outlooks for the sector.

Gary Barnes

Managing Shareholder Baker Donelson

How has Atlanta fared in terms of bankruptcies amid the COVID-19 pandemic?

So far, in Atlanta, we have not yet seen a huge boom in bankruptcy filings. I still think we will see more of those coming before year-end, which will increase our workload in the Northern District of Georgia. I think the federal courts have done a good job at adjusting to telephone and video hearings, in part because in the bankruptcy world, telephonic hearings have been used for a long time. This greatly eased the switch to completely remote hearings. In contrast, state courts have been a little slower to adapt to telephone and video hearings, though we are starting to see more of that now.

How has the PPP loan program impacted the local business community?

I think it has been significant for the businesses that have been able to access the PPP loans. We have several clients who have benefited from those and this made all the difference in their ability to keep their employees in place. Many have been creative in altering their business model to adjust and keep orders coming in.

How would you characterize the future needs of law firms?

I think everyone is looking long term at their space needs because there is going to be a greater willingness to allow remote working. I think this will evolve but our firm is already starting to implement study groups to establish the future parameters of remote working.

Once those decisions are made, we need to evaluate how this impacts the space we need.

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Theodore Blum

Managing Shareholder, Atlanta & Chair, Atlanta Corporate and Securities Greenberg Traurig, LLP

How is Atlanta’s start-up scene changing the face of the local business community?

This is an area that will continue growing as businesses and individuals constantly look for new approaches.

Fintech, healthcare, life sciences, medical devices, and biotechnology are such critical parts of the Atlanta economy, and will certainly bring more attention to the city. We are on the pulse of increased transaction activity in fintech as well as ground-breaking advancements in healthcare, biotechnology, and medical devices. As people focus on how to evolve the way they do business, there will be an acceleration of change.

What is the outlook for your firm and the legal industry in the next 12-18 months?

The outlook is strong. Throughout the world, everyone is experiencing disruption from COVID-19 but our firm is focusing on the ways in which we can continue to drive our business forward and innovate. There will be challenges in the economy, but with our structure and vision, I am confident in our ability to ride out these changes. It can be easy to become comfortable in an economic upcycle and very often this stifles innovation.

We are seeing positive change occur as a result of the uncertainty and the need for solutions.

I think we are going to see a constant flow of legislative efforts federally, statewide, and locally to try to solve the disruption that has occurred. Going forward, it will be about embracing new ways of doing business as a result of this disruption, which I believe will lead us into brave, new business areas and allow us to continue to provide our clients with the legal advice they need.

PROFESSIONAL SERVICES ROUNDTABLE

Maxine Hicks

Chair, Atlanta Real Estate Practice & Global Co-Chair of Infrastructure, Construction and Transport Sector DLA Piper How do you see the future of leasing agreements evolving in the wake of the pandemic?

This crisis is raising a lot of issues and there will continue to be related litigation in the coming months. The pandemic will strengthen the need for all parties involved in the contractual process to slow down and make sure that every base is covered for proposed transactions and consider pragmatic and mutually beneficial solutions to preserve existing landlord-tenant relationships. Within the firm, our leasing specialists are tracking every law covering issues like eviction moratoria and pandemicrelated litigation, and we are using all the available technology to ensure that our clients are fully aware of the legal framework at play.

Which assets and sectors have been performing well during the pandemic?

The film industry is a hugely important contributor to the regional economy, and crucially it has taken steps and precautions to allow filming to resume once again, so there is progress being made in that area. The industrial sector, like warehouses and the supply chain for food delivery and e-commerce businesses, has also been booming.

What is your outlook for the Atlanta legal sector?

I believe that the outlook for the Atlanta legal sector is generally quite positive as the anticipated growth of the region will continue to provide an ongoing demand for legal services. Nationally, there are some positive trends that will come out of this crisis for the legal community, in areas like arbitration and depositions.

Allen Maines

Immediate Past Executive Partner, Atlanta Holland & Knight LLP

What sectors performed well for the firm in the past year?

The firm had a record year by all measures. Our chief metrics for measuring performance are collections and hours, and both were on a hockey-stick trajectory. In the beginning of the year, M&A activity and litigation both were quite busy. The travel, hospitality, transportation and real estate industries were adversely affected by the coronavirus and we saw high demand for some practice areas that help clients in a crisis mode. Many of our clients have sought counsel about excused contractual obligations in the context of a public health emergency, insurance issues and potential liabilities as businesses reopen.

What might be some permanent changes that occur because of COVID-19?

I believe that remote depositions, virtual oral arguments, and maybe even some virtual trials are here to stay. These new technologies are easy to arrange and the costbenefit analysis is pretty compelling for implementation.

It may still be necessary to have an in-person interview to size up the credibility of key witnesses. The virus has forced law firms to accelerate their adoption of technology and training. Currently, law firms can do everything electronically and remotely. I would expect law firms not to use the amount of office space that was customary in the past.

Hopefully, one permanent change will be a focus on the well-being of lawyers, which has been really positive during this time. Another positive that has emerged has been an even greater pro bono assistance to the underserved and vulnerable communities. www.capitalanalyticsassociates.com

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Atlanta’s Top 5 Accounting Firms:

By Number of Atlanta Professionals:

Firm Name

# of Atlanta Professionals

# of Atlanta CPAs

# of Atlanta Partners

Total FullTime Atlanta Staff

# of U.S. Offices

Partial Listing of Specialty Services Offered

Firm Headquarters

2,606

405

275

3,259

130

audit, consulting, advisory, tax

New York

2,191

497

179

NA

NA

assurance, tax, advisory and transaction advisory services

London

100

audit, tax and advisory services including management and risk consulting, strategy, and deal advisory services

New York

8

audit, tax, transaction advisory, cybersecurity and information risk management, tax credits and incentives, data analytics

Atlanta

9

tax, audit, risk advisory, transaction advisory, consulting, fund administration

Atlanta

1 Deloitte LLP and its subsidiaries

2 EY

3

1,268

308

90

1,420

KPMG LLP

4

334

165

60

399

Aprio LLP

5 Frazier & Deeter LLC

322

118

40

331

Source: Atlanta Business Chronicle: Atlanta’s 25 Largest Accounting Firms

Real Estate: Despite COVID-19, metro Atlanta enjoys a fundamentally sound real estate market that is underpinned by a growing and affluent population. But the landscape is changing, as technology, innovation and new practices arise from the pandemic experience.

www.capitalanalyticsassociates.com

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Resilient: The region’s real estate foundation has resisted the pandemic’s most dramatic ripple effects Atlanta’s thriving real estate market resisted the harshest impacts of the COVID-19 pandemic, as e-commerce trends underpinned the industrial segment and historically low interest rates propped up the residential market. But it’s the region’s growing population that may hold the key to further prosperity as a driving force in the sector.

With about half a million residents just within the city of Atlanta and the metro area teeming with just over 6 million people, the region already is one of the largest markets in the country. Before the pandemic skewed everyone’s view, PwC’s Emerging Trends in Real Estate: United States and Canada 2020 forecast that population would be the top driver of Atlanta’s real estate market developments in 2020.

Other pre-COVID drivers for the Gate City’s real estate market, and which could be expected to provide support post-pandemic, included price appreciation, albeit not affecting overall affordability; strong rental demand; a dominant single-family homes market across asset classes; above-average returns for the city’s investment properties; and favorable development and redevelopment opportunities, according to Mashvisor.

In fact, the hot single-family residential market is 76 | Focus: Atlanta 2020 | REAL ESTATE

a good gauge of the impact of the pandemic and the potential for growth moving forward. In April, as the pandemic spread, Norada Real Estate Investment reported a sales drop of 25.8% compared to April 2019.

By August 2020, Realtor.com was already showing encouraging signs of recovery.

Landscape Pre-COVID-19, Atlanta’s local real estate was demonstrating continuous signs of strength.

Commercial real estate services and investment firm CBRE’s 2020 Southeast U.S. Real Estate Market Outlook underlined the city’s economic diversity, including a wide array of high added value industries such as technology, supply chain and logistics and professional services. Hartsfield-Jackson International Airport not only remains the world’s largest passenger airport but it’s also undergoing a $7.5 billion renovation and expansion process. The Port of Savannah, CBRE says, was the second-busiest export and the fastest-growing U.S. container port. It is also going through a $1 billion expansion project that will enable the ingress and egress of larger post-Panamax vessels.

Construction was also in a good place with a series ( )

REAL ESTATE INTERVIEW

Optimistic Despite a changed world, there are reasons to remain bullish for the long term

Matt Bronfman Principal & CEO – Jamestown How did you finish 2019 and what were some major milestones for the company in the past year?

We had a strong finish in 2019, finding some great opportunities and deals we remain very excited about.

We came into 2020 very optimistic and we remain optimistic for the long term. But the world has changed dramatically with COVID-19. We have always excelled at community-focused, mixed-use projects where people want to come together and linger longer. We still believe in this thesis but also recognize it is the antithesis of what’s happening in the world today.

Fortunately, we were early in recognizing the impact COVID-19 would have on our communities. We were quick to mobilize our team to work remotely, ensuring that to the best of our ability, the people and resources our tenants have come to rely on would be available.

How has the Ponce City Market mixed-use development evolved in the last two to three years?

When I think about real estate, I divide companies into two categories: operators and allocators of capital. The latter buys a piece of property and waits for the rent to come and is rather passive, while the former really rolls up his or her sleeves and gets deep into the operations.

This is a difficult time to be an allocator as almost all real estate work today requires collaboration and partnership with tenants to be successful. Ponce is very active and requires constant curation and reinvention.

We have to always be thinking about how we can surprise and delight the visitor to make sure they keep coming back.

What progress is being made at the Buckhead Village project taken over by Jamestown?

Buckhead Village is a very important part of Atlanta and Buckhead’s story. We acquired the property almost a year ago now. It was a project that required reinvention

because there were some tenants doing very well, while others struggled. Our goal is to make Buckhead Village better over time and our plan to accomplish this is the same: to curate it, provide an interesting tenant mix, and do things that make our visitors want to linger longer. This often means considering things other than who can pay the highest rent. We want tenants capable of creating unique experiences for our visitors.

What is your outlook for Atlanta?

We have a strong pipeline at the moment, including recapitalization of existing projects. I think the prognosis for the Southeast in the long term is very good. I cannot predict what the next 12 months will look like because there are so many factors at play, but we remain bullish. www.capitalanalyticsassociates.com

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REAL ESTATE OVERVIEW

Sandor Scher Principal – Claro Development

I think there’s a lot of work that can be done in a constructive way on the planning front. Historical preservation is incredibly important, it’s been our bread and butter for the last 15 years. We need to evolve and finding ways to incentivize development from a planning perspective as opposed to penalizing and restriction is a fundamental paradigm shift that needs to happen, although it’s not an easy task for politicians and planners. The old version of historic preservation without connecting the properties to modern development requirements and the changing needs of our guests is simply not an effective long term strategy.

( ) of mobility enhancements such as the addition of a level lower than median home prices, saving today’s commuter lanes along major interstates and the rede- buyers thousands of dollars on their mortgages and sign of the I-285/GA Highway 400 interchange; setting enabling real estate investors to cushion their bottom the stage for additional commercial growth. The At- line.

On the foreclosure front, Atlanta reached a 1.7% forelanta Transit Lane (ATL) project, spearheaded by the North Fulton Community Improvement District (CID) closure rate, 1 in every 5,798 homes, in August 2020. is another good example of how the region is working to While just above the national average of 1.6%, it should improve the connection between counties. “Previously, be noted that Atlanta is experiencing a marked downtransit was very fragmented in the region and cross- ward trend that started in March 2020, going from ing jurisdictional lines was a challenge. Crossing from close to 200 foreclosures to 60 in August 2020.

Cobb County to Gwinnett County took over four hours, required three different methResidential ods of transit and three different Pointing to the bullishness of the methods of payment, not to menregion’s multifamily landscape, tion extensive planning. There is CBRE reported a total 8,900 units now one system that has Wi-Fi, delivered in 2019, surpassed by the one payment method and one year’s absorption of 9,200 units. website. The goal is that by 2023, Marketwide occupancy, therefore, all transit across the 10-county strengthened to 94.9%, a 20 basis region will be coherently brandpoints (bps) increase from yeared as ATL in one system,” said end 2018’s 94.7%. The long-lasting North Fulton CID Director Branand robust supply and demand don Beach. balance raised Atlanta rents up Brandon Beach North Fulton CID The region’s real estate market 3.5% during 2019 to $1,265, still has enjoyed constant growth since far below the nation’s weighted at least 2010, virtually improving year-on-year across all average rent level of $1,704. indicators. After COVID-19 hit, three indicators turned The COVID-19 outbreak triggered an inventory buy-and-hold investment strategies more attractive in shortage in the residential market that further tipped 2020: interest rates on traditional loans hit rock bottom the scales toward a sellers’ market. Housing inventory in June 2020, and are expected to stay low for the in the metro Atlanta area decreased by 13.4% in April foreseeable future; cumulated cash flow can justify the 2020 from April 2019. As the pandemic surged, so did market’s higher acquisition costs; the price-to-rent ratio residential median sales prices, which climbed from suggests high home prices will increase rental demand. less than $250,000 in February 2020 to close to $280,000 The low interest rate effect also dipped the cost basis to by August 2020. ( )

The goal is that by 2023, all transit across the 10-county region will be coherently branded as ATL

78 | Focus: Atlanta 2020 | REAL ESTATE

Market voices: Residential trends

Patrick Chesser

Managing Director Mill Creek Residential Trust

From a design standpoint, we are going to continue to emphasize the importance of outdoor spaces, with big and abundant balconies and layers in some convertible design features for units and amenities. From an operations standpoint, our management has really refined the art of enabling full amenity access, mail and package deliveries and trash collections, while employing a strict COVID protocols. While these have added unanticipated costs, the net result to our residents has been extremely positive and our renewals on average have exceeded underwriting.

I think people choose what we call ‘inside the perimeter’ or ‘outside the perimeter.’ If you are a suburban dweller, you are outside the perimeter.

If you are an urban dweller, you’ re inside. I’m not seeing a lot of flight to the suburbs. Both markets are continuing to grow and both markets are continuing to absorb residents. Regarding a bigger impact on the urban market, many Atlanta city urban communities that have short-term rentals or corporate rentals to service our film-making industry or the corporations have all vanished.

Jennifer Pino

President Atlanta REALTORS® Association

Teresa DeVos

Senior Vice President RKW Residential - Atlanta

Atlanta is a strong capital city that offers a great deal of diversity. In Atlanta, you’ll find job opportunities, robust arts and culture, a strong education and university system, a strong hospital and healthcare system, along with a heavy dose of southern hospitality. We have a lower cost of housing compared to other large capital cities. All these factors attract newcomers to the Atlanta area in droves. The opportunities Atlanta has to offer continue to draw in people and companies from all over the country. The American Dream can be fulfilled in Atlanta for a broad spectrum of our population, whether buying real estate as an investment or to fulfill someone’s own version of the American Dream. Our city is a great place to make that happen.

Our experience has been moderate in terms of extension requests. Where we have had this, we have done our best to work with residents. But the numbers, especially in April and May, are very market specific. Some of the less diversified employment markets, such as those dependent on tourism and entertainment, have been outliers but in general the impact has been manageable so far. For us, the slower traffic has hurt us more than the forbearance requests from existing tenants. I think a big reason for that is that many of the markets we operate in, such as Atlanta, have diverse economies and rents that represent a smaller share of a resident’s income.

Noah Randall

Managing Director Alliance Residential

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REAL ESTATE INTERVIEW

HQ magnet Atlanta remains a top destination for inbound headquarter and regional relocations

Kevin Palmer CEO & Founder – PalmerHouse Properties a curse and a blessing, there are no natural boundaries to metro housing expansion and while sprawl continues, vertical growth in the urban core is also a counterbalance. There remains a strong likelihood for continued growth and expansion in Atlanta’s relocation housing market, though we imagine that relocations will be on hold temporarily.

Where does Atlanta stand in the region’s drive for headquarter and personnel relocations?

Atlanta has historically been and remains a strong inbound headquarter and regional relocation magnet. In just the past few years, Mercedes-Benz, State Farm, NCR, GE, Porsche, Newell Rubbermaid, Courion, Sage, Harlem Globetrotters and Worldpay have relocated their headquarters to Atlanta. Penske has recognized metro Atlanta as the top moving destination in the country for the ninth year in a row.

The reasons are multifold. First, unlike other metro areas in the Southeast, Atlanta has a diverse business and talent landscape including telecommunications, technology, travel, legal and healthcare. Because of its diversity, Atlanta provides a great deal of opportunity and is a draw for talent and business relocation. Both 80 | Focus: Atlanta 2020 | REAL ESTATE

What pockets within Atlanta are growing the fastest?

Atlanta has many strong and growing submarkets.

Midtown and Intown core submarkets as well as suburban pockets like Milton and Avalon/Alpharetta in North Fulton County, which are leading destinations.

Top-scoring schools dominate the educational landscape and drive housing growth in North Fulton and South Forsyth. The Intown sub-markets of Kirkwood, Old Fourth Ward and Inman Park as well as eastside sections of Decatur/DeKalb are also everpopular destinations for inbound legal, educational and medical professionals as well as creatives. The BeltLine continues to deliver tremendous interest and development to the urban core. We are continuing to see aggressive building (single and multifamily) and growth in those neighborhoods. Finally, the Cumberland/South Cobb submarkets and West Midtown markets share in the growth, not the least of which is the explosion of new construction surrounding the new Truist stadium.

What is your outlook for the real estate market?

I believe that the Atlanta real estate market will be well-positioned to close 2020 within 10-15% of the very robust 2019 market. And if that turns out to be the case, that will be good news considering all that we’ve been through.

CONSTRUCTION REAL ESTATE OVERVIEW

Zac Gruber

The BeltLine is a 22-mile loop around Atlanta that will include trails, streetcars and parks

Managing Director Banyan Street Capital

( ) Flight to the suburbs is yet another COVID-19triggered trend, with residents fleeing densely populated and pricier urban areas to the benefit of less densified, more cost-effective suburban areas. Dunwoody, an “edge city” considered as an urban-suburban hybrid near Atlanta, is among those capitalizing on this trend.

Atlanta’s top suburbs include Sandy Springs, Roswell, Johns Creek, Alpharetta, Marietta, Milton, Peachtree City, Kennesaw, Woodstock, Decatur and Suwanee.

The BeltLine development is another key factor that is reshaping neighborhoods. Once a railway corridor around Atlanta’s core, the BeltLine development is a comprehensive transportation and economic development effort to connect 45 intown neighborhoods via a 22-mile loop that includes trails, streetcars and parks. “The BeltLine is creating incredible amounts of development and it is changing neighborhoods and the city’s landscape because this has become where people want to live,” said James Kelly, director of Hunt Real Estate Capital - Atlanta. In an interview with Focus: Atlanta, Kelly also highlighted other areas that are gaining ground. “Other hotspots are the areas surrounding MARTA stations, particularly near the major business hubs. MARTA continues to be an important differentiator between Atlanta and other markets in the southeast. Employers are attracted to Atlanta because of the airport, the major universities, and MARTA. The past 10 years have seen considerable development around MARTA stations as it helps employers attract talent. Several companies have moved their headquarters to Atlanta and this momentum continues to pick up steam.”

Industrial As e-commerce took off during the pandemic, (

)

Which areas of your business keep you the busiest?

We do a fair bit of major office repositioning work, as well as value add by monetizing previously underutilized parcels that are adjacent to our office buildings through development of compatible product types like retail, hotel or multifamily. Our partnership with Greystar on a Downtown location where we are developing 345 multifamily units on top of an existing Downtown Atlanta parking garage is a good example of such a practice.

On the office space repositioning front, our activity has varied considerably when taking into account our pre- and post-COVID-19 work. Pre-pandemic, we focused on enhanced collaboration spaces, both inside and outside the asset; investment in amenities; and expanding employee experience. Post-COVID-19, we are investing in our infrastructure with a wellness and sustainability focus, as well as helping our tenants to get back to work.

What is your assessment of Atlanta’s recovery from the pandemic?

Atlanta is on a trajectory that will be impacted by COVID-19, but the momentum that has been built up over the last several years will be difficult to reverse completely. We are already seeing the fallout with cases such as Macy’s pulling out of their lease, which comes as no surprise given the difficulties its business is facing as a result of the virus outbreak overall. That is easily offset by major firms that continue to invest heavily in Atlanta, such as Facebook, Google, Amazon, Microsoft, BlackRock, Anthem, Honeywell, Mercedes-Benz, to name a few juggernauts. While sublease space saw an uptick in early June, we aren’t at panic levels or even close to levels seen during the 2008 financial crisis. The Southeast is well-positioned to come out of this strong for several reasons. First, accessibility; second, businessfriendly regulation; third, living costs; and last but not least, access to a well-educated and diverse workforce.

COVID-19 has not changed any of that and in fact may accelerate it. www.capitalanalyticsassociates.com

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REAL ESTATE INTERVIEW

Staying busy The real estate market is proving resilient to the pandemic, and in some cases sparking growth

David Howard President & CEO – Lee & Associates They can now go into the sought-after space at a much more affordable price than even early this year. On the industrial front, there are several sales going on because interest rates have hit rock bottom. There’s also a lot of cashing out because prices are higher than they’ve ever been on the industrial side. Our industrial group has been busier than it has ever been both in sales and leasing.

What have been some recent milestones for the firm?

We were known for small industrial/office sales and leasing and have expanded that practice by representing national developers in the purchase of land so they can build industrial facilities and represent them on the leasing of those new buildings. We are doing more sale/ leaseback transactions in 2020 as companies look to use the sale proceeds and invest those funds into growing their business. We have a small retail footprint but that is not a big emphasis at present. The lion’s share of our office businesses is made up of subleasing office space, driven by companies that are realizing that a substantial number of their employees can stay at home and not have to come to the office, so they are shedding that space. This is also creating an opportunity for other companies that may have been priced out previously.

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What emerging trends do you have on your radar?

We are all keeping an eye on the e-commerce side of spending, as well as manufacturing. If the latter starts coming back to the United States from other countries as it has been purported, it will certainly be good for business in the Southeast. The ports of Savannah and Charleston continue to grow and get more business that used to go to West Coast ports. This has created a big opportunity in the Atlanta marketplace.

Manufacturing has always been a real hotbed and we are hoping that is going to continue. Last-mile distribution is going to be an important component.

Wherever the consumer is seeking one-day deliveries, companies are going to develop facilities that can be within a certain distance to these homes and businesses. There is another whole area of opportunity with restaurants shifting to food delivery as they learned how to adapt throughout the pandemic.

What is your take on the performance of vacancy rates?

There is increased absorption in industrial. Vacancy is close to 6%, which is healthy for the market because if it goes too low, toward the 2-3% range, it means there is not enough product to satisfy demand. Anywhere between 6% and 8% is rather strong and we are at 6.6% for 4Q20.

REAL ESTATE OVERVIEW

( ) the industrial segment also has made further gains, given Atlanta’s status as the Southeast’s largest distribution hub. But it already was a commodity even before COVID-19. CBRE shows that more than 100 million square feet of industrial space was absorbed in metro Atlanta between 2013 and 2019. South Atlanta claimed the crown as the most vibrant industrial submarket throughout 2019 with over 7.5 million square feet of net absorption, which represented nearly half of metro Atlanta’s total industrial demand for that year. This bustling activity is directly correlated to Hartsfield-Jackson International Airport, together with the quickpaced expansion of the Port of Savannah. CBRE also mentions the Georgia intermodal railway is offering a boost to Atlanta’s industrial market by serving as an attractive alternative to congested container port operations.

In 2020, the segment received a further upward push as COVID-19’s e-commerce impact injected a premium into industrial real estate across the country.

The Amazon effect is absorbing available warehouse space at an accelerated pace to consolidate and solidify last-mile logistics and cater to the expediency needs of their quarantined clients. During 2Q20 alone, the e-commerce giant grew its Atlanta warehouse space by 1 million square feet, according to a Colliers International report on Atlanta real estate. Retail behemoth Walmart also added 1 million square feet.

Another testament of the Big Peach’s industrial real estate health is the record $126.6 million sale of Gwinnett Commons, a 1.2-million-square-foot industrial complex purchased by CIP Real Estate.

The deal in August 2020 is the largest real estate

transaction within that space since 2015. When first purchased by the sellers, the asset cost $83.2 million.

Office As 2019 ended, metro Atlanta office space was showcasing a demand surge as evidenced by more than 1.6 million square feet absorbed. Skilled talent availability is increasingly becoming the main driver for businesses relocating or launching in the Gate City and Atlanta’s ability to attract population has been a critical office market booster. According to CBRE, Atlanta ranks third among the top U.S. markets for office-related premium job growth, with a 13% growth rate equivalent to an extra 93,000 jobs since 2014. In 2Q20, Colliers International found Atlanta’s office market had yet to be impacted by COVID. Despite many businesses going remote across the board, the sector absorbed an extra 100,000 square feet during that quarter and vacancies remained stable with a mild 10 bps increase.

Notable Class A leases, renewals and expansions in the space include household names such as Microsoft, Emory Nursing School, Bank of America and Honda Finance Corp. Staying true to its renown as a tech business catalyst, Atlanta was among just three leading markets that saw growth in tech-related office leasing in 2Q20, to the tune of 71%, representing close to 800,000 square feet of leased space, compared to 2Q19.

Washington, D.C., and San Diego were the other two, with 55 and 58%, respectively. The remaining seven markets, San Francisco Bay Area, Manhattan, Dallas/ Fort Worth, Seattle, Boston Denver and Los Angeles all witnessed contractions ranging from 34 to 74% in that same quarter.

COVID-19 has also triggered a tenant-focused

Lily del C. Berrios Principal & President Sizemore Group

What are the most significant changes and adaptations during this pandemic period?

Regarding virtual meetings and the like, we are going to probably see a return to in-person meetings, perhaps not as many but combined with a hybrid form. We made a huge jump into the use of technology and those changes that have been for the good are here to stay. Encouraging people to go out and to spend more time in outdoor spaces, that change is also here to stay. It’s healthier, better and it will, literally, influence the landscape of what people do in terms of how they function, which plays into things like the use of streets and sidewalks.

For Atlanta, even as there’s a conversation about people fleeing the city because of density, that trend may be temporary. In effect, since Atlanta offers a warm climate, where it’s nice to be outside, because of its advancement in research and development, which attracts companies, and because it is a relatively lower density city, there might be people, nationally, who are going to find it attractive to move in.

What are your thoughts on social responsibility in design?

A shift is coming, and we are already feeling it heavily. We tend to do sustainable designs and community places and spaces; we normally gravitate toward that.

In the last few months, it has come up in a way that just thrills me, in terms of the planning concepts and ideas we were working on. How do you define equity within the context of an educational component? What makes an equitable public-school program, and what does that mean in terms of brick and mortar?

We’ve had to agree that there’s a certain industrywide baseline in terms of what you need in a school. How many classrooms? Plus a cafeteria, a library, a gym.

We’ve also had to work on defining what, in addition, you will bring to achieve equity. It’s about addressing special needs, and support beyond the classroom. For instance, it may require a space where you deliver certain services to that child.

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approach that offers creative office space that includes flexibility to accommodate different workforce sizes, on-site and nearby amenities and environment as well as health-centric design, according to JLL in an interview with the Atlanta Business Chronicle. These are trends that are likely to continue moving forward How the pandemic reshapes the office space, overall, however, will depend on the specific market said Bruce Ford, president for the east region at Transwestern.

“From an office standpoint, people are trying to figure out if trends are long-term or just a short-term reaction.

I think it differs by market. For example, more dense markets like New York and Chicago that are reliant on public transportation have different issues than metro areas like Atlanta. Atlanta’s lack of reliance on public transportation is probably to its advantage at the moment. I’m not sure that there is going to be a lot of hub and spoke kind of movement here, but Atlanta appeals to firms in densified cities like Chicago, New York and

The effective property tax rate in Atlanta is .94%.

REAL ESTATE OVERVIEW

others that may use that model to relocate certain components of their businesses and take advantage of cost savings and our extraordinary talent pool.”

Retail Before COVID-19 forced retailers into a fight for survival, Atlanta’s retail segment was coming off a strong 2019.

Colliers International reported the Gate City absorbed over 1 million square feet in 2019, a landmark figure that reflected on the sector’s uninterrupted growth since 2009. Vacancies remained at their lowest point since 2008, at 6.6%, causing a continued rise in rental rates, reaching a 8.2% increase between 4Q18 and 4Q20. As the country went deeper into the pandemic, brick and mortar shops and shopping centers closed. Retail businesses across the board are adapting to the new landscape through modified visiting hours, take away and drivethrough modalities while largely depending on the support of their local governments to both ease ( )

Perspectives Bonneau Ansley CEO – Ansley Atlanta Real Estate From a consumer standpoint, COVID-19 has certainly been a challenge. There are two demographics: people with needs and people with wants. For those with needs, it is a bit more of a challenge to get them to go and look at properties, but we are getting there. Those with wants are on the sidelines right now, prioritizing other issues, but it won’t be long before we get them back.

Jim Bacchetta Vice President – Highwood Properties Inc We completed a significant amount of leasing and improved our occupancy in 2019, and we had strong cash rent growth, nearing 5% across our portfolio. The first quarter of 2020 was also pretty strong for us, somewhere in the range of 350,000 square feet of leasing. All of the leasing metrics were good for us, including net effective rent, cash rent growth, and payback ratio.

Jenni Bonura CEO –Harry Norman Realtors Closings outpaced starts from June to August 2020 compared to the same period in 2019. That speaks volumes because in new homes, the inventory is less than it was last year. That remaining inventory is on its way to disappear fairly quickly. Even if the exact checklist a buyer may have is not fully met with the inventory that exists, a lot of builders are looking to pivot quickly.

Greg Ott Division President – Century Communities I don’t know if we will go back to the pre-COVID-19 need for everyone to work in a large office every day. I believe a lot of our customers will have the option to work from home at least a few days a week. From a product design standpoint, we will need to factor that in.

Ferdinand Seefried CEO – Seefried Industrial Properties About 40% of all new warehouses are absorbed by e-commerce-related companies. A large component of the remaining 60% goes to third-party logistics companies, food-related companies and companies whose business model relies on keeping large inventories and warehouses close to their largest clients, such as the automotive industry.

www.capitalanalyticsassociates.com

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®

oundtable:

CID outlook Community Improvement District (CID) leaders discuss current plans and their key priorities for the coming year.

Jim Durrett

President & CEO Buckhead Coalition

Ann Hanlon

Executive Director Perimeter CID

How have you been working to improve the Buckhead brand?

We purchased the domain Buckheadatl.com and that’s going to be the website for people who want to learn anything about Buckhead. It’ll be the public portal that can get you to all of these organizations – the Coalition, the CID, Livable Buckhead, the Buckhead Business Association – and will be the online home for our collective work in the community.

In the past, there have been terms thrown around like “the Beverly Hills of the East.” Some people liked that, some thought it was horrible. We are going to undergo a branding exercise that’s going to involve all stakeholders to determine what should be the brand of Buckhead and how to communicate that to different audiences.

What major developments is the Perimeter CID involved in?

The first thing I should mention for 2020 and 2021 is the reconstruction of the interchange for two of the largest highways in metro Atlanta: the 285 and the 400. We are working with the Georgia Department of Transportation and this project will provide congestion relief for the entire region. It’s slated to open in December 2021. The second exciting development is the trail system within the central perimeter market. We have worked with the cities of Dunwoody and Brookhaven to advance the trail in front of Perimeter Mall. This will be for pedestrians and cyclists and should be completed by December 2020. Eventually, the trail will have different segments connecting to the BeltLine, which is wildly popular in Atlanta.

What’s the outlook for the Buckhead area for 2021?

Anybody who says they’ve got an outlook that they are more than 5% certain of is blowing smoke. I’ll say that if we are able to get a handle on COVID, and people feel like it’s ok to come back to work, we’re going to be very well-positioned. At the CID, we’ve been doing so much to enhance the public realm, which is going to make it so much easier for people to get around within the core district and what we call the Village area of Buckhead.

We’re completing a very significant multimodal trail called PATH400, which goes through Buckhead, and it’s being connected to two other multimodal trails in the south of Buckhead, which will eventually connect to the Atlanta BeltLine, so we are going to have terrific access for people outside of Buckhead and from Buckhead to other places.

What kinds of development is the CID considering?

We have a heavy focus on transit development. We have three heavy rail MARTA stations in the CID – Dunwoody, Sandy Springs and Medical Center. They are three of the best stations in the MARTA system and they all record high ridership. We are focused on making those stations much more comfortable.

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What are your top priorities heading into 2021?

I have three priorities for this organization, the first of which is to focus on building up the trail system. The second priority is to continue actively improving our transit stations, as well as access to the stations and consumer experience. The third priority is to focus on getting the interchange project completed by the end of 2021.

REAL ESTATE ROUNDTABLE

Matthew Lee

Executive Director Tucker-Northlake CID

What are some significant recent highlights for the Tucker-Northlake (CID)?

We have the benefits of a traditional small Downtown, an industrial district and a regional activity center, all within the footprint of the CID. In Downtown Tucker, we are working with the city of restore and expand the original street and alley grid from the 1890s. In the Northlake District we are working with the Georgia Department of Transpiration on the future I-285 East Side Express Lanes project, and in the industrial areas we are working to ensure businesses maintain ease of access in and out of the area as well as transit options for their workforce.

How might mobility projects for the growing number of residents and commuters change with the increased popularity of remote work?

The higher numbers of employees working remotely hasn’t slowed down any of the mobility projects in the region. Road improvements, trail expansion, and new bus stop installations have continued. No matter the benefits of working from home, we were not created to live in isolation. It is important for residential areas to have strong internet connections, and nationally Tucker ranks higher in download speed than several major cities, but for all the time spent at home, plenty are interested in returning to the office.

What are your top priorities heading into 2021?

We will continue to focus on connectivity. Preparing for the I-285 East Side Express Lanes project, advancing trail connections, restoring the alleys in Downtown Tucker, and working with our partners to promote local opportunities.

Kim Menefee

Executive Director Cumberland CID

How does the CID impact the Cumberland community?

We conducted an economic impact study at the end of 2019. One of the things we were able to measure is that the CID has an annual economic impact across the state of Georgia amounting to $20 billion, and, a $15 billion annual economic impact on Cobb County.

Since our inception, the Cumberland CID has invested in transportation and infrastructure and they remain our primary goals. However, in recent years, we have added much more in the area of beautification, investing in different forms of mobility, trails and a new project for which we just received initial funding that will create a multimodal path around the core of the Cumberland district. It will add dedicated bike and pedestrian lanes to the strong drivability we have built with our partners.

What are Cumberland CID’s main priorities toward 2021?

We recently completed an update of our master plan, Blueprint Cumberland 3.0. It includes our priority project list and planning through 2024. A critical project within our pipeline is adding the $44-million Akers Mill Road ramp to the I-75 NW Express Lanes, which is one of the most successful infrastructure projects in Georgia’s history. We partnered with Cobb County, GDOT, ARC, as well as the State Road & Tollway Authority to fund this project. We received our final funding in 2019 from the U.S. DOT to complete the funding required for the project. We are in the design phase and going to construction in the summer of 2021, with a scheduled opening in 2023. We also just received funding for the first of five segments of the Cumberland Multimodal Path. www.capitalanalyticsassociates.com

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Market voices: Landscape

Alex Hay

Executive Director Drapac Capital Partners

The majority of Drapac’s portfolio is suburban, residential single-family land, but we also have significant holdings in intown Atlanta. We are very bullish on the future of Downtown, which we think is undervalued, and Midtown, where the bulk of the development activity is located. Midtown has a shortage of good future development land parcels, with most being controlled by developers, so we see long-term value and upside. This submarket is increasingly attracting developers from large gateway cities like New York and Chicago who are paying what are record prices for Atlanta but that are bargains compared to their home markets.

Affordable housing has been and remains a hot topic. Coming out of this health crisis, we might have the ability to do things that are more creative. I think there will be some redevelopment opportunities. Obviously, new construction is the most expensive way to do anything. It would be less expensive to repurpose something that’s not being used very effectively now, that has been abandoned, like a mall, for example. You could use the existing physical structure and build that out as multifamily, which would cost less than it would to build it from scratch.

Brian Ward

Chief Executive Officer, Global Trimont Real Estate Advisors

Regional Managing Director NorthMarq - Atlanta

I generally have a negative outlook on Opportunity Zones. However, that outlook is admittedly uninformed and based upon observations from afar. To me, Opportunity Zones feel like a nuanced tax advantage-type of structure that may benefit some people in certain instances, much like tax-deferred exchange vehicles were all the rage a decade ago. This benefit could fade quickly. As a general comment, commercial real estate investments and structures that are motivated mostly by tax consequences and not otherwise driven by fundamentals don’t usually turn out well.

When you can adapt and reuse existing buildings, we look to make sure it is to the benefit of our planet’s preservation. People are attracted to and look for attractive real estate options. There is a consistent and abundant emotional, physical connection to real estate that is 100 years old versus having everything brand new. Inefficiencies need to be tackled with old buildings. Our clients would like to see more of such repurposing but then you get into tension between reusing authentic real estate and efficient, cost-effective real estate.

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Faron Thompson

Chris White

Vice Chairman, Director Southeast Region Lead Savills Atlanta

REAL ESTATE INTERVIEW

Smart move Retooled approach focuses on hospitality, strategic merchandising plan and a heavily activated environment

Tim Perry Managing Partner – North American Properties How did your “Smart Development” concept evolve?

North American Properties began to retool our approach to property operations during our reprogramming of Atlantic Station, a 138-acre mixeduse development in Atlanta that was once on many real estate pro’s “death watch” list, by deploying a hospitality-focused approach, implementing a strategic remerchandising plan and creating a heavily activated environment for guests to enjoy. Through trial and error, we curated a robust and mixed-use experience that resonated with the community and turned around the property. We even trademarked the term ExperienceMaker™ to refer to the concierge and operations team that delivered this intrinsic sense of place and belonging to guests; we became stewards of the community’s asset. We were able to deploy this same formula at Avalon in a nationally recognized way and found that the street-level activation was only part of it. The ancillary developments were a large contribution to the overall success of a mixeduse destination. Whether working in an office, living in a residential unit, or staying in the hotel, each component contributed to the greater effect, and rent reflected 40%-plus above market.

How are you tackling ground-up developments?

Residential fundamentals are strong, both in singlefamily with low rates and with multifamily as the trend continues to slowly move toward rent versus own. We will see how the long-term effects of density affect intown locations, but we’re very optimistic on close suburbs where the cost can be reduced. The COVID effect also has turned some landlords of office/ retail properties into land sellers of portions of their site for residential, due to lease encumbrances that are expiring or businesses not opening following the pandemic. Commercially, we are seeking existing

assets that are mixed-use, or can be turned into a mixed-use development. For example, a surfaceparked suburban office project may present an opportunity to add neighborhood amenity retail, residential and hospitality, and at a lower basis than ground-up development of the entire property.

What are North American Properties’ expectations in Atlanta toward 2021?

Innovate and differentiate. There are great assets with unrealized potential that may or may not trade at a discount the market wants but have ample return to invest at values that are still accretive to opportunistic investors. The capital stockpile in the market will be rewarded by smart buys sooner rather than cheap buys later. www.capitalanalyticsassociates.com

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Alyssa Davis Executive Director Sugarloaf CID

Why does the region need a CID and how has the Sugarloaf CID contributed to growth?

It is almost becoming a community requirement to stay competitive. Those communities that have CIDs have seed funding that attract additional dollars that bring in infrastructure improvements. A CID used to be a way to have a competitive advantage but it has now become a way to ensure continued competitiveness.

We are a fairly new CID, formed in 2016, and our first real effort was in identifying initial improvement projects and creating a Liveable Centers Initiative (LCI) master plan. We also are lucky that in Gwinnett County we have the SPLOST program that provides funding for transportation improvements. Through that program, we have been able to complete three major sidewalks, an intersection improvement and the biggest project we have constructed to date: the traffic flow improvement between I-85 and the main entrance into the Infinite Energy Center. This activity center attracts over 1 million visitors per year. The CID was able to contribute some additional funding to improve the aesthetics, including mast arms, pavers and landscaping.

What industries and sectors are primarily represented by the CID? We benefit from a diverse business environment. As well as the infinite Energy Arena, we have a lot of hotels and restaurants, as well as Class A office space. We have banks, law firms, engineering firms, and many other professional service industries. We have some industrial properties as well, but we will probably not see so much new industrial development but rather higher density construction due to our space constraints.

The hotels in Gwinnett have been doing better than some other parts of metro Atlanta. Right now, big concerts and events are not going to start coming until there is some improvement in the national market. There have been some events going on at the Infinite Energy Forum with social distancing, symptom screening, and increased hygiene measures in place.

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Over the last decade, Atlanta has seen a population increase of over 730,000 residents.

( ) restrictions and provide financial aid. By May 2020 some malls across metro Atlanta were allowed to reopen under strict health and social distancing guidelines but the overall damage remains difficult to gauge and may depend on how fast a vaccine reaches commercial scalability.

One potential outcome of the hit on retail and hospitality-related real estate is the ability to repurpose to more profitable developments. These could include affordable and senior housing. “Hospitality and retail have similar characteristics in the sense that they appear to have been hardest hit by the pandemic’s effects. We have seen opportunities to convert older, big box-type hotels that are on the edge of obsolescence into senior housing developments. It is probably among the most obvious opportunities.

We have also seen hotels converted into micro-

REAL ESTATE OVERVIEW

apartments,” said William Hodges, chairman and CEO at Hodges Ward Elliott.

Affordable housing Like many large metros across the country, affordable housing is a key issue in Atlanta, especially as affluent professionals arrive, leading to greater gentrification and the potential displacement of long-term and less affluent residents.

To tackle the issue, in July 2019, Mayor Keisha Lance Bottoms released the city’s One Atlanta Housing Affordability ActionPlan that included four goals: create or preserve 20,000 affordable homes by 2025 and increase overall supply; invest $1 billion in affordable housing creation and preservation; ensure equitable growth and minimize displacement; and support innovation and streamline processes.

Among the strategies were rezoning efforts to make it easier to build housing and incentives to encourage affordable housing near public transit.

Atlanta’s 26 Opportunity Zones provide another pathway to avoid community displacements for the sake of development through housing trust funds or inclusionary zoning, as well as overlaying the zones with a form of equity impact requirement that could foster inclusive land and economic development policies.

One final initiative of note is the debt issuance plan announced in August 2020. The city council’s ambitious plan expects to borrow up to $100 million for a pipeline of 3,500 affordable residencies. The first $28 million will be financed by housing trust funds.

Cities in the metro Atlanta area might also ( )

REAL ESTATE INTERVIEW

Flexibility is key The jury is still out on the future of office space but success will be determined by the ability to adapt to any scenario

Kevin Murphy Managing Director –Newport to adapt to any possible scenario. Our office portfolio in Hotel Row and 222 Mitchell naturally offers a lot of flexibility, and we are adopting touchless technology for doors and elevators and evaluating other technologies that will make our buildings even more attractive. We also have a lot of retail here, and it is our priority to bring vibrancy back to the streets through creating a walkable neighborhood with great storefront opportunities.

What is your take on the future of office space?

The impact of COVID-19 within office has been on everyone’s minds, especially in terms of the permanence of remote work. Businesses are struggling to determine what is best for their teams long term and nobody really knows quite yet how this is all going to shake out. As a significant portion of our portfolio is made up of office space, we need to be deeply cognizant about what changes office users are looking for in their work environment. We realize people are working a lot more from home and businesses are integrating much more technology and noticing its limitations.

Even today, people recognize the need for in-person collaboration. The answer is going to be different depending on the type of company and the business it runs. In the end, it boils down to having flexibility 92 | Focus: Atlanta 2020 | REAL ESTATE

How would you characterize the residential element in your Downtown vision?

Our Downtown footprint extends over nine full city blocks. The idea is to ensure walkability so that you’ll be able to get off at the Five Points MARTA station and walk through the neighborhood to your office building or Mercedes-Benz Stadium. There will be a strong focus on bringing restaurants and bars into the neighborhood first, to turn the area into a real 18-hour experience for locals, visitors, office workers and students. In addition to our portfolio of 48 buildings, we also have 4 acres of surface parking. Long term, we believe that there will be less reliance on cars with a maturing mobility-as-aservice landscape.

We are convinced, regardless of COVID-19, that people will return to mass transit and walkable spaces and they will seek urban environments that rely much less on cars. While we are starting with the existing historic buildings and transforming those into office and retail, we will soon turn to planning dense multifamily on our surface parking lots. One of the advantages of being city-centered is the incredibly attractive zoning. We can build as much housing as can be absorbed by the market, which allows us to self-define our neighborhood and deliver residential apartments quickly. Equally important, we established a great partnership with the city of Atlanta to help deliver housing at all income and cost levels.

REAL ESTATE OVERVIEW

Mike Sivewright President – JLL Atlanta Region I think the pandemic is more of a pause than a shift. We do not anticipate a long-term change in office space. We certainly think there will be a greater focus on remote working but companies will recognize the need for dedicated space for engagement and activities.

Pre-pandemic, Atlanta had already positioned itself as a global technology center. Over the last decade, the metro has been a magnet for corporate headquarters relocations and has attracted more than 40 corporate innovation centers due to the strong pipeline of tech talent and favorable business climate. I do not think the pandemic will affect that. ( ) want to take note of how Decatur is facing its workforce housing issue in the midst of the pandemic.

In August 2020, the city commission mandated private developers to set aside at least 10% of new housing units with five or more rental or for-sale units be priced at below-market rates for 20 years for lowto moderate-income residents. In short, Decatur has joined the select club of the few municipalities in the state to enact mandatory inclusionary zoning.

Looking ahead Atlanta’s solid real estate market fundamentals place it in a unique position for a quick recovery across the different links of its real estate value chain. Retail will continue to struggle and will have to look for a combination of outside-the-box and conventional business diversification or reengineering practices to

be kept afloat while consumers regain confidence or a vaccine is developed, with the former likely dependent on the latter. The e-commerce train has left the station and its push is unlikely to be reversed, while the future of office space will be determined on a case-by-case basis depending on the needs of Atlanta’s businesses and corporations and their experience with going remote.

The layer of complexity that COVID-19 added to the city’s prevalent issues of gentrification and affordable housing in 2020 will have to be met with bold leadership from the different levels of government and innovation from the private sector to design financing mechanisms in coordination with government agencies, that are ambitious, sophisticated and efficient enough to provide the required resources to successfully deal with these complex issues.

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Construction & Infrastructure: Construction was deemed an essential industry for the region and continued working in 2020 to materialize metro Atlanta’s plans to accommodate its promising growth on both the demographic and business fronts. Infrastructure improvement and development, including smart city adaptability, remain pivotal to its ambitions.

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Essentially strong: Solid fundamentals have helped buffer the construction and infrastructure sectors but a talent shortage remains With an expected population spurt amounting to another 2.9 million people in the Atlanta MSA by 2050, according to the Atlanta Regional Commission, well thought-out planning and sizable investments flows are necessary to make sure the metro area is equipped with the necessary infrastructure to ensure sustainable growth.

No wonder then that construction was deemed an essential service during the COVID-19 pandemic.

Before the virus outbreak, the region’s ambitious infrastructure plans and a strong real estate market had led to a fundamentally sound construction industry.

Still, the sector was not immune to the challenges of the virus.

According to Cumming’s U.S. Construction Market Snapshot Q3 2020 focused on Atlanta, construction market volume in the quarter totaled $20.25 billion, a 12.3% contraction compared to 3Q19’s $23.09 billion.

The report projects a Q3 2022 recovery amounting to $21.98 billion led by residential construction with $9.54 billion, followed by $6.20 billion in infrastructure, $2.29 billion for commercial, $1.1 billion for education, $759 million in manufacturing and $1.31 billion in other structures.

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The same report showed construction employment reached an all-time high in 2019 of 130,000 active workers and an unemployment rate of 3.4% compared to 90,000 and close to 10% respectively in 2011, a sign of steady growth. COVID-19 dented these figures in 2020 with a 6.9% unemployment rate and close to 128,000 active workers, figures that imply a lesser impact from the pandemic wreckage than in other industries, like hospitality and tourism.

Among key projects, the city of Atlanta hosted four of the region’s Top 10 by construction value: the Centennial Yards, SR 400 express lanes, the Atlanta Motor Speedway Resort and the Hartsfield-Jackson Airport’s sixth runway, with a cumulative value of $8.24 billion.

Construction The Georgia Department of Labor projects the construction industry will grow by 13.8% by 2028, triggering the need for an added 271,529 skilled jobs by 2022. As the state continues to tackle the pandemic, it has not lost sight of the future and how critical the consolidation of a skilled construction labor force is to build it. The Metro Atlanta Chamber ranks the area ( )

CONSTRUCTION INTERVIEW

Talent shortage The lack of a skilled workforce is spurring higher costs and could result in a leadership shortfall going forward

Niles Bolton Chairman & CEO – Niles Bolton Associates What are the root causes of the sector’s talent shortage?

In our industry, when you get a market such as it was in 2008, architecture rapidly becomes one of the least desirable professions. It was not until 2011-12 when people finally were able to get jobs again. Each time such downturns appear, a 10-year gap is produced in terms of talent formation and consequently, staff.

Parallel to that, the baby boomer generation is retiring rapidly, and it makes up a large chunk of the current active labor force in our field. Even looking as far back as the 1991-93 recession, you could hire someone with 20 years’ experience cheaper than someone with 10 years’ experience. In recent years, the starting salaries for kids getting out of school have been way up. We interviewed 10 different colleges trying to recruit architecture students. For each 20-30 students, there are 50 firms engaging in hiring conversations. It is the same case at every school.

On the construction side, a lot of the older people in the sector are going to retire as the COVID-19 outbreak subsides. We are going to have a real leadership shortage in the construction field and the understanding of how to get things built. There will be advanced skills available in the realm of computer sciences, programming, scheduling and manufacturing but the hands-on experience will be lacking. It will definitely prohibit labor costs from going down in the future.

What trends in urban planning have you identified?

It was certainly moving along heavily toward the walkability and higher density factors. Now, there is second guessing in place by what happened in New York throughout the pandemic and other densely populated places with mass transit. Urban planning looks to be used for social engineering. One of the

major problems we have had is all the new mixed-use products. Cities force you to have retail space on the ground floor. Retail was facing increasing difficulties even pre-COVID-19 because of e-commerce all across the country. Developers putting up projects today will have trouble getting creditworthy tenants in that space.

How do you see the construction sector moving forward from the pandemic?

Compared to other markets such as Boston and Philadelphia where construction works have stopped, projects here have been allowed to continue as housing development has been deemed essential work. Many have had good progress due to lockdown procedures shutting down traffic and can continue to progress if they can get the materials and other things to do so. www.capitalanalyticsassociates.com

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Metro Atlanta saw the fourth-largest population increase of all U.S. MSAs from 2010 to 2019 ( ) as the ninth-largest in the country. Counting 6 million people in 2019, the chamber reports metro Atlanta went through the fourth-largest population increase of all MSAs in the nation, with close to 734,000 people from 2010 to 2019. Since 2015, Atlanta has been among the Top 5 metro areas in the nation for most net migration. The latest figures show that from 2018 to 2019, metro Atlanta’s net migration totaled 43,584 people. To support such growth, infrastructure improvement is a continuous necessity.

Despite COVID-19, metro Atlanta is housing a greenlit pipeline that has become the most-watched list in the construction industry, ranging from large adaptivereuse projects to skyline-shaping construction. On the mixed-use side, the list includes the 14-story Star Metals development in Midtown and Midtown Union, which will unlock 600,000 square feet of new office space within a 26-story tower, along with an 18-floor residential building that counts 355 apartments sitting

atop eight levels of parking spaces, and a 12-story hotel and 30,000 square feet of retail. The $2 billion High Street project is poised to provide 8 million square feet of mixed-use destination, which includes 400,000 square feet of restaurants and retail, 635,000 square feet of high-end office space, 1,500 apartments, a 400key hotel and a public park.

On the reuse front, Assembly, Pullman Yard and Fort Mac stand out. The first will resurrect a former GM plant site in Doraville with 165 acres of housing, office space, restaurants, retail and entertainment options.

The second is a more than $100-million overhaul of the former Kirkwood rail yard to a 27-acre space that will be divided into a movie studio and live-work-play space.

The third, formerly known as U.S. Army base Fort McPherson, will become a mix of residences, retail, art spaces and other amenities with an investment of $25 million.

Being named an essential activity helped bolster the sector throughout the pandemic-generated uncertainty. ENR Southeast forecasts that 2020 will close with an upward swing in new construction starts worth $17.42 billion in the Atlanta-Sandy SpringsMarietta area, a 3% increase compared to 2019’s $16.8 billion. Residential construction is expected to lead the charge with $9.8 billion, commercial is next with $5.4 billion while infrastructure comes in $2.1 billion.

The pandemic has also accelerated new technological trends as tenants prioritized the implementation of new and improved health and security standards. It has cleared the way for touchless technologies to expand beyond facility entry and exit to find its way toward garage doors and even bathrooms. Ventilation systems are also getting innovation boosts to include ( )

Market voices: Lay of the land

Michael Bartlett

Executive Vice President JE Dunn Construction

Price is a direct correlation to supply and demand. Until the supply outpaces demand, prices will remain steady. We don’t see project cancellations at this point, only delays. So projects that were lined up are still on the backlog or are slated to happen later. My guess at this point is that prices will be flat for the year. I don’t see projects being canceled, which might drive prices down.

Rather, I see projects being delayed six to 12 months. That will likely offset normal escalation for this year.

We follow the demographics in the areas where our offices are located.

Each city has its own personality and needs. Batson-Cook does its best to be flexible and agile to serve those needs by offering a diverse suite of services and expertise across the Southeast. The Southeast still enjoys constant migration flows from inhabitants in the Northeast and the West Coast. Of our seven offices, Atlanta is by far the largest in terms of revenue. Atlanta’s airport and its pro-business environment are major catalysts.

Randall Hall

President & CEO Batson-Cook Construction

Casey Hill

Division President Lennar

Lennar’s financial strength, reputation, relationships and experience in the market helps us greatly in our ability to secure new opportunities. Certainly, in a growth market, homesites are in short supply. Land scarcity and a decline in new and existing inventory homesites has created some urgency in the marketplace.

All those factors combined have created a robust market for homebuilding.

Given our market strength and experience, we are able to quickly react to market opportunities to help facilitate our ambitious growth plans for Atlanta.

2019 was a strong year for housing. Builders have been benefiting from very low supply, which has struggled to keep up with demand. Really, since the Great Recession, there has not been enough adequate new housing built in many submarkets, so there has been supply constraints, more than anything else.

Demand has been strong, so builders have been growing and 2019 was a great year. In May 2019, we acquired a builder in North Atlanta, Sharp Residential, which has a great team. That’s gone very well. Atlanta in 2019 will have a very special place in our hearts for a very long time. That was our second entrance into the Atlanta market.

Karl Mistry

Regional President Toll Brothers

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CONSTRUCTION OVERVIEW

Atlanta Construction companies are embracing a tech-forward mindset.

( ) ultraviolet lights that deal with pathogens in the air. These new developments are expected to be included in new constructions and to be adapted into existing assets.

Sector performance Prior to COVID-19, developers were already dealing with rising construction costs and the pandemic did not alleviate the issue. CBRE’s November 2019 Southeast Construction Costs Report revealed the primary culprits were materials costs, low unemployment that generated competitive labor costs and government regulations at all levels.

Moreover, the National Construction Cost Index has increased more than 100% since the early 2000s, causing construction costs to rise faster than rents.

On the bright side, the Southeast’s strong growth and demand trends place it in a more favorable position compared to other higher-cost markets, with an 100 | Focus: Atlanta 2020 | CONSTRUCTION & INFRASTRUCTURE

average construction cost increase of 11% compared to the national average of 13%. Post-COVID, supply chain disruptions are forcing developers to choose between construction delays or costlier materials suppliers, while the prevailing uncertainty relating to overall impact across asset classes is also pausing new construction. “In terms of costs, one of the biggest drivers of the rapid increase in recent years was pipeline supply and demand. There was far more work out there than subcontractors had capacity for, so this was a huge driver of costs. That has now gone away, and the playing field has been leveled. That being said, this did not cause steel or materials prices to drop. We have now been rudely awakened to the fact we are dependent on foreign countries for almost all essential commodities.

Strong relationships with trade partners will be critical as we try and temper those material fluctuations,” said Brian Bollins, director of operations at Choate Construction Company in an interview with Focus:.

CONSTRUCTION & INFRASTRUCTURE OVERCONSTRUCTION OVERVIEW VIEW

David Dymecki Managing Director Perkins + Will

How would you describe your smart development approach to your products?

The way we approach development in the city and the region is through four major focus areas. A focus on the local context in each of our projects – whether its Downtown, Westside or Buckhead – place and context is always at the forefront of our minds. A focus on people and experience – human centered design with deliberate strategies and solutions focused on program, scale, and materials. A focus on Living Design – work that is inclusive, sustainable, resilient, regenerative, and addresses the well-being of the community. A focus on partnership – we are first and foremost partners with our clients and the cities in which we work – we are strategic thinkers, designers, and implementors.

Focus in these four areas has served us well before and during this COVID 19 environment, where our approach has always been one of renewal and regeneration. This focus has served our clients, our communities, and our cities well.

The virus has also pushed demand for sustainable living one step further, as revealed by AMLI’s 2020 Sustainable Living Index. Close to 5,000 AMLI apartment residents were polled, of which 83% consider living in a green apartment is beneficial to their health, a 3% increase over 2019. The Top 3 green features mentioned were fresh air initiatives, energyefficiency savings on utilities and smoke-free living.

The survey also showed that 71% of residents place an increased value on the healthy building features in their apartment communities. Moreover, 41% believe they will be working more hours at home in 2021. These evolving preferences are certain to have a lasting impact on construction design.

A shortage of construction labor has been an equally lasting issue, and COVID-19 did little to change this reality. For every five individuals retiring or leaving the industry in Atlanta, there is only one person coming in. ( )

What development advantages come from Opportunity Zones in the area?

Opportunity Zones are a community and economic development tool that aims to drive long-term private investment into underserved communities throughout the country. The program works to encourage developers to invest in local business, real estate, and development projects in exchange for a reduction in their tax obligations. Atlanta has more than 25 Opportunity Zones, many of them in the south and western portions of the city. As strategists and designers, we’re active in a few of the zones across the city, helping our clients realize positive impacts for our local communities and developer clients. We’ve also created partnership opportunities for our university and developer clients to achieve multidimensional impacts that benefit both “town and gown.” These areas of the city are poised for investment, long-term growth, community engagement and are catalysts for change. www.capitalanalyticsassociates.com

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Market voices: Architecture

Craig Anderchak Principal NELSON Worldwide

Pre-COVID-19, the Atlanta market was the strongest it has ever been.

Although we have seen a temporary dip in business, I think that will return postCOVID-19. Atlanta is still on track to double in population in the next few years.

The big trend is to look at existing assets and repurpose and upgrade them, not only in terms of aesthetics and design but also with a focus on end-user wellbeing. We are fortunate in the Southeast that we are seeing so much growth. I think we are all in a very good position.

If you look at the things that have traditionally been the knocks on Atlanta, such as limited public transit and a lack of high-density housing, these are things that people today see as positives in the COVID-19 environment. In contrast, the suburban lifestyle and the relatively inexpensive single-family homes are gaining traction. The strength of Atlanta is the same as it has always been: a highly business-friendly community, a relatively low cost of living, a strong talent base provided by Georgia Tech and other universities, to name a few perks. There is a continuous inflow of people into Atlanta and that is predicted to continue.

Stephen Swicegood

Principal, Southeast Region Client Relationships Leader Gensler

Chuck Hull Principal Smallwood

We try to find ways to be more efficient in construction. After COVID-19, anything can happen and it has shown everyone that your whole world can suddenly change. Buildings are objects that are designed to last for the long term, regardless of the changes that come within that time frame. We are exploring ways to design a space that still delivers an experience, in a more flexible way, with less hard construction, such as demountable systems or furniture that can easily be moved around. Our clients are increasingly interested in these alternatives, as the design tends to be timeless can be adapted to the new, changing circumstances.

We want to avoid obsolescence through flexibility.

One of the real touchstones of New Urbanism is what we call the transect.

It’s basically just acknowledging that there is this spectrum between true nature and the most urban place that you can imagine in any given setting. Wherever you are, whether you are developing a new place or redeveloping an old one, you fall somewhere on that spectrum, and there are certain attributes that apply in that setting. The balance has to do with where you are on that transect. In a more urban setting, nature is obviously extremely important.

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Bill Tunnel

Founding Principal TSW

CONSTRUCTION OVERVIEW

( ) In response, the construction industry is Financing trends exploring several pathways, as outlined by media When COVID-19 hit, construction loans hit the pause platform Bisnow. First, it is looking to push education button as the dust settled on whether the activity on and training programs that encourage the future both the private and public fronts would continue or workforce from as early as high school to build a come to a halt. The virus’ ripple effects were also unclear career in construction. Second, alternate construction across asset classes, with the possible exception of retail methods are gaining ground to drive costs down, and hospitality, the hardest-hit sectors throughout the particularly component prefabrication and the use of ordeal. alternate materials. Third is technology. Automation Moreover, banks had their hands full unrolling and the use of machines to fill the labor gap is expected federal aid programs such as PPP loans and the CARES to become commonplace, especially in an industry that Act, which diverted attention toward construction has traditionally lagged behind funding. Six months into the the adaptation of innovation pandemic and with rock-bottom compared to other industries interest rates, construction loans such as automotive or aviation started picking up. On Aug. 31, and aerospace. Fourth, recruiting 2020, Santander Bank provided more women into the industry a $54.7-million construction hits two birds with one stone as loan to revitalize Atlanta’s SoNo it addresses both the talent and district with a 284-apartment, gender gap the industry is facing.

16-story building to be built by A fifth factor could be Atlanta Woodfield Development. It is Keith Johnson itself, and its attractiveness to the first residential tower to be Brasfield & Gorrie a younger generation of talent, developed in the area since 2010. said Keith Johnson, group president of Brasfield One month later, Santander Bank did it again, this time & Gorrie. “Atlanta has a very diverse and exciting with a $45.7-million construction loan to Toll Brothers construction market. It is the largest single market Inc. and JD Capital USA’s joint venture for a 290-unit served by Brasfield & Gorrie, and the volume, size and luxury apartment community in Decatur, called Motto. complexity of the projects in areas like Downtown Lender confidence in Atlanta’s construction activity is and Midtown make it stand out from other cities that unwavering. Case in point: in October 2020, Arkansaswe serve around the country. The opportunities are based Bank OZK awarded a $180-million construction widespread in both the private and the public sectors. loan for Mailchimp’s new Beltline Eastside Trail HQ, This diversity of professional opportunities as well as the largest of the year. The $1 billion midrise office all that Atlanta has to offer socially is drawing college towers will be developed by New City LLC and equity graduates and young professionals to the region. partner Lamb Properties LLC.

Atlanta is a very diverse and exciting construction market.

Chris Bontrager Business Unit Leader DPR Construction

How would you characterize 2019 and the beginning of 2020 for DPR in the Atlanta region?

We were off to a great year, with 4Q19 and 1Q20 the best two back-to-back quarters we have experienced in the Atlanta market. This is a result of a healthy backlog of projects with solid business deals combined with a high level of execution by our project teams. We have a good, diversified base of projects including healthcare, education, advanced technology and private commercial work. The sales year started strong seeing opportunities across all our core markets of healthcare, higher ed, commercial, advanced technology, and life sciences.

We have begun to tap into the industrial sector because we are now seeing more industrial manufacturing and logistics facilities across Georgia. We hit almost 60% of our 2020 sales goal in the first quarter.

The COVID-19 crisis was completely unpredictable which has caused significant disruption to the economy.

We continued to see success in the healthcare sector through March and April but some of the private commercial work was put on hold. So far, we have weathered the storm very well.

Compared to similar markets, how would you characterize land availability and costs?

Land prices in Downtown and Midtown Atlanta have seen significant inflation over the last several years.

Construction costs began to flatten out over the last year but are still north of 3% inflation year over year, which is a little above average. I’m not sure how steep this correction will be but it would be beneficial to the overall market metrics to see some correction in terms of land prices and construction costs to take the pressure off of project proformas. If we see a mild correction with a quick recovery that could produce a nice rebound in the local real estate market.

As a company, we have made a significant investment in prefabrication and virtual design and construction.

We see the industry going in a more modular direction with prefabricated construction.

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Housing in Atlanta is considered affordable as compared to other Metropolitan areas like Miami-Dade.

Residential trends Atlanta’s dire need for affordable housing has also ensured a steady infusion of pipeline projects to keep the construction sector busy. On Aug. 26, Invest Atlanta announced the go-ahead for 209 units of affordable multifamily housing.

As part of Invest Atlanta, the Urban Residential Finance Authority’s (URFA) Board of Directors approved a $22.5-million tax-exempt construction loan for this project, to be developed by KCG Development LLC. It will include 43 units at or below 40% Area Median Income (AMI), 133 units at or below 69% AMI and 33 units at or below 80% AMI. The project is a continuation of the agency’s efforts to provide affordable housing that can be traced back to early 2019. By using a combination of long-term ground leases, land trust models and layered financing strategies, Invest Atlanta was able to greenlight three affordable housing ventures in January 2019, which include nine single-family homes and a 130-unit multifamily development, Hartland Station.

CONSTRUCTION OVERVIEW

The latter is a $28-million apartment project located close to Fort McPherson and is also one of the largest spurs of affordable housing development the Gate City has witnessed since 2010.

The focus on affordable housing also crosses into the regulatory sphere, says Michael Paris, president and CEO of the Council for Quality Growth. “While a multitude of factors influence housing prices, we can make a difference on the regulatory side in terms of tearing down roadblocks to that end. We tackle issues that inhibit the ability of a builder or developer to produce an affordable unit for service workers to be able to live in the communities where they provide those services. For example, we are working with the city of Atlanta to help identify all the regulatory costs of development. Large, complex cities, such as Atlanta, have compound fee structures that can be a major hindrance when it comes to producing affordable or attainable housing,” he said.

Still on the supply side, Yardi Matrix’s Multifamily

Report Summer 2020 evidenced that by June, urban Atlanta had more than 8,600 units underway. Midtown West/Centennial Place and Grant Park/East Atlanta/ Panthersville were the busiest areas, with 3,656 and 1,456 units underway, respectively. In the suburbs, more than 4,300 units were under construction, with Lawrenceville witnessing the most intense activity with 1,483 units, closely followed by Suwanee/Buford with 1,086 units.

Commercial trends In November 2019, the I-75 South Corridor led the Atlanta region in new industrial space under construction, according to Cushman & Wakefield’s quarterly industrial snapshot. The area covering the corridor is seeing 4.4 million square feet of new industrial space under construction, which amounts to 27.5% of the total space under construction in metro Atlanta. The pipeline includes Gardner 42 in Locust Grove, building 900 at Gillem Logistics Center in www.capitalanalyticsassociates.com

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Janet Simpson President & CEO tvsdesign

What is tvsdesign’s contribution to the Atlanta market?

We are an architecture and interiors firm, focused on commercial work. The firm was founded in 1968 in Atlanta. Five decades later, it has grown into an international firm owned by all of its members. Our footprint extends over a wide variety of markets, primarily: public assembly, including convention, cultural and sports arenas; healthcare; hospitality; corporate office, workplace interiors, retail and mixed-use. Our work in Atlanta is focused on helping this community become one of the fastest growing economies and a major destination for conventions and commerce.

How has your project approach changed as a result of the pandemic?

We talk a lot about what COVID-19 has accelerated. We have seen this with trends that were already happening prior to the outbreak, such as smart technology, technology platform interaction with the built environment, touchless technology and experience enhancement, to name a few. The virus accelerated technology platforms as an integral part of what we need the built environment to do for us. In the blink of an eye, our primary workplace became a digital workplace platform, replacing the traditional office space. The pandemic has highlighted and brought into clear focus the need to be pandemic-prepared. Several things were already integrated into design, such as accessibility, need for daylight and the need for fresh air. The pandemic-prepared requirement is teaching us that what we want to avoid in the future is the need for a shutdown, not knowing how to handle it and going to the sidelines while we deal with it. How air moves through a space and air filtration system quality, the zoning of it and restroom design are gaining heightened prominence on the design front. The way the latter is designed for commercial use is one of the greatest areas of concern.

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During the COVID-19 Pandemic construction was one of the services deemed essential and allowed to continue.

Forest Park and site 500 in Greenwood Industrial Park.

Avison Young’s 2Q20 Retail Market Report revealed that retail construction activity was tempered in the quarter, with 393,854 square feet underway, a significant drop from 2Q19 numbers that showed close to 600,000 square feet. Approximately 34,000 square feet were delivered in 2Q20 for a 12-month total of 466,537 square feet of new inventory. It is clear developers have hit the pause button in the retail space, waiting for uncertainty to dissipate on the full extent of the pandemic’s retail market impact.

Looking ahead Being labeled an essential sector amid the pandemic supported the construction industry in 2020, but strong underlying fundamentals in the region and a healthy backlog of projects prior to the panemic portend prosperity going forward. A strong real estate market will also help. “The construction industry is strong in our region. I think that will continue. Construction Market data tell us that we will rebound by 2022 to the level of work we saw in the record year of 2019. So, that validates what I know about the Atlanta construction market,” said Mike Bartlett, executive vice president of JE Dunn Construction. “We are suffering through a health-based crisis not an economic-based crisis. We just need to get the health issues resolved and let the economy take off again.”

Planning ahead: Regional infrastructure plan sets the course for an expanding population and economy With the ninth-largest public transit system, the convergence of three major interstate highways and the world’s busiest airport, the Atlanta region can boast it is a de facto transportation hub and a major logistics center in the country. To cope with the region’s intensive demographic and economic growth, the Atlanta Regional Commission drafted the Regional Transportation Plan, designed to tackle the growing population, more extreme and frequent weather events, a dynamic employment sector and the ongoing shift in travel choices. In other words, improving mobility, access and safety under a sustainability framework. The plan anticipates a 30-year, $172-billion investment into key areas including demand management, transportation infrastructure expansion as well as its maintenance and modernization.

A major piece of the sustainability puzzle is the $26-million Bellwood Quarry Reservoir and Green Space Project. The first phase consists of setting the stage to unlock 25 acres of the park to public accessibility. That is the first step of a larger plan to give birth to Atlanta’s largest green space, extending over 280 acres. It is the prelude to the Atlanta BeltLine,

which encompasses 33 miles of multi-use urban trails, 5,600 units of affordable workforce housing, 1,100 acres of environmental cleanup, 1,300 acres of green space, 46 miles of improved streetscapes, the establishment of the largest outdoor public art exhibition in the South, 22 miles of pedestrianfriendly rail transit, 30,000 permanent jobs and $10 billion in economic development. It is designed to become a catalyst for equitable, inclusive, and sustainable city life.

Smart city Atlanta is also set on fully capitalizing its status as a tech hub supported by a strong university network and the presence of a bevy of technological companies. As highlighted by the Metro Atlanta Chamber, the area is fully embracing the smart city transition under a three-pronged vision: sustainability, mobility and connectivity.

The city of Atlanta is emulating this push by adopting five core pillars: multimode transport, public safety, the environment, city operations efficiency and citizen/business engagement. The key to these pillars is to leverage data analytics practices www.capitalanalyticsassociates.com

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CONSTRUCTION OVERVIEW

to make better-informed decisions to the benefit of residents, visitors and businesses alike. A datacentric model unlocks descriptive, prescriptive and predictive capabilities to the betterment of the city’s overall operational efficiency, service delivery and transparency, according to Georgia Tech, a partner to the city on its Smart City plans.

West Midtown is a trendy neighborhood in Atlanta seeing lots of luxury mixed-use developments.

Utilities A strong infrastructure that delivers reliable utility services are fundamental to business attraction.

Georgia prides itself on providng a modern service that is prepared to ramp up with demand. The state and the metro Atlanta region boast a transmission and distrubution network that includes clean, affordable electricity and natural gas. This reliable availability of electrictiy is particularly important in Atlanta, where tech companies and other integral industries can’t afford to halt mission critical systems.

Georgia Power is the leading power supplier in the state, extending over 75,972 miles of electricity distribution lines and providing the resource to close to 2.6 million people. In September 2020, the power provider was named “Top U.S. Utility for Economic Development” for the 22nd consecutive year by Site Selection Magazine, joining the select club of 20 utilities to win this accolade from among 3,300 counterparts across the country.

The Georgia utility regularly partners with state and community organizations, which in 2019 resulted in assisting 99 companies with their business relocation and expansion projects, creating more than 16,000 jobs and retaining $5.2 billion in capital investment in the process. ( )

INFRASTRUCTURE INTERVIEW

Not for profit Co-op energy provider looks to provide reliable electricity at a lower rate

Peter Heintzelman President & CEO – Cobb EMC What is Cobb EMC’s role in Atlanta’s energy market?

Cobb EMC is a cooperative. EMC means “electric members corporation,” which means it’s a democratically run institution, run by the seven coop members. We are a not-for-profit and we are here to serve our members and the community. Our job is to provide reliable electricity at a lower rate, and we do other things as well. People look to us to be a leader in the community, both as an employer, someone that creates economic development and someone who can possibly impact the community via our foundation.

We are also the owners of Gas South, which is one of the Southeast’s leading gas marketing companies.

We are very proud of that team, as they run a leading gas marketing company, but also have Fuel for Good, which aims to give 5% of its income to children in need.

What were the company’s main achievements during the last year?

One of the things that differentiate us from for-profit utilities is that we have a great deal of flexibility to serve our members. We are proud of our increased activity in economic development. The county is pleased to have ThyssenKrupp and we were able to provide a service offering that meets all of its sustainability goals. We were able to give the company carbon credits, as well as one of our smart flowers.

The thing that we are most proud of has to be our campus solar battery project, which involves almost 1.8 megawatts of solar rooftops and parking canopies.

It involves three solar flowers that follow the sun all day and close at the end of the day. Not only does the campus provide us with solar power but it also demonstrates our commitment to sustainability. It’s also an educational tool.

What is the scope of your newly launched Fiber South project? How has the pandemic affected it?

Fiber South is a really interesting project for us; it’s a startup within a company. The landscape we’re in is temporary from a long-term infrastructure product perspective but it certainly has highlighted the greater need for broadband in our state. The rollout of Fiber South is based on the fact that we already had a fiber network installed for the purpose of electric operations reliability. One of the reasons that we are the third-most reliable utility in the nation is because we have invested in our infrastructure, we have a lot of electronics in our grid and those need to communicate quite a bit. We built a fiber optics network for that, with some extra fibers in it. We are going to use the extra fibers on that existing network to offer that service to customers. www.capitalanalyticsassociates.com

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Kevin Greiner President & CEO Gas South

What differentiates Gas South?

This starts with having a good gas trading team. We move a lot of volumes, so we need to ensure we have a variety of supplier relationships and the ability to schedule gas deliveries through interstate pipelines effectively.

Keeping our own gas costs low and identifying trading opportunities are paramount for being able to offer competitive prices to our retail customers.

The second factor is having technology we can use to serve customers, such as a well-functioning customer care and billing system, supported by customer care and account management teams that are committed to providing an amazing customer experience. A big part of our success is also centered around having a great sales and marketing organization, that ensures that we’re present whenever and wherever customers are making decisions on an energy supplier . A final source of differentiation for us is our reputation, brand, stewardship and community engagement. We try to develop good, trustful relationships with our customers, suppliers, and business partners.

How is an increasing focus on renewable energy generation impacting your business?

In March, Gas South became involved in some solar projects, allowing us to experiment with different types of renewable energy as well as generating financial benefits. We have carried out one project so far in conjunction with our parent company Cobb EMC, which is a not-for-profit electrical utility serving about 200,000 members in northwest metro Atlanta. We partnered with them on a project covering their entire campus, including office buildings, truck yards and a parking lot – in total about a 1.8 megawatt system. This incentivized us to look for other renewable projects and we began working on a community solar project in the state of Minnesota. We are looking forward to getting involved in more opportunities closer to home, in Florida, Georgia and the Carolinas. Solar has become so much more cost-effective in recent years.

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( ) Georgia Power’s generation mix includes nuclear, coal and natural gas on the conventional side, as well as solar, hydroelectric and wind on the renewable energy side.

Only 6 to 8% of its power comes from renewables, however. The region is taking its energy transition to a whole other level as it has pledged to go 100% renewable by 2035. The plan includes a mixture of energy efficiency practices and increased penetration of solar power at different scales – utility, industrial, commercial and residential.

On the water services side, the resource is provided by the city’s Department of Watershed Management (DWM), which is primarily focused on water distribution and maintenance under the direction of city officials.

In early April 2020, the DWM tackled a long-standing grievance of the neighborhoods of Peoplestown and Summerhill relating to flooding and sewage overflows, stressing declining water infrastructure and posing health risks. The solution was to look to nature by installing “bioretention” cells able to filtrate up to 750,000 gallons of stormwater. The pilot project was the first of its kind in the state. DMW’s Strategic Plan 2022 established the blueprint for the utility in 2019 to establish eight priorities: service delivery; infrastructure reliability; workforce development; operational efficiency; financial resilience; compliance; smart utility; and safety.

Looking ahead Despite the ravaging impacts of COVID-19, Atlanta remains on track to deliver on its promise of growth by tackling the different fronts that are critical to accommodate it. Construction and good infrastructure planning remain vital parts of the ambitious vision to materialize the city of tomorrow, parallel to a sturdy utility infrastructure, developed under the premise of long-term sustainability.

The road is sinuous and dotted with challenges that the region needs to overcome, including filling talent gaps, lowering construction costs, bolstering affordable housing, materializing the city’s energy transition toward 100% renewables and establishing an organized urban sprawl that guarantees accessibility and mobility for all.

Atlanta is not a city to back down from a challenge and it is fully intent on maintaining the long-standing growth it has witnessed over the years. It is working full steam ahead to become a national reference for both sustained and sustainable growth, fueled by technological innovation and an ambitious outsidethe-box mentality.

Transportation & Logistics: The pandemic’s acceleration of consumer trends in e-commerce is among the factors that have bolstered the metro Atlanta region’s reputation as the logistics and distribution heavyweight of the Southeast. With the world’s busiest airport, anchored by Delta Airlines, and its proximity to Port of Savannah, the future looks bright.

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Easy access: Having the busiest airport in the world helps solidify Atlanta’s reputation in the air, on the road or by rail In a year marked by shelter-in-place measures, quarantines, social distancing, and a rapid shift to the digital landscape, Atlanta inadvertently experienced fewer traffic woes in 2020. Less travel created both challenges and opportunities for the region’s transportation, aviation and logistics sector.

While the coronavirus pandemic pressed the brakes on large economic engines, such as the HartsfieldJackson Atlanta International Airport, it also bolstered demand in the logistics and distribution sectors thanks to the greater reliance on e-commerce.

Overall, the pandemic helped polish Atlanta’s reputation as a logistics hub, which will carry the Peach City forward as consumers slowly regain the confidence to visit the region for either work or pleasure.

Hartsfield-Jackson Airport The Hartsfield-Jackson Atlanta International Airport, consistently the world busiest airport, has looked quite different since the pandemic made its way stateside in March. The airport sees over 110 million passengers each year and employs more than 60,000 people, making it the largest employer in the state 112 | Focus: Atlanta 2020 | TRANSPORTATION & LOGISTICS

of Georgia. For 2020, the airport projected a 3% increase in passenger traffic, or about 113 million passengers, General Manager John Selden told Focus: Atlanta. But in March, the pandemic drove those projections into a nosedive that will take years to return. In April, the airport’s 300,000 daily passengers dropped to about 9,000 in a few weeks, or a 97 percent drop, Selden said. Overall, in the first quarter of 2020, the Atlanta airport saw 20.7 million passengers, down more than 18% from the same period last year, according to CNN. The challenge for airports are their large fixed costs, such as security, storage and maintenance, even without any revenue stream. The focus for airports now is on helping passengers feel safe through thorough cleaning and maintenance, as well as on reducing the incidences of crowding and queuing for the remaining passengers. Added to the fixed costs, there are additional expenses for airports, such as plexiglass, extra sanitizing stations and extra cleaning crews. Major airports such as HartstfieldJackson are also implementing the latest in touchless technology to minimize contact with surfaces in the new post-Covid world. ( )

TRANSPORTATION & LOGISTICS INTERVIEW

Adapting The world’s busiest airport is restarting its engine and moving ahead with its 2030 master plan

John Selden General Manager – Hartsfield-Jackson Atlanta International Airport How did you adapt to the sudden change in expectations for 2020?

We were the busiest airport in the world in 2019, with over 900,000 flight operations and over 110 million passengers. The closest airport to us was Beijing, with over 100 million passengers. In the first two months of 2020, we were probably looking at a projected year of about 113 million passengers, or about a 3-4% gain if the summer turned out well. We were rolling. We had numerous projects in the works to handle the increase in capacity. You might think that 3% is not that much but that is about 4 million passengers. It’s a big number.

Our airfield is incredibly capable. We run 2,600 flights a day, and we can get 3,600 flights a day right now with our five runways, without delays, but the terminal was constrained. We were looking at ways to improve that during January and February, looking at customer demand and the airlines and making it work. We had a bright future in front of us.

Then it happened. In March, our passengers and our throughput basically took a nosedive. And on April 4, we went from around 310,000 passengers a day to 9,000. Our flights went from 2,600 a day to 250. But we are slowly regaining our customers. Their confidence is coming back and now, pent-up demand is there. We really believe that the things we put in place with our partner airlines, the TSA and the FAA are helping recover the industry. Hartsfield-Jackson is a tremendous economic engine for the city. We are restarting that engine.

How has the airport worked to support the airlines?

Not only have we supported our airline partners, we’ve also supported our concessionaires. We have 340 stores in our building that generate over a billion dollars in gross revenue. We have taken a hard cost model and reduced our concessionaire cost to almost free. They

don’t pay rent, they pay us a small portion of their sales.

We’ve also given them free storage and free parking. For the airlines, we have reduced our costs, including rents and landing fees. We are subsidizing all expenses that the airlines normally pay.

What impact has the situation had on the airport’s 2030 master plan?

Every project we had on the drawing board that was started is going forward. Due to the reduction in our operations and passenger numbers we’ve been able to ramp up construction. As a result, we’re accelerating the expansion of our security checkpoints, we’re building pedestrian bridges to connect to our parking garage and we’re building five additional gates. All the other projects are also still going forward. www.capitalanalyticsassociates.com

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TRANSPORTATION & LOGISTICS OVERVIEW

( ) To help stop the bleeding, The airline industry nationally received $29 billion in grants for payroll support, with $25 billion going to passenger carriers and $4 billion to cargo operators. The legislation also allows for $25 billion in loans or loan guarantees, which several airlines have indicated they would tap into. Airports in Georgia received about $411 million in CARES Act funding. But by October, as the airlines and cruise industry continued to burn cash at an alarming rate, President Donald Trump floated the idea of a new stimulus aimed at a select few industries, including tourism.

The lull in normal passenger traffic, however, fueled key infrastructure projects for HartsfieldJackson Atlanta International Airport as fewer passengers permitted the shift from overnight to daytime construction, allowing for more construction time. As a result, capital projects such as security gate expansions and building of pedestrian bridges with connection to the parking garages accelerated dramatically during 2020. This disruption in travel also allowed the airport to revamp its 12,390-foot runway and taxiway.

The work is part of the airport’s $6 billion ATLNext capital improvement plan implemented in 2016.

The 20-year plan includes terminal modernization, an expansion of its cargo capabilities, parking improvements and a planned hotel and travel plaza.

Key for the logistics industry is the airport’s blueprint for its cargo operations. The expansion of facilities has the goal of adding up to 1 million square feet of warehouse space, adding a vehicle staging area to relieve cargo truck congestion and adding parking capacity for cargo aircraft and vehicles, according to the airport website, the work is expected to total more than $200 million in upgrades and is expected to be completed in 2021.

Airlines themselves have been those to feel the greatest pain from the pandemic. Delta, whose hub is Hartsfield-Jackson, reported a nearly $5.4 billion net post-tax loss in the third quarter as a result of running operations at around 20% and burning cash through fixed costs. In October, Delta and the union that represents its pilots reached a preliminary costcutting agreement that would avoid furloughs until Jan. 1, 2022. Similarly, competitor Southwest Airlines said it wouldn’t pursue furloughs this year but asked its workers to take 10% pay cuts to avoid cuts through 2021.

of Savannah, nonetheless, plays a key role in helping make the area a logistics hub. Easily reached by rail from Atlanta, the port has become the busiest export hub in the country. It’s the third-busiest container gateway in the United States. After the addition of a second planned container port and other expansions are completed, the port will have a total capacity of 11 million twenty-foot container units (TCUs). Port of Savannah moved a record 4.5 million containerized units in fiscal 2019.

Port of Savannah While not actually part of the Atlanta region, the Port

Prior to the COVID-19 pandemic, Atlanta’s public transportation services accommodated over 500,000 people daily.

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E-commerce In many ways, Atlanta’s logistics and transportation sector serves as the veins and arteries of the local and state economy. While the travel and hospitality sectors hemorrhaged through reserves and resources as the pandemic ruptured 2020 projections, the

TRANSPORTATION & LOGISTICS OVERVIEW

Karl Von Hagel Airport Manager – Cobb County International Airport Fractional ownerships and charters pre-COVID-19 were showcasing healthy growth rates, which only translates well for us at the airports because we see all those fractional ownership or chartered aircraft coming in and picking up passengers from our airport. Those are the businesses that are going to grow in five to 10 years and decide to purchase their own jet fleet, knocking on our door for a place to keep it. That is where we need to maintain our forward-looking thought processes as it takes a considerable amount of time to get things done within a public environment.

Atlanta has six major interstate highways, supporting its connectivity acceleration of e-commerce trends pumped new lifeblood into the economy while bolstering the demand for industrial space in the region.

Six major interstate highways, I-20, I-75, I-85, I-285, I-575, and I-675, connect residents and products to their destinations. Atlanta has steadily maintained a core industrial market, largely due to its robust transportation and logistics sectors and highway system. The region competes head to head with major metros in the nation. Parallel to that, the greater Atlanta area is experiencing a tremendous population growth and a relatively good state GDP expansion thanks to its sound business climate and dedicated efforts to diversify the local economy.

In 2020, e-commerce behemoth Amazon, as well as third-party logistics companies and food distributors, were in high demand as the pandemic drastically accelerated consumer behavior and www.capitalanalyticsassociates.com

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Shannon James Sr. President & CEO Aerotropolis Atlanta Alliance, Inc

What have been the major developments in the last year for the Aerotropolis?

Starting with our core, which consists of College Park, East Point, Hapeville, Atlanta, Forest Park and Unincorporated Clayton County, several projects moved forward ranging from industrial to mixed-use.

The Diamond @ College Park, located in the heart of Downtown College Park, will include 14 townhomes, 18 lofts, retail space and 61 housing units with a mix of affordable, market and above-market options. Porsche Cars North America, located in the Aerotropolis Corporate Crescent, will develop a multi-million dollar Classic Restoration Factory on 33 acres at the northeast corner of Hartsfield-Jackson Atlanta International Airport. Several large logistics companies ranging from Amazon to Home Depot have located regional hubs in East Point and Union City, bringing several hundred jobs for local residents. City of Atlanta (HartsfieldJackson) released RFP’s for airport-owned land around the immediate area for development.

What industries and businesses are you engaging?

Our Blueprint 1.0, adopted in 2016, quickly recognized the need to focus on retention and recruitment efforts in aerospace, logistics, food and agri-business, bio-life sciences and multimedia production. We’re working hard to support these industries as they remain and enter the market; however, industry diversity is key to create a thriving ecosystem. I’d like to see growth in advanced manufacturing, information technology, financial technology and esports.

What is your prognosis for economic recovery over the next 12 months?

There are so many dynamics that could influence the pace of recovery; however, I think this will be a short (six to 12 months) but severe recession. Proper resources and training will be needed for businesses to sustain and people to rebound appropriately.

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Atlanta is known as the “city in the forest” as 48% of the metro area is covered in trees.

online shopping patterns. According to Colliers International, Atlanta’s industrial real estate market absorbed its third-highest quarterly amount of space ever in its history at 8.4 million square feet in the third quarter of 2020. Amazon, the largest online retailer in the world, accounted for just over 35% of total net absorption in Q3, most of which was occupied in South Atlanta, namely in the Hartsfield-Jackson airport/I-85 submarket, the commercial real estate brokerage reported.

Amazon’s focus on Atlanta makes sense as it seeks to position itself as a regional hub for the Southeast.

The e-commerce giant has been building or leasing along the I-85 corridor, which runs north to south through the metro area, and in 2020 it is expected to open new delivery facilities in cities such as Atlanta, Buford and Fairburn. Amazon’s growth in the region also serves as a direct benefit to residents as its expansions create hundreds of full- or part-time jobs paying a minimum of $15 an hour.

Aside from Amazon, expansions by companies such

TRANSPORTATION & LOGISTICS OVERVIEW

as Mondelez Global, Nouhas, Nestle Purina and Delta helped the South Atlanta area achieve its highest quarterly absorption ever, Colliers International reported in its Industrial Market Report 2020 Q3.

The boom in e-commerce could likely drive investment opportunities in the Atlanta market. Large occupiers appear to be looking toward new, Class A facilities, JLL noted in its Industrial Insight | Q3 2020 report. Of the total move-ins during Q3, 62% were in buildings built since 2019, according to JLL. There are more than 18 million square feet of industrial space under construction providing tenants options as they seek to expand or relocate operations into the Atlanta market. Almost 5 million square feet of industrial space was delivered in Q3. However, despite the number of speculative deliveries in the quarter, vacancy rates stood at 7 percent, down 9% quarterover-quarter and 3% year-over-year, JLL reported.

Demand for industrial space as a result of the e-commerce acceleration is expected to remain hot throughout Q4 and heading into 2021. Atlanta headed

into the fourth quarter with many tenants surveying the market and more than 4 million square feet of new deals expected to start before the conclusion of the year, according to JLL. More than 6 million square feet of new inventory is expected to be delivered in the coming months, meaning Atlanta’s supply is expected to keep pace with the increased demand.

MARTA The Metropolitan Atlanta Rapid Transit Authority (MARTA) is the principal public transport operator in the Atlanta metropolitan area. It was established in 1971 by Fulton and DeKalb county voters and is funded by fares and taxpayer money. The transportation system is funded with a 1% sales tax in Fulton, Clayton and DeKalb counties and federal funds. Before the coronavirus outbreak, its 101 routes served about 500,000 people.

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In March, ridership on trains and buses fell 68% and 54%, respectively investment of MARTA. The aim is to expand the system to foster significant connectivity, accessibility, better mobility and economic development across the region.

The ultimate goal is to connect the key areas of the city that are underserved by public transportation and provide riders with connectivity to key destinations such as employment centers, medical centers and schools throughout the region.

In March, ridership declined 68% on trains and 54% on buses as a result of the pandemic and its initial aftermath.

In April, MARTA announced its Essential Services plan, shifting focus to service its busiest routes in an effort to prevent overcrowding. The authority reduced service to 41 bus routes and doubled buses on 34 of the busiest routes. “This Essential Service plan will serve the largest number of people and with these important destinations in mind, provide as much coverage in our service area as possible,” said MARTA General Manager and CEO Jeffrey Parker in a statement on the MARTA website. “This was not an easy decision. I know it will have a negative impact on many bus-dependent areas, but it is necessary to keep MARTA operating and allow space on our busiest routes for customers to practice social distancing.”

MARTA, similarly to Hartsfield-Jackson Atlanta International Airport, saw wins in its strategic plans as the pandemic progressed. In July, Clayton County celebrated the opening of a new bus transit hub at the Clayton County Justice Center in Jonesboro. This marks phase one of transit improvements slated for the Clayton County Justice Center. The new transit hub will serve four bus routes with 800 daily riders and features enhanced bus stops and shelters, park and ride spaces, and improved walkways and crosswalks.

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The MARTA rail network is a part of Atlanta’s public transit system and has four service lines.

barriers, and digital signage showing bus arrival times.

In August, the Federal Transit Administration awarded MARTA a $13-million grant for a multipurpose Operations and Maintenance Bus Facility in Clayton County. The facility will include a MARTA police precinct, training and maintenance areas, operations and administration offices, critical bus maintenance infrastructure and support 31 bus routes and over 250 buses. “We recognized the need for this project several years ago and have been steadily advancing it since,” Parker said at the time.

The facility will be strategically located in northern Clayton County and it is slated to reduce what are known as deadhead costs, or the distance a bus travels without customers. “The overwhelming majority of Clayton County voters who supported MARTA did so with the understanding that jobs and economic development were part of the equation,” said Clayton County Chairman Jeff Turner. “This is an important step—and one we must celebrate—on the path to this project becoming reality and bringing 650 jobs and vibrancy to Forest Park.” The estimated total cost of the facility is $116 million with a completion date goal of 2026.

Overall, in 2020 MARTA installed 19 new bus shelters

TRANSPORTATION CONSTRUCTION & LOGISTICS OVERVIEW

Jeffrey Parker General Manager & CEO Metropolitan Atlanta Rapid Transit Authority

and upgraded 17 bus stops, with a goal of improving 150 bus stops over a 5-year period, the authority reported.

Looking ahead Moving forward, flexibility will be the guiding principle for Atlanta’s airports and transit providers. Though the pandemic dealt a furious blow to revenues, the fact that capital projects kept going in the pandemic landscape showcases the region’s resilience and key moves to position itself for success in a post pandemic environment.

A clear winner in 2020 is the logistics and distribution sector. The sector is ripe for continuous success as consumer behaviors are likely to be perpetually influenced by the speed and convenience provided by e-commerce.

Atlanta’s population growth is the cornerstone of the region’s logistics and distribution sector and will continue to drive company expansion and relocation decisions. It will take years for the travel and tourism company to reach pre-COVID highs but the pandemic’s acceleration of consumer trends in e-commerce will carry Atlanta to new heights while continuing to solidify its reputation as the logistics and distribution heavyweight of the Southeast.

How did MARTA react to the pandemic outbreak?

Our goal from the onset of the pandemic has been to protect the health of our customers and employees.

Requiring masks and making them readily available was the solution that made the most sense. Free masks are available at every rail station and on every bus in the MARTA fleet. Station Agents and Transit Ambassadors (re-assigned administrative staff) have distributed more than 865,000 masks to customers in rail stations and bus bays. Observed mask-wearing on buses and trains is now in the 90% range.

MARTA also uses state-of-the-art electrostatic sprayers to thoroughly clean all buses, trains and facilities. The sprayers disperse a fine mist of disinfectant that adheres to all surfaces and dries almost instantly, allowing for multiple midday cleanings. Additionally, all buses are equipped with antimicrobial air filters, mask dispensers and polycarbonate shields around operator cabs.

How has the virus impacted system improvement plans?

Throughout the pandemic, MARTA has continued to move forward with systemwide improvement and expansion plans, including Atlanta’s first bus rapid transit (BRT) line, and adding its first electric buses to the fleet. State of good repair projects including track replacement, escalator/elevator rehabilitation and station renovations. New rail car purchase are also under way.

How is MARTA popsitioned financially, especially given the COVID-19 landscape?

MARTA remains on firm financial ground. Years of sound fiscal management, healthy reserves and federal relief funding from the CARES Act have allowed us to continue to operate safely without furloughs, layoffs, or fare hikes. MARTA received $299 million in CARES Act funding, keeping the agency fiscally solvent through 2024. www.capitalanalyticsassociates.com

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Banking & Finance: Consolidation has both streamlined and strengthened the banking and financial sector, which has also rapidly evolved in the digital realm amid the pandemic. Financial institutions also became ground zero for the Payment Protection Program, while rolling out their own measures to protect clients from the COVID-19 fallout.

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Built for prosperity: Consolidation in the sector has bolstered balance sheets and created a healthy landscape The landscape for Atlanta’s banking system has changed greatly since the Great Recession. Steady consolidation in the sector has reduced the number of banks serving the region, although the number of branches has actually risen since the financial crisis, and has also led to stronger balance sheets. The result is a healthy industry built to withstand the economy’s cyclical nature.

Since 2008, the number of banks in the metro area has fallen by more than 50%, reaching 81 in June 2020, compared with 167 just over a decade ago. In the second quarter of 2020, community banks in the Federal Reserve of Atlanta’s Sixth District, which covers Georgia, Alabama and Florida, registered the strongest asset growth in more than 15 years. Banks have also moved toward more trusted investment vehicles and away from higher risk, higher yield assets.

After the Great Recession, banks in Atlanta and across the country implemented practices to ensure nothing of that scale would happen again, not least the DoddFrank Act. These checks and balances proved to be vital for the health of the banking sector amid the COVID-19 pandemic over 2020. According to the Atlanta Fed, entering the pandemic the reserve quality in the sixth 122 | Focus: Atlanta 2020 | BANKING & FINANCE

district remained healthy. In March, a slight increase in nonperforming loans, changes in retail preferences, the slowdown in the automotive industry, deposit growth and interest rates were all factors banks were keeping an eye on.

PPP rollout As the shutdown of the economy in late March began to ravage Atlanta’s small businesses, authorities had to act quickly to ensure the economy was not decimated.

At the very front line were the local and national banks tasked with handling loan applications and allocating resources. As of August, more than 156,000 businesses across Georgia received approximately $14.5 billion through the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA). Around 1.5 million jobs were saved by the program. But the rollout of the program also was complicated for the banks involved, with many having to set up new infrastructure and work around the clock to process the influx of applications, sometimes with just a few days’ notice.

Forgiveness is available for those small businesses that qualify, but the kinks in the plan were not fully ( )

BANKING & FINANCE INTERVIEW

Better together New branding and purpose prove a key differentiator in the past year after merger of Sun Trust and BB&T

Jenna Kelly Northern Georgia Region President – Truist What has stood out for Truist in Atlanta in the last year?

We announced our merger in February last year and closed it in December. We spent the bulk of the year operating independently as SunTrust and BB&T. This meant we really only had three months as a joint entity before the COVID-19 pandemic struck. All along, we have been talking about how this merger was an opportunity to build a better bank and we looked at how we were better together, including our complementary business lines and strategies.

One of the exciting developments this year was our announcement of the new branding and our purpose.

The Truist purpose is to Inspire and Build Better Lives and Communities. That purpose is at the center of everything we do. It differentiates us, especially given the current circumstances, to our clients.

As you have seen the landscape change, how is the banking industry set up for the future?

The message is that there is a place for everyone, whether it be a small bank, a large regional or a multinational. The impetus behind our merger was the growth of technology in banking. We looked at the demands our clients have in the way they want to be serviced and it is not necessarily walking into a branch anymore. We needed some additional scale and we came together so we could be more innovative and make new investments. This does not mean there is no longer a role for community banks. We believe we have a unique opportunity, however, to leverage our high-touch community bank model with investments in technology to create better client experiences and build more trust – something we call T3.

What role does Atlanta continue to play for Truist in its portfolio?

Atlanta is our largest market, given it was the

headquarters of SunTrust. When we merged, we enhanced our market position. Atlanta is a diversified economy both in industries and population and from a banking perspective, we like where we are in the market.

We continue to invest to strengthen our position.

We have a very long history of supporting Atlanta as well as communities across the state. We announced last year that we would double our commitment to the Atlanta community to $300 million in investments over a threeyear period. The investments include a combination of community development investments from the bank and philanthropic grants from our foundation.

More broadly, the Southeast has been one of the most attractive areas of the country. Those growth dynamics play well for Atlanta, which will continue to attract jobs, companies and population. www.capitalanalyticsassociates.com

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®

oundtable:

Consolidation Leading bankers provide insight into the landscape for further consolidation in the industry while also detailing their thoughts on the various impacts of the pandemic.

Greg Newman

Managing Director Bank OZK

How would you describe the state of loan origination activity during the pandemic?

In late March when the pandemic hit, we saw a slowdown in new loan requests as developers evaluated their situation and hit the pause button on their projects. In July, we saw the activity picking back up as cities in the Southeast began to reopen. Today, in the Southeast, we are seeing activity exceeding pre-pandemic levels.

What factors are you looking at when assessing risk during a volatile economic cycle?

We are consistently very disciplined in our credit underwriting. Our conservative credit principles have served us well over time, through both good and challenging economic cycles. We’ve been in commercial real estate construction lending for a long time, experiencing many different economic cycles and industry disruptions. We’re thinking about the downturns before they occur and we stay true to our conservative standards. That allows us to continue to operate even when our competitors may pull back.

Loan delinquencies were a major factors in 2020. What approach is Bank OZK taking?

In Bank OZK’s 24 years as a public company, we have beaten the industry’s net charge-off ratio every single year, averaging about two-thirds better than the industry’s loss ratio. We evaluate every deal on its individual merits and conduct detailed analysis and economic stress testing. Our developers are highly sophisticated and have a lot of skin in the game, and we add another layer of independent analysis.

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Dan Oliver CEO Vinings Bank

What benefits did the bank derive from handling so many PPP loans across the state?

Early on we intended to help all of our clients, as any bank would have. Within a matter of days, we discovered that some of the local institutions, and I’m probably not referring to community banks, were not responding to their clients. Our phones began to ring off the hook. I determined that we would help them, regardless of where they were, so we’ve actually made PPP loans to companies in many areas of the state of Georgia, not just in Atlanta. We responded to a real need. I saw fairly large enterprises become panicked. I called the CEOs of some of those companies to offer help. They asked me for a quick response and I said, “we’ll do it, if the money is there.” We did not do that with an ulterior motive but because of that, we moved probably over $130 million to $150 million worth of deposits into the bank, almost matching the amount of loans.

How would you characterize the recent wave of industry consolidation and will it continue?

In my opinion, yes, it will continue, and the pace will accelerate. The reason for that is that scale becomes increasingly important as margins decline and you attempt to evolve through a different set of circumstances, in which almost every company finds itself at the moment.

Is it beneficial for the banks? Yes, it probably is, but the Fed is fundamentally the controller of short-term rates. If this were a true free market system, where myself and the institution next door competed openly in a free market and rates were set by supply and demand alone, without central bank interference, it might be better.

BANKING & FINANCE ROUNDTABLE

Sam Tortorici CEO Cadence Bank

What has motivated the rash of banking consolidations across the country in recent years?

There are still about 7,000 banks in the United States even after this merger activity and that leads me to believe there is probably still over-capacity in the industry. Part of what is leading to bank consolidation is the age of management teams and lack of succession planning. Oftentimes, consolidation is motivated by cost reductions or having the scale to spread the technology investment around. In our case, we like where we are following the State Bank merger. Cadence is a mediumsize regional bank approaching $20 billion in assets.

We are large enough to have meaningful scale and be relevant to virtually any kind of client, yet we are still small enough to be nimble, to know our clients and to be able to personalize their level of service.

How do you see the retail component of the banking operations evolving?

The industry has seen branch transaction volume fall off year after year for the past two decades. Not necessarily precipitously, but it has fallen off and that’s just an indication of customer preferences shifting, moving more to digital or online ways of conducting business.

Cadence was an early adopter of Interactive Teller Machines (ITMs), where we have professional, trained people in our call centers who can communicate directly with our clients in a kind of drive-through setting, and they can do virtually anything that a live teller can do. In the weeks following the initial stay-at-home orders, we saw our ITM transaction volumes more than double. We continue to enhance our online offering each year.

Doug Williams

President & CEO Atlantic Capital Bank

How do you see the pandemic impacting the next few years in the banking sector?

I think there will be a lot more confidence in electronic banking, both for consumers and lenders. This will cause an acceleration in the closure of branches with OTC banking becoming minimal. There will probably also be changes in the way we use office space in business, which might have unanticipated implications. This will certainly be a catalyst in changing the way we do business in every sector globally. I am becoming increasingly skeptical that we will see a V-shaped recovery. It will probably be more of a U- or a W-shaped recovery. But there will definitely be a recovery. The big question is where will the casualties be? For the banking industry, this will equate to loan losses because we are only as healthy as our borrowers are. It is gratifying that the Federal Reserve is supporting banks and providing liquidity to the system. I am grateful that there has been significant, fast action, and this will stand us in good stead for a recovery.

How healthy is consolidation in the banking sector?

I think it’s generally healthy, although there are some casualties. Scale is important in banking because we need a lot of capital to innovate and meet the credit needs of our borrowers. Having said that, there are also diseconomies of scale and the larger an institution gets, the more removed it gets from understanding client needs. At Atlantic Capital, we have tried to build the resources and capabilities of a large bank while keeping the structure relatively small so we can be more flexible and responsive to client needs. There will always be an opportunity for small institutions to thrive in our industry. www.capitalanalyticsassociates.com

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From the banking side of the equation, the goal ( ) ironed out before the new system was rolled out due to the speed at which the liquidity injection was continues to be to help customers navigate the required. The loans are also subject to strict audit and landscape imposed by COVID. Many institutions, those found to commit fraud are exposing themselves to especially regional and community banks, have risen huge penalties. According to LexisNexis Risk Solutions to the occasion by putting their own measures in True Cost of Fraud Survey, fraud instances continue to place, including payment deferrals. “We focused on grow, with a spike in the cost of fraud for banks since making decisions that would support our clients and March. In the most recent survey, lenders experienced employees financially while taking steps to protect an average of $3.90 in costs for every dollar lost to fraud, their personal health. It is difficult to predict what the a 13.4% increase since the previous edition of the survey. financial landscape will look like six months from now.

Continued stimulus packages Georgia’s District Attorney has from the government will be already established a Coronavirus vital in providing a safety net (COVID-19) Fraud Task Force and support system for small to identify and prosecute those businesses and entrepreneurs. accessing the funding illegally. Five The CARES Act allowed small business owners in Atlanta Cornerstone to provide around were indicted in connection with a 300 loans to small businesses, scheme designed to obtain over $4 which helped to keep more than million in PPP funding this August.

5,000 individuals employed.

Aside from fraud concerns, The community banking model there are real issues surrounding really came to the forefront for the PPP loan program and the many small businesses and strain it is putting on federal Steven Deaton, Cornerstone Bank entrepreneurs during the last few finances. The federal government has stressed that it is willing to do whatever it takes to months; we found that many prospects reached out to keep the economy liquid and has already spent a historic us for advice and assistance in applying for PPP loans. $2.4 billion through four relief bills. The federal budget It has been an opportunity for us to develop strong new deficit for fiscal year 2021 stood at $966 billion. This business relationships,� said Steven Deaton, president has some in the financial industry concerned about the and CEO of Cornerstone Bank.

According to the Federal Reserve Bank of Atlanta, long-term implications of the program. Unrestrained printing of money by the Federal Reserve will have seven in 10 firms sought financial assistance as the impacts on inflation, which will in turn strip value from pandemic spread across the United States from midMarch. In June, the Atlanta Fed asked its Business ( ) pension and retirement fund allocations.

The community banking model really came to the forefront for many small businesses.

BANKING & FINANCE INTERVIEW

Talent challenge Atlanta provides a deep and well-educated workforce but competition for young talent is high

Howard Kim Market Executive Metro Atlanta, Wells Fargo Commercial Banking – Wells Fargo Bank What recent changes have marked Wells Fargo’s past year?

In 2019, Wells Fargo looked at how it covered the commercial banking landscape. Historically, we had two groups that covered the market independently: Business Banking and Middle-Market Banking. They divided the market in terms of the client’s revenue size. We looked at that model and were determined to simplify it for our clients. As we helped these companies grow and become more successful, migrating those over to a different group was somewhat problematic. We made the decision to collapse those two groups into one, rebranding it as our Commercial Banking group under a single leadership, serving clients in the range of $5 million in yearly revenue to $2 billion.

How would you assess Atlanta’s commercial banking talent pool?

It remains a challenge, especially when it comes to young talent. Everyone is trying to get the best and brightest to come and work with them. The good news with Atlanta is that it has a highly skilled and diverse employment base, along with great colleges and universities, such as Georgia Tech, Morehouse College, Spelman College, Emory and UGA. Atlanta provides a well-educated workforce we are able to recruit.

Which sectors do you see performing well in this economic cycle?

Luxury goods are performing surprisingly well.

Boat manufacturers and hot-ticket items are doing unbelievably well. It is completely different from any recent recession we have been involved in. Luxury items usually disappear in such times. Residential real estate has also held up particularly well, especially in Atlanta.

The housing market has little inventory, builders are busy and it is a good time to sell your home. Purchasing something is more problematic. The industries that are most affected are bars, restaurants and anything affiliated with those. Retail real estate is struggling a bit, depending on what their tenants look like.

What are your main priorities for 2021?

One of our priorities is to reach out and ensure our team members are still in a good place, ready to provide understanding, assistance and flexibility. In terms of the market, we are still doing a bevy of Zoom calls, staying close to our clients to keep taking the pulse of their ongoing situation and seeing what we can do to help. We remain confident that the federal government will keep pouring liquidity into the market. www.capitalanalyticsassociates.com

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( ) Inflation Expectations (BIE) panel, which covers the sixth district, whether firms had requested and received financial assistance since March 2020. The survey also asked about the share of assistance received and the amount firms expected would be forgiven.

About 70% of firms in the BIE panel asked for financial help “of any form (ranging from borrowing through an emergency facility, from a bank, and even from family and friends),” the Fed said in a related blog. “A majority sought financial assistance from the PPP,” the bank said.

On average 95% of firms received the funding they sought and most expect the loans to be forgiven. The fed noted that one of the stipulations of PPP loan forgiveness is that companies had to retain or rehire employees. The survey results suggest that companies expect their headcounts to return to or near pre-pandemic levels. Importantly for many firms that acquired these loans, they won’t have the burden of prepayment weighing over them as they get back to business, the Fed said.

Sector performance Atlanta has a flourishing business scene, with over 75% of Fortune 1000 companies having a presence here. The metro area is home to offices for over 1,000 multinational corporations. This in turn has attracted the banking sector to attend to the needs of those large corporations. The largest market share in the metro Atlanta area is taken up by Bank of America, which held 22% of deposits as of June, knocking SunTrust off the top spot. SunTrust, which merged with BB&T to become Truist in 2019, came in second with 21% of deposits.

Wells Fargo held 20%, an increase on the year and JP Morgan Chase held 4% of the area’s deposits.

Atlanta is at the epicenter of the fintech revolution with over 50 companies generating over $72 billion annually.

Randy Koporc Regional President – Fifth Third Bank

Banks, and especially national institutions, are taking a hard look at the amount and type of investments they will need to conduct to keep up with technology, digital transformation and more. Many banks are looking at this and thinking, ‘Could I go at it alone?’ Many financial institutions are finding that they might have to come together. The other factor is that many customers want to have a multitier bank relationship. Many of our competitors are now one, so that opens a lot of opportunities for us to be a complementary banking partner. We continue to look for unique opportunities in all the markets we are in to expand our presence.

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BANKING & FINANCE OVERVIEW

The banking sector in Atlanta was doing well entering 2020. Sixth district banks registered strong balance sheets as of March 2020, primarily driven by increased lending, and capital levels were much stronger than when entering the Great Recession.

Prior to the shelter in place order being issued, the main focus for most banks was commercial real estate. In the three months ending June 2020, caution was noticeable but total asset growth was greater than 16%, with loans and deposits also increasing significantly, primarily driven by the PPP program.

Median construction loan growth increased by 6% and commercial real estate maintained momentum with growth of 4.5%.

There is no question that COVID continues to shape the banking sector in Atlanta and nationwide.

As well as the ability to work from home, the banking industry has rapidly adopted technology that has accelerated its trajectory by several years. “Technology is continuing to have a huge impact on the sector when it comes to ease of doing business.

We have been depending on our technology to help consumers make deposits and carry out other online banking transactions. More and more people are starting to adopt these new solutions and I think it will continue to be a trend in Atlanta going forward,� said Kenneth Davis, president of Renasant Bank.

According to a study by Bain & Company, customers prefer digital banking across key metrics, but the firm warns the trend is not that simple. The impact of digital adoption can differ from bank to bank. And this does not mean branches are obsolete. In fact, According to American Banker, July was the first month in nine ( )

BANKING & FINANCE INTERVIEW

Fintech impact New technologies can have ‘a huge’ impact on a bank’s client base

Eddie Meyers Georgia Regional President– PNC Bank applications for clients across the country. All told, we processed around $9 billion in total applications.

Everybody in the organization, from the CEO down, got involved in the PPP loans process to ensure that our clients could fill out their applications correctly and access a loan if needed. The banking industry in the Atlanta area was tremendous in supporting the community through the crisis, helping to protect jobs and support businesses.

How is the growing fintech sector changing banking in Atlanta?

Atlanta is one of 42 locations for PNC Bank across the country and most of our fintech strategy decisions are made at our headquarters in Pittsburgh. New technology can have a huge impact on our client base. If there is a product in development that makes it easier for our clients to access their capital, we will always look to take advantage of that opportunity. We have also invested a lot on cybersecurity to ensure that our new online products and services are safe and secure for our clients.

How did the bank participate in the PPP loans program?

We were able to successfully process a number of 130 | Focus: Atlanta 2020 | BANKING & FINANCE

How have the bank’s other lines of business performed during the pandemic?

Most of our corporate clients performed well. We recognize that most businesses could not have prevented the dip in activity and performance caused

by COVID-19, so it is our responsibility to steer them through that process. That’s what we have been focusing on.

The banking sector has been performing well through this period, in particular fintech and mobile payments firms. New home construction is also going strong, as sales are rising in many parts of the country. Wellcapitalized firms are taking advantage of the opportunity to pursue M&A opportunities and consolidate their growth. Hopefully, the economy can recover swiftly to ensure that small businesses in the more disrupted sectors can survive and get back on their feet.

What are the main objectives for PNC Bank’s Atlanta operations going forward?

Our first goal is to maintain our level of growth by continuing to assist and advise our customers and by expanding our services in the retail space. We want to serve the communities in which we live by understanding their changing needs and adding value to their businesses. This will be our main objective next year.

BANKING & FINANCE OVERVIEW

10.5% of Atlanta’s workforce is involved in occupations related to business and financial operations.

( ) years in which the banking industry opened more branches than it closed. Branch closures will still be on the table in the coming months, but only really in line with pre-pandemic plans in an effort to increase efficiency and eliminate coverage overlaps.

Fintech Atlanta is one of the most important banking hubs in the United States, and that has attracted disruptive banking, earning the city the title of Fintech Capital of the World.

Around 70% of global payments pass through Atlanta, which has led to the financial world also dubbing the city Transaction Alley. Six of the 10 largest U.S. payment processing firms are headquartered in Georgia and the top 20 Georgia fintechs rake in more than $72 billion in annual revenues. These companies process over 128 billion transactions worth over $5 trillion each year.

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And COVID is not slowing Atlanta’s fintech companies. In October, one Atlanta fintech, Greenlight Financial Technology, a platform that provides financial education to children, became the most recent unicorn with a $1 billion valuation. Just before that, in August, Atlanta-headquartered fintech Paya announced a merger prior to launching an IPO, giving the company a $1.3 billion valuation. Seeing the opportunities, the funding is coming. Truist became one of the latest banks to launch a venture capital division to capitalize on startups, with one of its first investments made in global payments company Veem. There are many opportunities for savvy investors, from small business financing firm Kabbage, to payment security company BlueFin and cryptocurrency company Bakkt.

Fintech Atlanta is an association that brings together

BANKING & FINANCE OVERVIEW

Around 70% of global payments pass through Atlanta, leading to its nickname, Transaction Alley all these fintechs in a hub designed to fill the human talent pipeline, attract financial backing and offer support to companies in the area. The organization hosts matchmaking events, accelerator programs, recruitment drives and provides scholarships to allow more talent to enter Atlanta’s fintech space.

In a drive to get bigger and better, Atlanta’s authorities are getting involved to attract the skilled talent it requires. The Georgia Department of Education (GaDOE), the University System of Georgia (USG) and the American Transaction Processors Coalition (ATPC) are working together on a high school fintech program that may be offered as a standard high school pathway or for dual high school and college credit. Another way many say that the fintech industry can expand its recruitment drive is by plugging into a more diverse talent pool and making efforts to ensure recruitment is inclusive of all backgrounds. ( )

®

oundtable:

Serving the community Credit unions, community and regional banks played a pivotal role in providing Payment Protection Program loans. Financial leaders discuss their role and their outlooks for 2021.

Brian Albrecht

President & CEO Credit Union of Georgia

How have PPP loans and the CARES Act recalibrated your operations?

Our commercial side is relatively young, and it received a rather recent push in 2017. Altogether, we approved about 300 PPP loans totaling $9.2 million. The vast majority of those were new members. They were absolutely thrilled with how well we exceeded their expectations. A significant portion of them tried to go through the traditional, larger financial institutions and were unable to get any traction, whereas we submitted approvals on the afternoon they submitted their application, having their loan funded within days.

It was great to be in a position to assist these local small businesses.

What is your outlook toward 2021?

We are focusing hard on our members’ experience and their interactions with our organization, trying to make that as frictionless or as easy as possible. Ease of conducting business is a critical focus for us. We are also opening another branch north of Atlanta, in Cherokee County. From an economic perspective, we are in waitand-see mode. We have been working toward building up our allowance account for potential loan losses. We do not expect to get a real gauge or feel for what is going to happen in that regard until 4Q20 We’re unlikely to know the full extent of COVID-19’s financial impact until early to mid-2021 at the earliest. It largely depends on how the treatment and vaccine fronts develop. We remain focused on continuing to assist our members, providing forbearance, deferrals, cutting fees, anything we can do to help them.or 1Q21.

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Stan Kryder

Regional President CenterState Bank - Atlanta

How important is the Atlanta market as a location for your business?

Atlanta is still the largest market in our six-state area, so it is the hub of our growth for the future. Looking back over the last three years, seven of the nine largest banks in Atlanta have all changed hands and some have moved out of state, such as Truist. We are excited about the potential that creates for midsize banks like ours.

What was your involvement in the PPP loan scheme and what lessons were learned?

To date, we’ve closed about 20,000 PPP loans for small businesses at a value of about $2.4 billion. During the PPP process, the rules evolved and changed, so we had to be nimble and flexible. As more facts came to light, the borrower had to adapt to changes, as did the banker, but it made us a better organization to be able to deal with rapid change in an industry that is typically more linear. We are now trying to learn from those lessons and handle the forgiveness aspect. This is critical because if we mishandle the process, it could jeopardize the loan forgiveness of the borrower.

How has access to capital changed amid COVID-19?

In residential mortgages, long-term rates are at an alltime low. People are now refinancing at lower rates and homebuying has really picked up, surprisingly. At certain price points, the builders we bank cannot keep inventory.

Also, the same small businesses that needed PPP loans are paying much less on their non-PPP-related debt, which is helping them buy some time until the economy improves.

BANKING & FINANCE ROUNDTABLE

Bill Linginfelter Area President Regions Bank

What was the initial roll out of the PPP loans like for your operations?

The government and the agencies responsible for the CARES Act pulled something together quickly in a big way. We calculate we helped keep hundreds of thousands of people at work because of the PPP loans.

The initial rollout was not without a few bumps. But we dedicated a couple of thousand people into getting the proper systems in place, getting the right risk parameters in place and taking care of our customers while meeting the needs of every party. We think we built an exceptional model that really will help people as we enter the forgiveness phase. We are very interested in the success of our communities and we realize that the backbone of those communities involves key players such as small businesses. It was a natural fit for us.

What is your outlook for the next year?

I think Regions in Atlanta will do just fine over the next six to 12 months. Our customers rate us exceptionally well, according to surveys done by independent organizations.

We have a clear approach of adding value to relationships, which means you have to know your customers and their industries pretty well. I think the Atlanta economy will overcome. We still have one of the busiest airports in the world and the region remains an attractive place to do business, which means people and companies will move here. I see growth here, which means opportunities for the bank. We learned a lot during the Great Recession. We put together a strong balance sheet and capital position that will serve us well as we go through anything. I feel good about our prospects.

David Preter

CEO Georgia’s Own Credit Union

How did Georgia’s Own Credit Union pivot to help its customer base during the pandemic?

2019 was one of our most successful years in terms of growth. We came out of 2019 reflecting on and looking forward to how we could do better. By the end of March 2020, things started to turn on us. We had to revise and change our strategic plan and go in a different direction. We decided to pivot to initiatives that would have an immediate impact on our members’ lives, such as low-interest relief loans, renegotiated loan terms, and deferred payments. As PPP loans became available, we worked to offer those to benefit out commercial business members.

What are your top priorities heading into 2021?

We are looking at growth through M&A. To that end, we continue to examine potential bank acquisitions or credit union mergers. The financial crisis part of this is not over yet as people have been meeting their financial needs through PPPs, stimulus payments, skip-a-payment programs, forbearance and even unemployment payments. At some point, when people are not back to work and these assistance programs are no longer there, they will no longer be able to meet their payment obligations. When consumers or commercial accounts experience difficulties several months out, people are going to need more access to different types of products and services. When that happens, less sophisticated financial institutions are going to have difficulties catering to those needs and will be looking for partnerships. We hope to be that go-to partner to fill the gaps. www.capitalanalyticsassociates.com

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BANKING & FINANCE INTERVIEW

M&A drivers The accelerating importance of technology and its inherent cost are among the main factors driving industry consolidation

Palmer Proctor CEO – Ameris Bank their branches remain closed. If you are pushing your customers into a different delivery channel, you need to make sure that channel is more than acceptable for them by providing a user-friendly environment and a satisfactory user experience. The other main reason for mergers and acquisitions is consolidation for economies of scale and increased market share in high growth areas.

What combination of factors is driving M&A activity in the banking sector?

There are several different forces behind that. One of the largest drivers today is technology and the realization on the part of financial institutions that they need to make investments on that front. Several banks realized as they looked at their technology expenditure that they would be better off partnering with someone else to share in that initiative and that expense, consolidating resources and opportunities. One of the silver linings throughout this pandemic is that it has forced all companies across the business spectrum, not just the banking industry, to push forward with their technological ambitions.

Banking has historically been rather archaic in terms of technology and needs to be more progressive and embrace technology to better serve their customers as 136 | Focus: Atlanta 2020 | BANKING & FINANCE

As consumer preferences shift, how are you adapting your services portfolio?

The retail branch is a much more traditional model than any other part of banking. Online loan applications have been available for quite a while, and have been widely accepted among applicants. Some of the more complex and time-consuming financial operations are going through a digitalization and automatization process to render them easier and more efficient for all involved. That has translated into an increased number of virtual loan closings, even amid the pandemic. We are a believer in a balance between “bricks and clicks.” Traditional branches remain an important part of our strategy but can be better optimized. This optimization process focuses on the rationale for our existing footprint and opportunities for digital acceptance.

How would you rate Atlanta’s talent pool for meeting the needs of the banking industry?

Excellent. Atlanta is the financial hub of the Southeast with many experienced bankers within our market.

However, banking has an aging demographic and the industry needs to focus on attracting a younger and more diversified talent pool to carry our industry forward. It falls on us as an industry to better educate and market banking employment opportunities. The biggest risk within our industry is a shrinking talent pool.

Cynthia Day President & CEO Citizens Trust Bank – Atlanta

What measures are you taking in the community to address and help close the wealth gap?

We always say that we are not just in the community, we are of the community. We are engaging customers and providing financial education. Our customers are representative of the communities we serve, from age, personal economic experience and type and maturity of businesses. Our mission is to meet our customers where they are, from customers who are building credit to customers who are building wealth. We have built products that allow all these demographics to comfortably build a banking relationship with ease and stay engaged. Our guiding principles when we were founded in 1921 were to eliminate banking deserts and we maintain this focus today.

What were some of the lessons learned from the rollout and implementation of the PPP loans?

We learned that rolling out legislation at such a fast pace was extremely challenging. But the outcome and the benefit to small businesses was worth it. The second thing we learned was that technology was our friend. For the second round, through a partnership, we utilized technology that allowed our customers to submit applications and gain approval more efficiently.

This was a great outcome for our customers and our bank.

What is your outlook for the business environment and the bank?

Atlanta is resilient and it’s a great place to do business.

It’s an affordable place to live, has a strong technology footprint, a diverse population and cultural presence and the busiest airport in the world. I remain very optimistic that we will emerge as the leader that we are. For banks, I think we could have some challenges in the near term. However, we came into this pandemic strong and well-capitalized and I believe we can weather the storm and our customers and our bank will emerge well-positioned to move forward.

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There are 95 banks and 51 credit unions headquartered in the Atlanta region.

( ) Regulations The Federal Reserve Bank of Atlanta regulates and supervises financial institutions to ensure compliance with regulations. One of the ways in which it governs banks is by imposing lending and liquidity requirements and restrictions. The most recent example was in October when the Federal Reserve Bank, alongside the Federal Deposit Insurance Corporation and Office of the Comptroller imposed regulations on net stable funding ratios (NSFR), requiring banks to maintain a minimum level of funding over a one-year period in an attempt to bolster financial stability and reduce liquidity risk. As the COVID-19 pandemic progressed and it was no longer viable for the Atlanta Fed to carry out audits on community banks, these efforts were paused temporarily before resuming at the end of July. However, the Fed continued to monitor banks’

BANKING & FINANCE OVERVIEW

performance, examining expectations and capacity and coordinating efforts with local authorities.

Another notable regulatory step taken by the Atlanta Fed is a revision of banking regulations in minority and low-income communities. The entity wants to create incentives for capital investment across the less privileged neighborhoods of Atlanta with an overhaul of the 1977 Community Reinvestment Act, which would ensure banks are providing adequate credit in all communities, regardless of income. Another area that regulators are monitoring is supply chain finance (SCF), which has raised regulatory concerns from the SEC for several years. Now that COVID-19 has made efficient supply chains more necessary than ever, more sophisticated regulation is required to ensure credit risk surrounding the mechanism is kept to a minimum.

Mortgages In the second quarter of 2020, U.S. lenders issued $1.1 trillion in home loans, according to the Mortgage Bankers Association, the largest quarterly origination number since the company started tracking data in 2000. Interest rates continued to decrease in the same period, with the 30-year fixed mortgage coming in at 3.16 percent at the end of June, a drop of seven basis points from May and 64 basis points lower than a year earlier.

Low rates have huge implications for the economy at large, and while loans will stay cheap, savings will also fail to produce substantial yields. Over a long period, initiatives to keep interest rates low can create an environment of unhealthy borrowing and a battle between inflation and deflation that could ultimately result in an increase in the cost of servicing debt. ( )

Market voices: Market needs

Kenneth Davis

Atlanta continues to have a strong influx of migration, so multifamily housing will continue to prosper alongside affordable single-family housing.

Healthcare should also grow, as well as transport, logistics and distribution. As a bank, we are a generalist but we do have individual bankers who specialize in certain industries. Because of that, we can always connect our customers with the tools they need to thrive under any circumstances.

President Renasant Bank

We are being cautious when it comes to loan origination while building a deeper understanding of the impact of COVID-19 on business and supply chains both locally and globally. We expect approximately 90% of our clients will eventually get full forgiveness of their PPP loans. The majority of our clients planned to use the proceeds for its stated purpose, which was mainly to provide payroll assistance. In those cases, I would expect the money to be forgiven. As a bank, this will help us transition out of the PPP program and continue building our client relationships.

Sam Donley

Senior Vice President & Head of Business Banking Team City National Bank

Steven Deaton President & CEO Cornerstone Bank

This step has been many months in the making, and we are really excited about it. We have been in Atlanta since 2011, when City National’s head of entertainment banking in Atlanta, David Innes, and his team of experts opened an office to serve the growing entertainment industry here. They have been dedicated to serving the entertainment community in Atlanta ever since. And they’ve been so successful that my team in business banking had the opportunity to come in a few years ago to start introducing ourselves to the community and providing banking services to businesses, entrepreneurs and their families.

We have a significant private wealth practice in Atlanta. What has been needed is lots and lots of communication, especially during the first 90 days of the pandemic because they were really rough. Clients saw a run off on their portfolios and were asking their private wealth advisers about their strategy. Many times, the best strategy was to hold hands and let them know that things were going to be ok. As you’ve seen, the market’s come back to pre-COVID levels, and the quest now for many private wealth clients is for yield because we are going to have a pretty low interest rate environment for quite a while.

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Marc Veach

Managing Director & Atlantic Region Head CIBC U.S.

BANKING & FINANCE OVERVIEW

Bruce Lowthers President, Banking and Merchant Solutions – FIS

There is a tremendous amount of activity around digital. In the last few years, there has been a large spike around bringing the digital channel to life for consumers and our clients. We really have had significant activity around that concept with our Digital One solution suite and bringing that to market. One development that has proven exciting for us coming out of 4Q19 and into 1Q20, has been our Modern Banking Platform. It’s a modern platform, completely built from the ground up, that has taken the market by storm over the last two quarters, engaging some of the largest banks in the world to transform their core banking system. Acquiring the Worldpay business also unlocked several opportunities for us to go back to our clients and create new solution alternatives.

( ) For banks, the low-rate environment is squeezing margins, hitting revenue growth related to loans, although the favorable rates are also driving up mortgage lending and refinancing, which contribute to strong growth overall. Overall, the risk of inflation as a result of the low rate environment appears to muted. Rand Meyer, office managing partner at Dixon Hughes Goodman says companies have other more pressing concerns. “Many of us have been concerned about inflation for many years, and it’s never materialized. I fully expected it, even back in 2014 and 2015, because it has been such a long period of low

interest rates. However, that really hasn’t stopped with the pandemic. Interest rates have come down and, through recent legislation, the federal government has increased spending by trillions of dollars. From what I’m hearing, people are not overly concerned about it; companies are more concerned with managing cash flows and looking for the business opportunities after, and even during, COVID-19.”

On the unemployment front, as job losses were felt during the COVID-19 crisis, the federal government imposed a moratorium on evictions and foreclosures to lend some support to those out of

BANKING & FINANCE OVERVIEW

Atlanta Fed poll suggests it will take over 12 months for communities to return to pre-pandemic economic conditions work and struggling temporarily to pay the bills. But as the deadline for the moratorium looms, many are expecting a wave of foreclosures across the country.

By the end of 2020, millions of borrowers receiving mortgage forbearance will have gone nine months without making a mortgage payment. Of all Federal Housing Finance Administration (FHFA) insured loans, Atlanta’s delinquency rate stands at 21%, among the highest in the country alongside New York and Miami.

From March to July, subprime mortgage delinquencies nationwide increased by 23.7%, a worrying trend given they were the root of the 2008 Great Recession.

Homeowners are examining new ways to stay liquid, and older generations especially are increasingly turning to reverse mortgages. Home Equity Conversion Mortgages allow the homeowner to take equity out of the house without the need to repay. The only

condition is that they must stay in their house until death and the funds can be repaid as a lump sum. The option comes along with some hefty fees due to lender protection insurance.

Looking ahead COVID was somewhat positive for the banking industry in that it accelerated the move to digitalization, but on the flip side this will require serious regulatory scrutiny to keep up with developments. Banks were able to increase loan portfolios on the back of the PPP loan program but this is a program that is still surrounded by great uncertainty regarding repayments.

The Atlanta Fed found in a survey in July that nearly half of all those surveyed believe it will take longer than 12 months for the communities and people they serve to return to economic conditions they were experiencing pre-pandemic. For Atlanta’s banking industry, the beginning of the COVID-19 crisis provided an opportunity to help customers while moving more deeply into the digital realm.

Going forward, there will be continued uncertainty at least through the first quarter of 2021. “From an economic perspective, we are in wait-and-see mode. We have been working toward building up our allowance account for potential loan losses,” said Brian Albrecht, president and CEO of Credit Union of Georgia. “We do not expect to get a real gauge or feel for what is going to happen in that regard until 4Q20 We’re unlikely to know the full extent of COVID19’s financial impact until early to mid-2021 at the earliest. It largely depends on how the treatment and vaccine fronts develop.

Healthcare: With top-rated hospitals, advanced research institutes and a highlyqualified talent pool, metro Atlanta enjoys a broad healthcare ecosystem that is world-class and internationally renowned. As the region’s population expands, the need for quality healthcare services is heightened, and Atlanta is delivering.

www.capitalanalyticsassociates.com

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Anatomy of a Pandemic: How the COVID-19 outbreak unfolded The first signs of the COVID-19 pandemic that has engulfed the world emerged in November 2019 in China, and from January 2020 onward, the deadly virus’ spread accelerated across Europe and then to the United States. As of mid-November, over 53 million cases had been reported globally, with the U.S. cases alone topping 10 million. The death toll globally was nearly 1.3 million in mid-November and the official U.S. toll was over 245,000.

Overview: Total confirmed cases*: World:

United States:

43,246,598 8,646,385 Total deaths: World:

1,151,494 Timeline of Key Events:

United States:

224,905

*Oct. 27, 2020 (Johns Hopkins)

2019 November 17

January 22

February 6

Chinese government records suggest 55-yearold suspected of being first COVID-19 case.

China says virus could mutate.

More countries report first cases.

WHO holds first meeting to decide whether to declare an international health emergency.

January 21

WHO accelerates research into virus with global meeting US citizen in Wuhan is first American to die of coronavirus.

December 8 A patient in the city of Wuhan sought medical help for pneumonia-like symptoms.

December 29 Four cases identified by local hospitals using a surveillance mechanism for “pneumonia of unknown etiology,” all linked to the Huanan Seafood Wholesale Market.

December 31 The WHO China Country Office is informed of cases of pneumonia of unknown etiology detected in Wuhan City.

China government timeline shows 27 confirmed cases, government tells people to avoid indoor spaces and gatherings.

2020 January 1 Huanan Market closed due to outbreak of “pneumonia outbreak”.

January 3 China officially notifies WHO. January 13 Thailand reports first confirmed imported case as outbreak spreads beyond China.

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China confirms two additional deaths Hong Kong, Taiwan report first cases.

Man in Washington state who traveled to Wuhan area becomes first U.S. case.

January 20 China state TV confirms person-to-person transmission; China’s CDC catagorizes the coronavirus a Class B infectious disease but adopts Class A measures to prevent and control the virus.

First case confirmed in South Korea.

January 17 Second death in Wuhan, second case in Thailand.

January 16 Japan reports its first case.

January 14 Wuhan city puts restrictions in place at airports and other entry terminals to screen passengers.

January 23 WHO decides against health emergency declaration.

January 24

February 5

Cases rise to 830 in China First cases reported in France US reports second case, this time in Chicago.

WHO announces $675 million plan to contain spread of outbreak.

CDC begins shipping test kits to US labs.

Japan quarantines cruise ship with 4,000 passengers aboard for 14 days after outbreak on ship.

January 25 First reported death of a medical professional related to treating coronavirus case US confirms third case, in Orange County, California.

January 26 US confirms cases in Los Angeles and Arizona. All had traveled to Wuhan.

January 27 Virus spreads to more countries, including Germany.

US extends screening to 20 airports.

January 28 The United States and Japan become the first countries to evacuate citizens from Wuhan.

US Airlines says it will suspend all flights to China from the US. January 29 More airlines announce suspension of flights to China.

February 3 G7 countries agree on coordinated approach to outbreak.

January 31 Russia, Italy and the UK report first cases Singapore bans on Chinese visitors and anyone who had visited China in the past 14 days.

January 30 WHO says the coronavirus outbreak is a Public Health Emergency of International Concern.

US issues Level 4 advisory for travel to China.

April 2

February 7

March 9

March 10

President Trump speaks by phone with Chinese President Xi Jinping; US pledges $100 million to help China, others fight coronavirus.

Italy locks down nationwide.

WHO says China recovery rate over 80%.

More countries issue travel bans or require 14-day quarantine for arriving visitors.

UN in New York, the Vatican close doors to public Rhode Island declares state of emergency.

Coachella music festival postponed.

States of emergency in Michigan, Vermont, North Carolina, Massachusetts, Colorado.

March 11

February 8-14 Death toll in rises to 908 to surpasses 2002 SARs outbreak WHO names new disease “coronavirus disease 2019,” or COVID-19.

Trump administration budget proposal slashes funding to WHO. 15 cases in the US. February 15-21 Number of deaths outside China begin to rise WHO says COVID-19 has potential to become a pandemic.

Japan says it had entered new phase of outbreak Global death toll tops 2,000.

Japan suspends major public gatherings; Italy closes public spaces in 10 towns.

US announces it will evacuate 400 citizens from Diamond Princess cruise ship.

In its updated quarterly guidance, Apple warns it will fall short of revenue expectations, cites production disruption in China.

34 cases in US. February 22-28 Germany says it is at the beginning of an epidemic For the first time, there are more cases outside China than within.

Global stock markets nosedive as cases outside China rise.

DOW Jones posts worst loss in two years President Trump requests $2.5 billion from Congress to fight outbreak.

San Francisco declares state of emergency, first in US (Feb 25).

CDC says people should prepare for spread of virus to the US. President Trump names VP Mike Pence to lead COVID-19 response.

March 8 France bans large gatherings over 1,000 people.

Oregon declares state of emergency.

March 7 Kansas, D.C., reports first positive coronavirus case, New York declares state of emergency.

March 6 Total global cases: 100,000.

Utah, Kentucky declares state of emergency.

CDC urges those over 60 years old to stay indoors.

SXSW festival becomes first big event in US to cancel due to coronavirus.

March 5 Maryland declares state of emergency; first case in New Jersey.

March 4 House passes first aid package to fight outbreak, $8.3 billion (Politico).

California declares state of emergency.

March 2 US reports 4 more deaths.

March 1 Global death toll over 3,000.

Florida declares state of emergency; second US death reported.

February 29 First US death; Washington state declares state of emergency.

WHO declares virus outbreak a pandemic.

NBA suspends season.

March 12 School closures expand globally, UN says 20% of worldwide student population out of school.

States of emergency in Montana, New York City, Virginia, Tennessee.

Dow, S&P stock indexes suffer word decline since 1987 crash, enter bear market.

March 13 Spain declares state of emergency; WHO says Europe is epicenter of pandemic.

Denmark, Poland, Czech Republic close borders.

President Trump declares national state of emergency.

March 16 More countries close borders, including Spain, France and Germany.

CDC says over 4,000 cases in US. Dow has worst decline in history.

March 17 EU closes borders except for essential travel.

Virus spreads to all US states as West Virginia reports first case.

The number of COVID-19 cases worldwide passes the 1 million mark, with more than 50,000 deaths.

Over 90% of Americans are placed under stay at home orders.

Weekly US jobless claims climb to 6.6 million in prior week.

March 27 President Trump signs CARES Act into law, providing relief to taxpayers impacted by COVID-19, including the Paycheck Protection Program.

March 26 A third of global population under restrictions.

US death toll hits 1,000, leads world in number of cases.

3.2 million US jobless claims in previous week.

New York City becomes epicenter of US outbreak Senate passes $2.2 trillion economic stimulus package dubbed the CARES Act. March 25 Spain has second-highest number of deaths UN unveils $2 billion response plan WHO warns of medical supply shortages.

March 24 Japan postpones 2020 Summer Olympics.

US activates National Guard in all states.

March 23 WHO announces accelerating rate of virus’ spread.

March 19 Italy death toll surpasses China US issues Do Not Travel advisory, Level 4.

California issue stay at home order.

March 18 US, Canada suspend nonessential travel between two countries.

President Trump signs Families First Coronavirus Response Act into law.

Sources: Thinkglobalhealth.org, South China Morning Post, CNN, Associated Press, Reuters, Politico, The Japan Times, WHO, Johns Hopkins, NHK, Apple Press Release, New England Journal of Medicine, NPR, New York Times

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Global reputation: Atlanta leads the state in healthcare services with a world-renowned ecosystem With a steadily increasing population, the importance of quality healthcare in metro Atlanta is heightened.

Fortunately, the region, like the state, is delivering.

In fact, Georgia is known as the public health capital of the world due to its world-class medical facilities, infrastructure and world-renowned research centers, many of which are headquartered in Atlanta.

In addition to the Centers for Disease Control and Prevention, the Carter Center and Emory University’s Global Healthcare Institute, Atlanta boasts a thriving healthcare ecosystem that highlights topnotch hospitals and a thriving technological and entrepreneurial base of expertise.

Atlanta, the ninth-most populous metro area in the country with just over 6 million people, also has a relatively young, diverse and educated population, with a median age of 36.6 compared with the national average of 38.2. And of the state’s 23 leading educational institutions graduating bioscience, medical and healthcare professionals, eight are in Atlanta. The education, health and social assistance sector in Georgia overall contributes around $47.5 billion to the state’s GDP. “Atlanta has a strong base of provider groups as well 146 | Focus: Atlanta 2020 | HEALTHCARE

as technology companies. The business climate here promotes and supports entrepreneurship. The cost of doing business here is lower, the access to talent is higher, and regulation tends to be more simplistic,” Arun Mohan, CEO of Radix Health, told Focus: Atlanta.

“All these factors contribute to promoting a rather strong ecosystem. Should these solid foundations endure in the coming years, Atlanta is poised to do really well as a result of these synergies.”

Landscape The metro area provides an extensive healthcare system to its residents, with 45 hospitals that contain around 11,500 beds and employ 75,000 workers. Some of the area’s biggest employers are healthcare providers and healthcare services companies, including Emory Hospital and University, Northside Hospital, Piedmont Healthcare, WellStar Health and Children’s Healthcare of Atlanta, which together provide more than 88,000 jobs. In fiscal year 2018, a total of $3.3 billion was spent on Medicaid by the Georgia government.

Atlanta’s residents and visitors also have access to some of the best healthcare systems in the world.

Seventeen of Georgia’s hospitals made the U.S. ( )

HEALTHCARE INTERVIEW

Holistic health COVID-19 has highlighted the intertwined relationship between health, work, mental well-being and community

Pam Stahl President – Anthem Blue Cross & Blue Shield How has the last year evolved for the company, in particular with the coronavirus pandemic?

My team and I have been focusing on a holistic approach to meet the needs of the whole person. One thing this pandemic has made clear is that health, work, mental well-being and community are all intertwined. Therefore, we are creating and delivering innovative, data-driven and personalized solutions that enhance the consumer’s healthcare experience.

We have advances in digital technology that allow us to provide faster, safer and more secure exchange of medical information, transforming the delivery of healthcare. We can use this greater exchange of information as the foundation to help consumers see important clinical information in real time to drive their engagement and understanding of where they are, and help them drive better outcomes. This gives them the ability to access a virtual health assistant, a healthcare cost calculator, the ability to make payments and schedule appointments online and even receive notifications about potential gaps in care.

On the other side, employers get better insights about their employees, allowing for better annual renewal preparations and dashboards.

How has Anthem worked toward value-based care?

Value-based care is really important. People are looking for outcomes; they want to ensure that everyone they interact with in the healthcare environment is aligned to help them be healthier in the end, and at an appropriate price range too. We are proud to be a leader in value-based incentive programs for providers in Georgia. In 2021, we are going to be introducing a High-Performing Network (HPN) in Georgia, part of the new national network of high-quality Blue Cross & Blue Shield providers that deliver better and more affordable care. This Blue HPN will deliver improved healthcare outcomes and better patient experience at up to a 10% lower cost.

What has been the impact of telehealth on your business?

With all the challenges brought about by coronavirus, I do think the adoption of telemedicine has been a really exciting consequence. It has changed how consumers think about healthcare delivery, causing many of them to consider telemedicine for the very first time.

Telemedicine has been around for a long time but it has taken this long for it to get to a place where consumers are really starting to get more comfortable with it.

We’ve seen a steady increase in adoption of telehealth month over month. LiveHealth Online, which is our telemedicine online healthcare solution, surpassed 1 million visitors in early April. www.capitalanalyticsassociates.com

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Pete McCabe CEO Ciox Health

What is Ciox Health’s core business and role in the healthcare sector?

We empower patients and use data to help them improve both cost and quality outcomes. We move around 100 million patient records per year and work to bring down the cost and improve the quality of healthcare in the United States. Regarding the pandemic, we need to understand more about COVID-19 and progress work on a vaccine, and that starts with data. We have used our resources and expertise to build a COVID-19 super data registry, pulling more than 10,000 patients and analyzing their responses.

How are hospitals mitigating the revenue loss from the suspension of elective surgeries?

COVID-19 needs to be the first priority because we still have not managed to control the virus. But of course, these are big businesses and the loss of 40-50% of revenues creates a meaningful economic challenge.

Fortunately, the hospitals and healthcare systems are getting some support from the government, which is important. As COVID-19 dies down, this will free up more capacity for patients suffering from other ailments, and so the hospitals will be able to perform more elective surgeries. Some hospitals are also starting to segregate themselves, by treating COVID patients in one area and doing elective surgeries in another area.

What role can technology play in healthcare?

We are trying to make clinical data as liquid as possible to enable patients and stakeholders across the healthcare continuum to improve healthcare outcomes. Given the scale and variety of electronic health records across the country, this is a challenging task and the solution is technology. We are building a workflow infrastructure, which includes the implementation of a digital grid, improving interpretation methods through APIs and working on solutions to digitize all of the existing paperwork across the various healthcare systems in the country.

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The pandemic put a spotlight on the importance of quality healthcare in metro Atlanta.

( ) News & World Report’s ranking of the best hospitals, with Atlanta facilities holding down the Top 5 rankings in the state, led by Emory University Hospital at No. 1.

These healthcare systems aren’t standing on laurels, either. They’re expanding to meet increasing needs, and new players are entering the burgeoning Georgia market. Walmart Health plans to expand with seven new locations in Georgia by the end of fiscal year 2021 and a new hospital is being built in Lumpkin County in the space taken up by the vacant Chestatee Regional Hospital, which closed in 2018.

But with growth also comes challenges. In total, there are 22,471 physicians in Georgia, or 213.6 per 100,000 of the population. A significant proportion of these – 3,679 – are 65 and over, outnumbering the incoming generation of physicians aged 34 and under, which total just 2,155, according to the Georgia Board of Healthcare workers. This has sparked some concern over the system’s ability to continue providing for a growing population as one generation of doctor’s

HEALTHCARE OVERVIEW

retire. Fulton County has one of the lowest physicianto-patient ratios at 936:1, compared with 3,558:1 in Clayton County. In Georgia, 18.2% of adults reported not seeing a doctor in the last 12 months because of cost in 2018, the last year for which data is available.

According to Emory University, Georgia has one of the lowest densities of registered nurses in the nation, with a significant annual increase in nurses aged 65 and over, which indicates the current nurse shortage could be exacerbated in the coming years.

Coronavirus Few challenges, however, were as unexpected as that resulting from the coronavirus pandemic that defined healthcare in 2020. On March 14, the governor of Georgia announced a State of Emergency in response to the spread of the novel coronavirus. On March 16, schools were closed and on March 23, the first shelter in place order was imposed. At the end of April, the process of reopening commenced, although the state of emergency was extended into June. At the end

of April when reopening began, there were 25,832 known COVID cases in Georgia, but by the beginning of October, that number had skyrocketed to 318,026.

Similarly, the death rate surged to 7,021 from 1,125 in the same period. COVID cases were focused mainly in the four most urban counties of Gwinnett, DeKalb, Cobb and Fulton.

At a time when healthcare and hospital staff were most in need, hospital administrators were stuck between a rock and a hard place. On one hand, many hospital systems were saturated with COVID patients.

At the end of July, several hospitals were at or over capacity: the Atlanta-based Grady Memorial Hospital saw a 300-400% month on month increase in COVID patients. And the state’s rural hospitals were placed in a trickier position, with many lacking the capacity for a pandemic of such a scale. With a $1.2 million investment from the state, Grady Health System set up a program to map capacity and bed availability across the state.

On the other hand, while hospital systems were grappling with staffing shortages, elective surgeries ( ) www.capitalanalyticsassociates.com

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HEALTHCARE INTERVIEW

Dramatic growth Demand for hospital-based physician services allows strong expansion of outsourcing services

Dr. Michael Dolister CEO – ApolloMD 10 Wellstar facilities, along with 12 additional hospitals throughout Northern and Central Georgia. We also provide anesthesia, hospital medicine and radiology services to several of our Georgia client hospitals. We have over 100 clinical engagements across the country, with the majority in the Southeast.

Telehealth is obviously an emerging segment of healthcare that took on even greater urgency during the pandemic. We are partners in a telehealth platform that allows for direct patient engagement, though we are careful to in no way compete with our client hospitals that have their own telehealth processes. Telehealth has been well-received in all markets in which we operate.

What is ApolloMD’s role in the clinical outsourcing sector?

We are engaged by hospitals and health systems to provide hospital-based physician services, with the majority of our partnerships in emergency medicine.

We also provide hospital medicine, anesthesia and radiology services. We are responsible for hiring, scheduling, and billing for the physicians and advanced practice clinicians in our departments.

How have you been able to expand your offering and how is telehealth impacting operations?

Over the past several decades, we have been able to dramatically expand our network, both inside and outside of Georgia. Since 2000, our emergency medicine footprint in the state has grown to include 150 | Focus: Atlanta 2020 | HEALTHCARE

How is the healthcare sector likely to consolidate going forward?

With the continued financial pressure on the healthcare sector and the ongoing pressure for companies to do things more efficiently, consolidation is often seen as a pathway to meet these goals. Over the past decade we have seen hospitals seek efficiency through consolidating multiple service lines under a single provider group. This has been an area of growth and opportunity for us, with, for example, partner hospitals for which we have provided emergency medicine now asking us to expand into an additional specialty like hospital medicine.

How equipped is Georgia to provide the pipeline of medical staff going forward?

From a medical standpoint, Georgia is extremely wellpositioned to continue to provide and attract top-quality physicians. There are a number of highly-regarded residency programs in the state, including those within Wellstar and Emory Healthcare. ApolloMD is fortunate to have the opportunity to participate in many excellent training programs across our partner hospitals.

CONSTRUCTION HEALTHCARE OVERVIEW

( ) – the biggest income for hospitals – went on the backburner indefinitely, hitting revenues. Staff furloughs were unavoidable for many systems, despite the urgent need for staff. In May, Emory cut staff hours and furloughed 1,500 employees, WellStar announced a furlough of just over 1,000 staff members and Children’s Healthcare of Atlanta furloughed 400. And despite $1 billion in federal aid packages, hospitals still continued to haemorrhage money during the pandemic.

In numbers, plastic surgery activity declined by 100%, ENT surgeries fell by 79%, cardiovascular surgeries decreased by 53% and neurosurgery surgeries were off by 57%, creating a significant shortfall for hospital systems. According to Rick Pollack, American Hospital Association president and CEO, the cancellation of elective surgeries will be one of the contributing factors to hospitals across the country posting a loss of around $323 billion since the

Half of the country’s hospitals are expected to be in the red by the end of 2020 beginning of the pandemic, and half of the nation’s hospitals were expected to be in the red by the end of the year. Wellstar alone is anticipating a $400-million to $600-million loss through 2020. But hospital systems remain fundamentally strong, with Children’s Healthcare of Atlanta retaining its Aa2 rating from Moody’s this September.

Although elective surgeries were canceled, the new lifestyle adopted by many created a shift in hospital admissions. Grady Memorial saw a 25% increase in trauma cases, involving bicycle accidents, car crashes, falls and even gunshot wounds. A rise in suicide attempts and domestic violence was also reported by the hospital system. The toll taken on mental health by the shelter in place order was also blamed for a rise

Dan Fellner CEO Georgia Urology

How has Georgia Urology expanded its services to reach more patients?

As the largest private urology practice in the Southeast, and the fifth-largest in the nation, we have physicians who are board certified and fellowship-trained in many urological subspecialties so we can provide care for whatever your urological need might be. We continue to improve our practice and the services that we offer by expanding the types of diagnostic tools at each of our locations, so that you can get services on-site without having to schedule another appointment or go to a different location – we have 33 offices in metro Atlanta.

That’s just about patient convenience.

What are you doing to reach rural and underserved populations?

We are always looking to explore opportunities outside of metro Atlanta, and we are constantly talking to primary care physicians and hospitals outside metro Atlanta about their growth plans and how we can help them provide urological care. Our offices are located across the city and that has allowed us to grow our patient base into more rural areas. Also, telemedicine has helped us dramatically extend our geographical reach. That’s been great for our patients and for our practice. We were piloting a telemedicine platform when the pandemic hit and that accelerated our adoption.

What are your areas of research?

Our Advanced Prostate Cancer clinic is at the early stages of some research that we are very excited about.

We do a great deal of diagnostics, as well as looking at population health metrics to understand how some of those new and cutting-edge treatments are affecting our patient outcomes and so far, we’ve received good results. Cancer research is at the forefront of our mind and we are continuing to grow our capability to treat it by making specific, targeted hires to add to our team and to make sure that the cancer treatment we provide to our patients is top-notch. www.capitalanalyticsassociates.com

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HEALTHCARE OVERVIEW

Wade Rakes CEO – Peach State Health Plan

There were special rules put in place at the onset of the pandemic that allowed us to treat patients’ engagement with doctors through technology. For treatment that can be done remotely, new technology does create an improved consumer experience thanks to the time that is saved by staying at home.

This has been made possible by the growth in the accessibility and adoption of telehealth services. Atlanta has been a hub for innovation around communications for a long time, so it is not surprising that telehealth is so popular in the region. We have to make sure that telehealth continues to supplement the great work that is being done in our hospitals and our physician offices.

This is one reason why Medicaid expansion has been in alcohol use by around 14% for over-30s, and a 9% increase in all drug overdose deaths had the same root such an important issue for so many Georgians for so long. Medicaid expansion is a concept that first came cause.

The debate over wearing masks to combat the spread into play with the signing of the Affordable Care Act of the virus was polarizing across the country, but (ACA) in 2010, and Georgia is one of the 12 remaining perhaps no location felt the impact more than Atlanta. states that have not signed up to the expansion. The With two drastically opposing opinions coming from state government’s refusal to sign up to the Medicaid the state and local governments, Atlantans were expansion and the state’s proposal to walk away from left in the middle as Gov. Kemp banned cities from ACA coverage would leave hundreds of thousands of people across the state uninsured, imposing mask ordinances but experts say. 2020 rates for ACA Mayor Keisha Lance Bottoms, coverage dropped 0.9%, with concerned about the spread of two new providers joining the the virus within the city limits, exchange. required that citizens wear masks After over a year of proposals, in public spaces and reversed the some momentum has been city’s reopening plan. In July, seen recently in the healthcare tensions boiled over as Kemp legislation space. In July, the even announced he would take governor signed a new law legal action against the Atlanta cracking down on surprise billing mayor over the issue, although he in hospitals. This is when the soon reversed course.

Pete McCabe patient is informed that certain Ciox Health emergency room physicians or Health insurance In Georgia, around 14% of the population are uninsured. surgeons are not covered by his or her health insurance The largest form of health insurance is employer after the procedure has been carried out. The new bill provided healthcare, which was around 49% in 2018 essentially eliminates the patient from being stuck but likely changed dramatically during the COVID-19 in the middle between the healthcare provider and pandemic as unemployment rates surged. Seventeen the insurer. “The status quo in Atlanta is strong. Feepercent of Georgia residents rely on Medicaid and for-service medicine is still the major driver of the almost 13% on Medicare. Across the state, 47% of those decisions throughout the local hospital systems. The living below the federal poverty level have health needs status quo works well enough for them and there is covered by Medicaid, with 28% of that demographic little incentive for change. Options for the uninsured and underinsured are highly limited. But both are remaining uninsured.

The loss of 40-50% of revenues creates a meaningful economic challenge.

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HEALTHCARE OVERVIEW

Emory University consistently ranks in the Top 25 medical schools in the United States.

going to be taken care of as most of the hospitals in Atlanta are not-for-profits. The Grady Health System is a sizable safety-net hospital. They will receive the same level of care that is provided to local insured patients,” said Dr. James Sams, CEO of Privia Health.

But the major proposal to emerge this year was Waiver 1332. The government proposes to replace the ACA and has already floated several initiatives.

In March 2019, the state enacted the Patients First Act, which called for a partial expansion of Medicaid coverage for those earning up to 100% of the federal poverty level. No concrete action has yet been taken but proposals include a reinsurance program that would cover a portion of claims between $20,000 and $500,000 and implementation of the Georgia Access Model over Healthcare.gov. Critics of the change say that the system would only force Georgia’s residents to navigate the kind of fragmented health insurance system the ACA was designed to remedy.

Community and public health Addressing public health and adopting preventive measures is one of the biggest challenges facing healthcare providers across the country. This

September, Georgia slipped to No. 46 in a countrywide ranking of healthcare systems by the Commonwealth Fund. It found the state performed well in certain aspects, such as preventive testing for diabetes, but lack of access to healthcare dragged the state’s scores down. COVID-19 has shone a spotlight on some of the health inequities that exist. In Georgia, counties with higher African American populations also have higher incidences of the virus. But an initiative between the state’s universities and research institutes seeks to address historical racism. New America and the Ford and Hewlett foundations provided funding to 20 Georgia State University and Georgia Institute of Technology faculty and graduate students to carry out a series of projects addressing challenges related to public health, criminal justice, housing displacement or disinvestment, and nonprofit organizations.

Fulton County has one of the lowest mental healthcare provider-to-patient ratios in the surrounding area, with just 486:1 compared with 2,085:1 in Forsyth County. Around 18.1% of the population reported a mental health condition and 4.3% reported serious mental health conditions in the 2017-2018 period, the latest for which data www.capitalanalyticsassociates.com

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HEALTHCARE OVERVIEW

Atlanta’s health IT industry has over 200 companies that account for more than $4 billion in total annual revenue was available. Just over 7% of adults and 12.5% of teenagers reported a major depressive episode in the same period and 5.1% of adults reported unmet treatment needs. Almost half of those adults could not access mental health treatment because of cost.

With COVID-19 lockdowns, mental health struggles have been exacerbated. According to The Kaiser Family Foundation, almost half of adults reported their mental health was adversely affected by virus-related stress. But Atlanta’s mental health services have been quick to adapt, with Odyssey Family Counseling Center now offering virtual counseling sessions and Metropolitan Counseling services recently re-trained its whole staff on secondary trauma and community resilience to deal with demand from the community.

And as a tech hub, Atlanta-based startups have plenty of options at the touch of a button. My GCAL, UpLift, TQIntelligence, notOK, Healium, Motivo and En Vue are Atlanta-developed apps aimed at combating mental health issues.

Technology and research The Health IT industry in Georgia is a national leader, with more than 200 companies bringing in over $4 billion in annual reported revenue and providing 15,000 jobs.

The bioscience industry contributes more than 100,000 jobs and an annual economic impact of $23 billion.

There are eight metro Atlanta companies ranked among the Top 100 in the nation by Healthcare Informatics Magazine, and collectively they have revenues totaling almost $5 billion. And the industry is only growing, with medical office space in Atlanta expanding by around 1.6 million square feet from 2018 to 2019 to reach 16.8 million square feet. Georgia’s medical school graduates often stay in-state, creating a rich ecosystem between medical innovation, research and practice.

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Atlanta startups include Sharecare, a health community platform, Pursuant Health, which provides health screenings, Payspan, for healthcare reimbursement services and iMedX, which handles revenue cycles for healthcare providers. Atlanta is also ranked third in the country for tech talent labor pool growth and has the second-most prestigious biomedical engineering program at Emory and Georgia Tech. And as more startups establish in the area, and more talent stays, the more money that comes flooding in.

One of the silver linings of the COVID-19 pandemic was undoubtedly the rapid adoption of telehealth services. Many hospitals were already dipping their toes into the telehealth arena, but when the pandemic came along and pushed them headlong into remote medicine, many were surprised with the ease at which they learned to float. “The pandemic is also encouraging more health systems, which were perhaps reluctant to welcome change, to adopt new solutions like telehealth. The volume of daily televisits

The Atlanta region has been a national leader in research studies for more than three decades.

HEALTHCARE OVERVIEW

Greg Seigel Managing Director – Seigel Advisory Services

The trend over the last 20 years is that physician compensation has decreased, at least commensurate to the work that’s being produced. What most physicians have to do is to become more efficient and try to take other insurance or medical fees. To grow, physicians need to stabilize their expenses. For physicians to maximize the value of their business, it typically requires about a year of foresight because when prospective buyers come looking, they are going to want to see at least the last 12 months of business.

With about a year of preparation, the investment banker can advise physicians on the ways they can expand revenue, whether or not expansion is advisable and whether to hire more doctors or negotiate better contracts with insurance companies.

has skyrocketed to more than double the previous rate in some cases. The modern consumer enjoys the convenience of this technology and many progressive healthcare systems are supporting this change,” said Stephen Kahane, CEO and president of Ciox Real World Data at Ciox Health.

Telehealth is an industry worth $81 billion and proved indispensable during the pandemic. Now, the question is where its long-term place will be in the medical field since in some circumstances, there are no replacements for an in-person consultation.

The consensus among the medical community is that telehealth is here to stay, especially for rural communities, but the industry seems to be moving toward a more hybrid model of healthcare.

Looking ahead The last year has provided a steep challenge for Atlanta’s healthcare system. Working through the backlog of elective surgeries while trying to get back into the black will be the top priority for many. But many hospital systems entered the pandemic with operational strength and strong balance sheets, positioning them well for a rebound.

As Atlanta overcomes the pandemic and adapts to the new normal, further challenges are likely to arise, including staffing shortages and long-term health complications that cannot yet be predicted. But with crisis comes opportunity and Atlanta’s strengths in medical innovation and research will help it strengthen its position as a world-renowned healthcare leader. www.capitalanalyticsassociates.com

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Pandemic Response: As COVID-19 emerged in China at the end of December, few people would have guessed what would happen next. As the virus spread to the rest of the world in a full-blown and devastating pandemic, leaders from all sectors were forced to react. Without a playbook to rely on, metro Atlanta’s public and private sector leaders continue to work together to emerge stronger in the end.

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Standing together: Cooperation is the name of the game as local leaders fight the battle of a lifetime There was no playbook for handling COVID-19 when it hit U.S. shores in the first months of the year. The actions taken in China, where the outbreak originated, and in Europe that became ground zero for the pandemic in the early months of 2020 were the initial signposts. The only ground rule: Do something, and quickly.

Like other countries around the globe, social distancing and shelter in place became the norm in the United States as the virus spread. Lockdowns were imposed, businesses were shuttered and by mid-March, local economies had ground to a crawl. While the federal and state governments controlled much of the response narrative, local governments were also acting, using whatever tools they had to first, limit the damage, and second, prepare for recovery, even without knowing when that might be.

In the Atlanta metro region, action continues to take the form of cooperation, while keeping an eye on revenues and budgets. With all hands on deck across every city department and agency and local business chambers and associations, the region’s leaders took a hard look at the landscape in the hopes of emerging stronger at the other end. What “recovery” will look like remains unknown.

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“At the outset of the pandemic, we knew it was going to force upon us new ways of doing business, and some will become permanent,” Sandy Springs Mayor Rusty Paul told Focus:. “Necessity being the mother of invention, we were forced to look at how we operate and find ways to conduct business outside the traditional in-person office environment. We found that we can run an 110,000-people city working from home.”

Initial steps The initial steps, of course, were out of the region’s hands. The first case detected in Georgia was on March 2, its first death was on March 12. As the severity of the virus in the state deepened, Gov. Brian Kemp on March 14 issued an executive order declaring a public health state of emergency and authorizing the callup of the Georgia National Guard to state active duty in preparation and response to COVID-19. In the following days and weeks, new orders would come, including school closures, closing bars and nightclubs, limits on gatherings and the now common “shelter in place” order for specific populations. The statewide order to shelter in place dropped on April 2.

Local cities like Atlanta took action even earlier. ( )

PANDEMIC RESPONSE INTERVIEW

Strong, resilient Conservative budget approach proves a benefit during the pandemic

Patti Garrett Mayor – City of Decatur How do you see Decatur emerging from the COVID-19 outbreak?

We have always had a conservative budgeting process, and that is serving us well in the current climate given that our permitting and other revenues are down. Like other cities, we don’t know how long or how much we will be affected or whether or not we will receive any assistance through federal or state funds. We are facing unprecedented budgetary considerations and will make adjustments. Decatur is a strong and resilient city and we value our small business community and “vibe.” We have partnered with the Decatur Development Authority to provide a small business loan program with community match opportunities.

We want to help ensure that we emerge from the COVID-19 outbreak as a united and even stronger community for all and that we are open for business.

What vision does the city have for the Legacy Park project?

We recently purchased the 77-acre Legacy Park, and the nonprofit Legacy Project is helping to manage the property. There is a 20-year plan outlining exactly how the property will be used but the Legacy executive board is discussing the possibility of providing some low and medium-density affordable housing on the land. Other ideas include an artist village and sports and recreation facilities.

How is the city tapping into its academic talent and educational institutions?

We have a number of great schools in the area, like Emory University, Agnes Scott College, Georgia Tech and the Columbia Theological Seminary. We partner with these academic institutions to encourage students to enjoy the city through internship opportunities, the arts and town planning programs. We are always

looking for new ways to partner with these institutions and nourish those relationships.

Which industries do you think could thrive in Decatur going forward?

The Task Force for Global Health, an international nonprofit organization, is headquartered in Decatur and has recently expanded its presence in the city’s Downtown area. We have partnered with them and they have served as a great resource, particularly during the pandemic. The Centers for Disease Control and Prevention (CDC) is also located just outside our city limits. Public health is one of the industries that we would really like to promote, including nonprofits and related businesses, because we believe it would fit well into the city’s culture. www.capitalanalyticsassociates.com

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®

oundtable:

Mayor’s corner Elected officials in four Atlanta communities discuss their city and the key elements that make them attractive to residents and businesses.

Eric Clarkson Mayor City of Chamblee

What is Chamblee doing to improve its infrastructure?

We did a study related to running an autonomous shuttle in Chamblee. I am a firm believer that technology is something that will help us all move forward. We were a suburban community but that’s no longer the case, as we have increasing density. Being where we are as a transportation hub with roads and the airport, densification was going to happen, but we don’t want to get stuck in traffic. I think that what we are doing and working toward right now, looking at technology to help us, are connected autonomous vehicles.

What opportunities from logistics and distribution is the city looking at?

We’ve been approached recently by some of the largest distribution companies in the area. We are pretty close to the geographical center of metro Atlanta’s population, and we’ve got trains, planes and automobile access, so there are companies looking at us. Chamblee has an industrial past. That’s not something that we are relying on looking forward but I think some clean industry and some warehouse distribution could work here. For me, it’s all about the built environment, how it interacts with the other uses around it, and whether it brings good jobs. We wouldn’t want something like what you see out on I-85, 30 miles outside of Atlanta, where they’ve got huge warehouses with 18-wheelers coming in and out. I’d also like to mention the high-tech and biotech companies. We have a lot of old warehouses that are being adapted and reused for smaller office spaces now.

We also have part of the Centers for Disease Control and Prevention (CDC) here.

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Steve Edwards Mayor City of Sugar Hill

What impact has the E-Center had on your community?

Most of our businesses in Sugar Hill are retail, restaurants, office and home-based businesses, with a bit of industrial activity. The E-Center is about 80% leased up.

The pandemic has slowed things down on that front.

The project includes a 406-seat performing arts center called The Eagle Theatre, a gym and several classrooms, and about 35,000 square feet of retail all owned and operated by the city. We have been patient in selecting our tenants. We are trying to get the right fit, the right tenant for the E-Center and the right tenant mix for our Downtown. So far, we have had a good experience in finding them, staying away from the chain-type restaurants and instead favoring entrepreneurial, family businesses that want to make a run at it. That is our primary differentiator. We want to create an experience that separates us from mall concepts, such as the Mall of Georgia.

What is the ultimate goal for multitrail projects and the walkability aspect of the city?

Those are among the reasons someone would want to pick Sugar Hill: walkability and being able to connect different parts of our city by walking or riding a bike. We have a 16.5-mile greenway that was launched in 2019 and it will eventually connect to other trails in Gwinnett County and Fulton County and ultimately over 100 miles south to Newnan. We are convinced that being able to ride your bike, walk or skateboard to different parts of our city, and into other cities and destinations, will become an immeasurable selling point to buyers and sellers of real estate in the city.

PANDEMIC RESPONSE ROUNDTABLE

Jim Gilvin

Mayor City of Alpharetta

How is Alpharetta tapping into its positive demographic inflows?

The city of Alpharetta usually has one of the highest daytime increases compared to nighttime population in the entire nation. On a typical weekday our community attracts about 60,000 people from all over the metro area. They come to Alpharetta to work in our employment centers, shop in one of our retail centers or just enjoy some of the dining and entertainment options available here. Alpharetta’s 20 million square feet of Class A office space centrally located within the fast-growing northern arc of metro Atlanta allows us to support business and lifestyle opportunities in a unique environment only 30 miles from Hartsfield Airport. Of course, the COVID-19 outbreak has had a major shortterm impact on our economy as companies reduced the number of employees working in commercial office spaces, which negatively affects the hospitality and entertainment businesses who usually serve that population.

How is the city drafting its 2021 budget to address the pandemic’s impact?

On a local level, communities are not as dependent on sales and income taxes. For the most part, we are anticipating 14% revenue decreases for 2020 but property taxes generally take a few years to adjust. So, while we expect a substantial short-term revenue loss, we continue to make the investments we need to in 2020. As long as we are able to manage the recovery well, we do not believe it will cause long-term damage to the growth and development of our community.

Mike Mason

Mayor City of Peachtree Corners

What factors are driving population growth in Peachtree Corners?

It is the town center. The walkability. It is our entire vibe.

We have been a city for eight years now and people’s perception of Peachtree Corners is that it is a bedroom community. People who do not know the city are unaware that our ratio of jobs to citizens is 1:1. The city has close to 43,000 residents and just as many jobs.

Peachtree Corner is not a bedroom community. It is a major regional job hub. To the south, Norcross has about 15,000 residents with a job ratio of 1.2:1. Norcross has a lot of jobs as well. Because of our proximity to 285 and I-85, we are in an area that is close to Atlanta, with good transportation, so what you find is that we have a good mixture of demographics.

What has been the impact of Tech Park?

Tech Park is the home of Curiosity Lab, a 1.4-mile autonomous vehicle testing track. This is one of a kind and we are getting a lot of attention. We are making strides in autonomous e-scooters, which are GPS enabled and can put themselves away at the end of the day, eliminating piled up scooters on the sidewalk. We have companies testing this concept at Curiosity Lab. Other major Atlantabased institutions such as Delta Airlines and Georgia Tech are using Curiosity Lab as well. For example, Delta Airlines has more four-wheeled vehicles than they have planes and they need to make them autonomous. Together with Georgia Tech, they are testing these ideas out at Curiosity Lab. Peachtree Corners is a partner of Georgia Tech. The university hosts many classes, such as coding bootcamps and Big Data analytics, at our Curiosity Lab classrooms. www.capitalanalyticsassociates.com

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PANDEMIC RESPONSE INTERVIEW

Thriving Forward-thinking initiatives and strengthing quality of life remain key, despite the pandemic

Derek Norton Mayor – City of Smyrna operate and serve the community. Beyond residential and service-oriented retail, the pharmaceutical company UCB had started work on a sizable expansion project that we approved and supported with credits.

Besides being a large expansion, the UCB project is also poised to host the most energy-efficient building in the state. Glock, one of our largest employers, also continues to expand its operation. We are also looking forward to completion of substantial investment

by Emory on the former Emory at Smyrna hospital campus. Prior to the pandemic, we were looking at future growth with several feasibility studies, one of which is a Downtown master plan study. We are looking forward to continuing forward-thinking initiatives as well as strengthening the quality of life in Smyrna post-COVID-19 as we had been doing prior to COVID.

How did the City of Smyrna close 2019 and tackle the emergence of the pandemic?

In terms of property and community value, the pandemic does not seem to have slowed interest in Smyrna. Home values were and remain strong, if not stronger with values having been on the rise and remaining steady. Our year-over-year housing appreciation rate has been 10.2% over the state average of 7.5% and the national average of 3.8%.

Large projects in the Downtown had been completed and have been contributing to Smyrna thriving.

We had completed the Jonquil mixed-use project, as well as the Belmont Hills mixed-use project and had been experiencing the halo effect of those combined developments. The businesses community, restaurants and services have adjusted and continue to 162 | Focus: Atlanta 2020 | PANDEMIC RESPONSE

How has the pandemic changed priorities for the 2021 city budget?

We addressed the immediate knowns by reducing the budget by approximately 20% with cuts in most programs. It puts us into use of reserves for about $500,000. We have been highly fiscally responsible and have $18 million in reserves for times such as these.

What are the city’s top priorities toward 2021?

The Downtown refresh is top of mind, as well as improvements to the South Cobb Drive Corridor. Both are major projects that will be hugely beneficial for the city of Smyrna in the long term. Making sure that all areas of Smyrna feel and are connected is a focus.

We are also concentrating on connecting parts of the city, particularly those areas that were annexed in previous years and by the previous administration on the southwest side of our city, including in and around Riverview Landing.

PANDEMIC CONSTRUCTION RESPONSE OVERVIEW

Sharon Mason President & CEO Cobb Chamber of Commerce

The 30-59 age group accounts for the greatest number of COVID-19 cases in Atlanta.

( ) Atlanta Mayor Keisha Lance Bottoms signed her own executive order on March 19 closing a variety of establishments. Posting the order on Twitter, Bottoms wrote that she had “signed an Executive Order, effective at midnight, limiting restaurants to take out service, closing bars, gyms, etc.”

With businesses shuttering, the local community also took steps to ensure a response to the emerging needs of those hurt by the pandemic and the resulting economic fallout. The Greater Atlanta COVID-19 Response and Recovery Fund, launched in March, provides grants to nonprofits that support workers and their families. “The coronavirus pandemic has ushered in a ‘perfect storm’ of healthcare and economic crises that have not been seen in our lifetime. These crises have exposed and exacerbated the impacts of systemic inequities, especially racial inequities, that many Georgians have been suffering under for generations,” the Community Foundation for Greater Atlanta wrote on its website. The fund was formed by philanthropic, government and corporate partners and had distributed more than $18.4 million across the region as of mid-October.

Business reaction The business and academic communities also responded to the pandemic. As the seriousness of the

How did Cobb County close 2019 and transition into the COVID-19 landscape?

2019 was a fantastic year of growth, momentum and major progress for our community. In 2019, we received a five-star accreditation from the U.S. Chamber of Commerce, the highest level of recognition possible.

There are over 7,000 Chambers of Commerce in the nation and this award is only given to the top 1.5%.

Also in 2019, we attracted close to 2,500 high-quality jobs from 20 companies across a number of industries that we either recruited to Cobb or that we helped to expand. Moving into 2020, we continued to experience this boom in the first quarter, launching a new brand and we moved into our new headquarters with 360 views of our community, helping us market the county and region in a greater way. Then COVID-19 hit and all of us pivoted and completely focused on the economic recovery.

How is Cobb County navigating toward recovery?

Our chamber has been focused on recovery from day one of the pandemic. We formed an Economic Recovery Task Force and brought together many of the industries that were at the worst end of the pandemic: small businesses, tourism, nonprofits, to name a few.

We have focused on both short-term and long-term solutions, fed by surveying and hard facts to produce an accurate picture of the impact on each industry and geographic area and the financial assistance needed. We are advocating for and championing the businesses most hurt by this pandemic at the federal level to channel federal stimulus money to our local businesses. Through the CARES Act, the Cobb County government had an allotment of funds, made $50 million available in small-business grants and partnered with our SelectCobb economic development arm to administer the small business grants. Thousands of Cobb-based businesses will receive the boost they need to overcome this crisis thanks to the Cobb County Board of Commissioners. www.capitalanalyticsassociates.com

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PANDEMIC RESPONSE OVERVIEW

#FlattenTheCurveGA was a popular social media tag used to encourage Atlanta residents to practice social distancing.

virus became increasingly evident in the state, the Metro Atlanta Chamber, which represents businesses, colleges and universities, and nonprofits, on March 19 convened a virtual conference of its more than 270 board members, CEOs and community leaders to discuss the region’s response. “Even in the midst of this ever-changing environment, one thing was

clear: metro Atlanta’s business community is playing a critical role as we face this unprecedented pandemic.

We are actively asking employees and others to adhere to guidance from federal, state and local authorities and making necessary adjustments in our organizations in response to current challenges and in preparation for the days ahead,” said Hala Moddelmog, President and CEO, Metro Atlanta Chamber in a news release.

Patricia Wheeler, mayor of the city of Stone Mountain, is also focused on getting ready for an eventual reopening. “We have done all the proper things as far as sanitation and CDC guidelines are concerned. We are looking forward to getting the center back in business.

The park is also a highly sought-after tourism landmark due to its size. We are drafting an initiative for one of the four parks in the city that includes a community garden. We are examining the possibility of increasing the park’s capacity, including a bandstand and using the park for our farmer’s market. We are polishing the details for its redevelopment to confer it the status of signature landmark within our city.”

Cooperation has been the key to navigating the pandemic, said Vanessa Fleisch, mayor of Peachtree City. “(The) businesses here all really adapted and shared information, which is wonderful: they acted as a community and really came together. We have a number of manufacturers here, like Panasonic and TDK, and we have a number of wonderful manufacturing facilities that were obviously impacted

by COVID. They reached out to one another regarding best practices. We tried to encourage that as much as possible because retaining our businesses is very important to us.” Fellow Mayor Vince Evans of the city of

PANDEMIC RESPONSE OVERVIEW

Tim Young City Manager – City of Hapeville

Fulton Countyhas done a lot, setting up testing centers and moving them around. It has also helped with food programs, working together with the Atlanta Community Food Bank, sponsoring people who need help. Up until June 2020, we had been delivering 300 meal boxes on a weekly basis. Over the months of September and October, we partnered up with Wells Fargo to continue these efforts. We are working to obtain some funds from the state and the county to help our local businesses, given the diminished activity. We are strongly focused on keeping our development pipeline on track, both on the hotel, business, and residential fronts.

Conyers added that getting the right mix of businesses will also be important going forward. “The pandemic has accelerated changes in people’s shopping habits, which were evolving, anyway,” he said. “Businesses that are going into shopping centers right now need to be businesses where people really need to touch and feel and pick up their products, instead of those where you simply get in line and order. The business mix will be different now than a couple of years ago.”

Decide DeKalb, whose primary purpose is economic development and attracting and retaining businesses in the county, widened its purview to help small businesses, including participating in the Response and Recovery Fund. In particular, the authority decided to focus on the challenges faced by minority and women-owned businesses. “Although our organization did not play a significant role in funding small businesses before COVID-19, once the pandemic hit, we stepped up to cater to the need for funding and providing the capital needed for these businesses to survive. An important focus for us was tending to minority and women-owned businesses in underserved communities,” said Dorian Debarr, interim president of Decide Dekalb. “We started to raise capital to launch a small business loan fund with the aid of United Way and Advance DeKalb. The county also launched its own business loan program for businesses not eligible for PPP loans. Decide DeKalb is providing technical assistance for applicants to this loan fund. Going forward, we will continue to support small businesses through lending and affordable capital. We want to see these businesses stay in DeKalb and grow in DeKalb.”

Delta Airlines In November, Delta Airlines reported a 3Q loss totaling $5.4 billion as the pandemic torched the industry over the summer as travelers stayed home and the airline industry took unprecedented steps to mitigate transmission. That loss was comparable to the previous quarter. For the same period in 2019, it had posted a profit of $1.5 billion.

Delta, one of the Atlanta region’s leading employers whose hub airport is Hartsfield-Jackson, was among the first to enact measures the rest of the industry followed when the pandemic hit. These included holding its middle seat open, which it expects to continue into 2021, making masks mandatory on all flights and giving passengers up to two years to rebook flights. The airline has pushed back its expectations to break even by the end of 2020 to spring 2021. The airlines and the government in April agreed on a payroll relief package worth $25 billion. Delta received $5.4 billion.

‘One Atlanta’ In July, the city council, Invest Atlanta and WorkSource Atlanta unveiled an overarching plan whose stated goal is to address the “challenges and barriers that limit economic mobility.” The One Atlanta: Economic Mobility, Recovery, and Resiliency Plan was launched in July 2020. Although it had been in the works for more than a year, COVID-19 highlighted the urgent need to get it done. “The impact of this pandemic has only heightened the sense of urgency to build a resilient and equitable foundation for the Atlanta community, that will allow us to emerge from this www.capitalanalyticsassociates.com

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PANDEMIC RESPONSE OVERVIEW

After a November surge in COVID cases Atlanta was moved back into the red zone for the first time since mid September.

crisis stronger than ever,” said Bottoms in a story on the Business Facilities website.

The plan lists five key objectives: creation of good jobs; access to good jobs;small businesses expansion, particularly targeting startups and small businesses from disinvested neighborhoods; neighborhood investment; and affordable housing. Of course, no matter the crisis, money is needed. With businesses closed, revenues are down. Hospitality and tourism are key industries in Atlanta and tourists stopped coming amid border closures and as flights stopped operating. Cities and municipalities are now looking at their budgets to determine the next course of action. “Our property taxes pay for police and fire services. Any kind of maintenance, public works, recreation and administration expenses are financed from other sources of revenue, among 166 | Focus: Atlanta 2020 | PANDEMIC RESPONSE

those the sales tax. That’s where our biggest drop off was,” said Fleisch. “In our case, the question is always about how to continue to provide the highest level of service when your sales tax is dropping off.

It’s been about balancing the budget. What was done was a strategic reorganization to save between $800,000 and $1 million, which we needed to cut from the budget.”

Challenges As with any crisis, there are challenges and part of the early story was the decision to open or remain closed.

Amid the uncertainty, and conflicting messages from Washington, the state decided to reopen some businesses at the end of April. Gov. Kemp, of course, wasn’t the only governor taking such action. A number of states across the country decided they would relax

PANDEMIC RESPONSE OVERVIEW

restrictions in the face of a worsening economic crisis as the pandemic spread. But his action, taken despite health experts warning it could lead to a spike in cases, raised the ire of many local leaders, including Atlanta Mayor Bottoms, who asked residents to stay inside nonetheless.

In an op-ed for the The Atlantic, Bottoms wrote: “As the mayor of Georgia’s largest city, I expressed opposition to Governor Brian Kemp’s recent order allowing certain businesses—dine-in restaurants, gyms, hair and nail salons, barbershops, tattoo parlors and bowling alleys—to reopen before health experts say doing so is safe. I hope the day for Atlanta to endorse such a move will come soon, but it is not here yet.”

Kemp, nonetheless, kept his plans on track despite an uptick in COVID-19 cases. In mid-August, though, relaxed his position on statewide mask use, allowing local authorities to decide on the requirement for wearing a mask. Previously, in July, Atlanta had reverted to Phase 1 of its own reopening plans after moving into the Phase 2 at the end of May and seeing a surge in cases.

In October, Georgia remained in the throes of the pandemic, and in a state of emergency, which was set to stay in place through Nov. 9. Residents from Georgia who travel to New York, New Jersey, Connecticut and Chicago must quarantine for 14 days. While there are no longer limits for group parties in restaurants, bars can only host 35% of their capacity. In Atlanta, public schools had canceled in-school classes at least until the end of the year. Residents were encouraged to stay at home but to wear masks if they go outside.

Elizabeth Carr-Hurst Mayor City of Fairburn

How was the transition for city staff and the city itself into the COVID-19 landscape?

City hall never closed because I was always here. Even though there is a pandemic, there is still work to be done.

We still have to keep the city running. At the beginning of the pandemic, nobody knew how to handle it and everyone was scrambling to get PPEs. We were able to procure disinfectant wipes from Clorox and alcohol gel, which was unavailable in the city, and we distributed these supplies to our employees. There was also some shock for Fairburn employees because no one in the city had ever really worked from home. Our finance department, for instance, could not work from home because they need to access sensitive information that should not be accessed outside of city hall.

How are you promoting workforce development?

We have been working with some agencies in the city of Atlanta related to job skills. Fairburn does not have a training program but we ask the businesses coming in to first hire from the city. But a lot of the warehouses doing distribution are robotized, which is something else we have to deal with when it comes to generating jobs. We think the way forward is training our residents in computer skills at a higher level.

What is your outlook in the short term?

This pandemic has been a learning curve but the positive is that local mayors in South Fulton have strong communication channels. We were able to discuss best practices and share information. We are uncertain about travel next year, so I had to cut travel in half. And even though we need staff, we had to cut recruitment.

As a city, we generate our own electricity and bill our residents who use our electricity and water. At the beginning of the pandemic, we had to put a moratorium on utility payments for three months, which will impact the budget. Looking forward, we have a $4.9-million LCI streetscape project, which will have a huge positive impact on the city.

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Atlanta’s public transportation system has 91 total bus transit routes.

As the pandemic rages, communication will be increansingly relevent. “We’ve spent a great deal of time trying to encourage our citizens to be engaged and informed about what is occurring in their community. From development, to re-zonings, to public safety, to political issues related to the city, I want people to understand basic civics and local government,” said Derek Easterling, mayor of the city of Kennesaw. “If you understand that the greatest amount of influence you have as a citizen is in your local community, what a difference you can make. I want people to be more concerned about what’s going on in their local community. If a person wants to make a difference, they need to know and understand the issues impacting their friends and neighbors. We spend a lot of time on educating and communicating with our residents.”

Looking ahead Nearing the end of 2020, the region continues to deal with the pandemic, but there are bright signs.

A report in the Atlanta Business Chronicle said the city’s commercial office segment remains a success story even while the sector floats through troubled waters elsewhere. The article, written by Gail Crowder

PANDEMIC CONSTRUCTION RESPONSE OVERVIEW

Mike Boyce Commission Chairman Cobb County

of Avison Young in Atlanta, cites a few examples of the successes, includes Microsoft leasing space in two new office towers, Mailchimp’s HQ expansion, Google’s move to 1105 West Peachtree and Zillow’s new 52,000-square-foot HQ. For other sectors like hospitality and retail, these remain difficult times. But here too there are signs of improvement, said Tommy Allegood, mayor of the city of Acworth. “When the world changed in early March 2020, so did the buying patterns of our citizens.

There has been an impact on our retail. We basically complied to a fault with the governor’s mandate. With the exception of social distancing requirements and the request that citizens ages 65 and older and the medically fragile stay at home as much as possible, all of our businesses are again open.”

Still, like other countries around the world, the risk of a second wave of contagion is top of mind for many. On Oct. 16, the United States recorded the most infections in a single day since July. Georgia was among the group of 37 states to see a spike in cases of between 10% and 50%. The state and the Atlanta metro region certainly are not out of the woods, but local leaders are taking the steps necessary as they continue the battle against the pandemic.

How are you supporting small businesses through the pandemic?

We had to work with the federal government and the state on how we would get businesses and people from all economic strata in the county through the fall.

No other county in the metro area has committed $48 million from the funds from the CARES legislation for grants for small businesses in the community. While not exclusive, the intent of the grants was to fill the gap for those companies that are not big enough to qualify for federal support. For example, for those businesses who did receive PPP loans, we opened the grants program back up in recognition that our original criteria were too restrictive. We have a committee to help advise us on this. More than 2,000 businesses will benefit in some way from these small-business grants. Additionally, we also have a program in place for nonprofits.

What could the SPLOST initiatives mean for future infrastructure projects?

It is important that we emphasize that SPLOST has become an accepted way of using the public to fund capital projects. Use of public funds would require a higher millage rate. SPLOST is an integral part of our growth. This year’s proposal for the SPLOST renewal has about $230 million allocated to the resurfacing of roads alone, equating to around $40 million per year.

The SPLOST allows us to recover the costs of this work not just from residents but from visitors.

What are your priorities going forward?

Our county depends on people working and my focus is doing everything possible to continue attracting businesses to the county. My first focus is to continue to send the message to our citizens that this is a partnership, which can be seen through our face mask campaign. When we get into 2021, my challenge is once again to focus on 2050, to serve a population of 1 million people. www.capitalanalyticsassociates.com

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Metro Atlanta Speaks 2020 COVID results: The Atlanta Regional Commission released its annual Metro Atlanta Speaks 2020 public opinion survey in mid-November. The survey, started in 2013, is the largest in the Atlanta region and covers 10 counties, including the city of Atlanta. This year’s survey included a snapshot of the effects of the COVID-19 pandemic.

Here are the results: Extent of COVID Impact: 2020: No Impact at all

7.3%

Know Anyone That Has/ Had COVID-19?: 2020:

DK

DK

1.9%

1.8%

Minor impact

No

24.0%

39.9%

Major impact

Yes

66.8%

58.4%

Source: Atlanta Regional Commission

Source: Atlanta Regional Commission

Extent of COVID Impact by County: 2020: Major impact

Minor impact

No impact at all

DK

100% 90% 80% 70%

72.2%

71.9%

63.3%

62.7%

60.4%

65.5%

64.4%

23.8%

26.1%

26.9%

27.4%

30.1%

34.2%

19.3%

8.9%

9.5%

10.3%

7.8%

8.2%

9.2%

8.8%

6.0%

City of Atlanta

Clayton

Fayette

Gwinnett

Douglas

Cobb

Rockdale

Cherokee

69.9%

69.7%

69.2%

20.6%

18.6%

6.4% Fulton

57.4%

60% 50% 40% 30% 20%

21.6%

21.1%

4.5%

5.8%

Henry

Dekalb

10% 0%

Source: Atlanta Regional Commission

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Know Anyone That Has/ Had COVID-19? By Race/ Eth: 2020:

32.5%

Other

60.5%

37.1%

Black

60.4%

37.9%

White

55.9%

43.3%

2.4%

66:7%

0.8%

DK

1.7%

Latino

No

0.8%

Yes

Source: Atlanta Regional Commission

Education: With two of the nation’s top-ranked colleges for innovation and one school ranked in the Top 25 overall, metro Atlanta continues to attract attention for a stellar educational system that is weathering the pandemic storm.

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Adept at adapting: Local education institutions are among the nation’s leaders in a number of categories Metro Atlanta is known for its penchant for rebuilding, racial equity and sound business landscape, characteristics that also form the bedrock of one of the region’s most important sectors: education. Led

by Georgia Tech, Georgia State and Emory University, local education institutions are among the nation’s leaders, earning high marks in a number of categories.

With the pivot to a pandemic landscape, they’ve also proven themselves adept at adapting.

The region’s technical and higher education system also is as diverse as the students enrolling in its classrooms. Home to 57 public and nonprofit colleges, universities and technical schools, the region attracts more than a quarter million students each year. And against all odds, enrollment that was expected to drop amid the pandemic has, in fact, roared to life, pointing to a robust recovery in the post-COVID-19 world.

The enrollment figures also coincide with the level of higher-education attainment in Atlanta, which outperforms the state overall. Among those over 25 years old, 53% hold an advanced education compared to 36.8% of the general Georgia population, according to the Statistical Atlas.

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Landscape The pandemic undoubtedly created challenges for students, faculty and staff. Institutions quickly transitioned to the online learning environment in the midst of the spring semester but not without a great deal of adjusting and constant communication with the student body, as institutions balanced maintaining curriculum, pedagogical standards and student wellness.

The sudden shift to remote learning, the COVID19-related rise in unemployment and the overall contraction of the economy painted a dire picture for Atlanta’s higher education landscape and fall enrollment figures. However, for the 2020-2021 academic school year, many institutions saw record enrollment numbers for incoming students.

Georgia Tech, or more properly the Georgia Institute of Technology, was among the leaders in enrollment. The public research university saw record enrollment across the board for the summer and fall semesters with record-breaking numbers in first-year, transfer and dual enrollment students.

Georgia State University set new records for the largest enrollment and freshman class size in the ( )

EDUCATION INTERVIEW

Connections Connecting students and global companies is a top priority

Brendan Kelly President – University of West Georgia How would you characterize the formative role of the University of West Georgia?

We want to provide the type of experience and opportunities, exposure to talent, knowledge and understanding that allow students to move from high-school seniors to leaders in an extensive range of notable fields. Our No. 1 job is connecting people to the world, so they can participate in the economy, lead communities and businesses and create positive change. UWG is perfectly placed for that. We have the opportunity to bring people outside of Atlanta and from throughout the South Atlantic region into a beautiful university town, which gives them a chance to focus on studying, become involved with a mentor and be transformed by the university experience.

Students get connected to global companies just down the road, with internships and opportunities that are not available in every university in the United States and certainly not available in the same way in every major metropolitan area in the country.

What is your take on higher education affordability?

Affordability has been an issue in higher education for a number of years but Georgia invests in higher education and makes certain its universities provide the type of talent needed to advance our state. That investment is at a higher level than in many other states and that is why we get better results.

Affordability and accessibility go hand in hand.

We take every measure possible to create the highest quality higher education experience we can produce as a university. We do it in a way that allows graduates to take advantage of opportunities in the marketplace without the burden of carrying the cost of their degree with them for the rest of their life. We try to make certain we are providing the type of support that would help mitigate costs for students at the highest

level possible. That is where most of our fundraising efforts exist. It is a consideration in every service we offer.

How is UWG helping to improve workforce skills and add new skills?

It is one of the things a regional comprehensive university has to do. Our world changes; our economy changes. As a university, we make a point to continue to develop credentials that match up to transitions in the economy. Some of those credentials do not exist at the moment, at all, so you refer to certificate programs.

That is precisely how we are looking at it, as a way to reshape degrees to match up to the competencies people are going to need rather than shaping degrees around the competencies that have existed. www.capitalanalyticsassociates.com

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EDUCATION INTERVIEW

Moving forward Individual accolades are a nod to progress and business partnerships

Victoria Seals President – Atlanta Technical College initiatives, the Center for Workforce Innovation, which is a partnership between Atlanta Technical College, the city of Atlanta and the Atlanta Committee for Progress. It really highlights the importance of our business and industry partnerships. We have those businesses leaning in, not just financially, but substantively, by having their staff connect with our instructors and making sure that our curriculum is properly aligned with their workforce needs.

The other component of the partnership is that they are guaranteeing our students an opportunity to be interviewed and to get work experience in their companies. The Center for Workforce Innovation is a major initiative for us. We are continuing to focus on workforce development, we continue to have a 99% job placement rate and we are proud to continue to help the city of Atlanta and its citizens achieve economic mobility.

What does it mean for Atlanta Technical College that you’ve been named 2020 Southern Regional CEO? It means that the college is moving forward. It’s not just a personal achievement, the award speaks volumes for the progress that we are making at the college. Any award that I receive is really kudos for the team. In the time that I’ve been here, I’ve been really focused on better positioning the college, helping people understand the amazing opportunity that we are for our citizens. This award highlights the progress that we’ve made and the business partnerships that we have grown. It is humbling anytime that a regional award of this type, with national attention, happens, but I’m more excited that it highlights the achievements that we’ve made as a college.

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Which programs have grown the most in demand during this past year?

Because we are in metro Atlanta, the IT fields are really exploding and everything around cybersecurity is growing. Cloud computing is another emerging area of interest and demand. Those are the most in-demand areas. Logistics is continuing to grow with the deepening of the port in Savannah, which started five years ago. We are now starting to see more opportunities around supply chain, logistics and truck driving. The workforce opportunities have resulted in an increased demand in training for those areas.

Healthcare also continues to be one of the areas of need for all of metro Atlanta as people are retiring a little earlier but also because of the challenge we are experiencing with the pandemic. Construction is also still going on. All of the skill trades are maintaining a high demand in terms of our workforce needs.

EDUCATION OVERVIEW

( ) school’s history. The university saw 54,000 students enrolled in the fall 2020 semester, compared to last year’s record of about 53,000. Similarly, Kennesaw State University reached record enrollment figures with 41,000 students. Comparatively, the university reported around 37,000 students enrolled for the 2019 fall semester.

As if the enrollment riches weren’t enough good news, several Georgia colleges and universities topped the U.S. News & World Report 2021 edition of Best Colleges in a variety of categories. Georgia Tech ranked first in the nation in civil engineering, cybersecurity, and industrial and systems engineering, solidifying Atlanta as a leader in STEM education. Agnes Scott College, a private women’s liberal arts college, ranked first in first-year experience and most innovative liberal arts college.

Similarly, University of Georgia’s undergraduate insurance/risk management program ranked as the nation’s best. Spelman College, another private women’s liberal arts college, ranked as the nation’s top Historically Black College & University (HBCU).

Berry College topped the list for best value in the regional southern universities category.

With no end in sight for the pandemic, the balancing of in-person and remote-learning will likely remain a major priority for Atlanta’s educational sector.

Technology will play a leading role in that, said Bryan Ginn, Jr., chief campus officer at PCOM Georgia. “Technology provides great opportunities for education. For this interview, we are speaking via video from Suwanee to Miami. Especially during this time of COVID-19, our students, fortunately, have access to a wide variety of technology solutions for

educational engagement. Likewise, when a student is able to walk into a simulation center and see an operating suite with a high-fidelity mannequin on the table, they are able to gain experience by seeing the kinds of cases that they would see in an OR.” In terms of demographics, most graduates from Atlanta’s universities are Black, or African American, at 38.1%, followed by white, accounting for 36.8%, Asian at 11.9% and Hispanic or Latino at 7.07%. In 2017, more females graduated than males, 59,983 versus 54,000. It also costs students more to go to college in Atlanta than in the rest of the country. The average 2019-20 tuition and fees in the region totaled $6,476 for in-state and $20,143 for out-of-state, compared to $6,768 and $17,692 nationally. According to the College Tuition Compare website, Emory was the leader in total tuition and fees at $53,804, with Atlanta Technical College holding down the other end of the scale at $5,484.

Atlanta’s institutes of higher education are led by Georgia State, Georgia Tech and Emory University, in terms of number of degrees awarded. Georgia State led the pack in 2017 with about 29% of all degrees awarded.

Research and innovation The metro Atlanta region is itself a rising research and innovation hub, and much of that can be attributed to its institutes of higher learning. U.S. News & World Report ranked Georgia State and Georgia Tech No. 3 and 4, respectively, for innovation in the country.

In FY2018, Georgia State put $200 million into its research and innovation efforts, up by about 153% over the past 10 years. In FY19, the institution received $128.1 million in external research funding.

Leocadia Zak President Agnes Scott College

Why is it important to be ranked the most innovative liberal arts college?

The ranking of No. 1 for innovation three years in a row is unprecedented. We are also ranked first for first-year experience and No. 2 for teaching. We are also proud of our social mobility ranking, which again is in the Top 10. We will continue to offer global learning and leadership development to our students at all levels.

The other aspect of our student experience is our focus on professional success. Thanks to the support of local foundations, our students now have access to sector-specific career advisers.

What are among the school’s most popular programs?

One of the things people have to remember is that the liberal arts provide skills that employers are looking for. We hear from employers that they are searching for employees who can write, think critically and communicate effectively. That is what the overall liberal arts education provides. Some of our most popular majors are psychology, public health, English, business management, economics, neuroscience and math. We are proud of our STEM program, which is bolstered by our resource center for math and science. Many of our students tend to study a double major where they combine a STEM major with something more creative.

How has the student profile changed?

One of the factors people don’t realize is the extent of our racial diversity. We have no racial majority on our campus. As a result, ours is a special community where students can learn from each other. Coming to Agnes Scott may mark the first time some students have been in a classroom with a person of a different race. Last year, we launched a series of conversations regarding racial equity and ways to respectfully bring everyone together. Like innovation, being in a diverse environment gives our students a unique experience and perspective on life.

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Atlanta is home to 57 colleges and universities.

The cornerstone of the university’s research and innovation program is the continued development of its Science Park, with a new building slated for completion in December 2021. The new facility is expected to enhance Georgia State’s leadership in global infectious disease research, with a focus on highly infectious diseases.

For its part, Georgia Tech in November 2020, was awarded a U.S. National Science Foundation Partnerships for Innovation Grant to look into reusing retired wind turbine blades. The university has also been appointed to lead the Partnership for Inclusive Innovation, a first of its kind publicprivate partnership created to foster technology access, growth, entrepreneurship, and evolution across the state of Georgia, according to the August announcement by Lt. Gov. Geoff Duncan.

Not to be outdone, Emory, which came in 21st overall on the U.S. News and World Report rankings, the highest ranking among all Georgia institutions, announced in late October that it would start enrolling adult participants in a large-scale clinical trial of a potential single-dose COVID-19 vaccine

CONSTRUCTION EDUCATION OVERVIEW

Nicholas Ladany President Oglethorpe University

How important is a liberal arts education given the disruption caused by STEM schools?

There are a few reasons why a liberal arts education has been around for centuries. Many people misunderstand it as a dichotomy between liberal and conservative, or that it is about the fine arts. It’s really about fundamental skills, like critical thinking, writing, public speaking, inclusive excellence, interpersonal adeptness and global citizenship. If you look in magazines like Forbes, every CEO is looking for graduates with interpersonal skills, critical thinking and writing. That’s what liberal arts universities do very well compared to other places. I have worked at large, research institutions, midsize institutions and small liberal arts universities, and there’s nothing that compares to small liberal arts universities in terms of engaging students and providing them with the skills to move forward. candidate by Janssen Pharmaceutical Companies of Johnson & Johnson. Emory is also involved in a second Phase III trial for a vaccine co-developed by researchers at the National Institute of Allergy and Infectious Diseases (NIAID) and biotech company Moderna, Inc. Workforce development In addition to innovative research, the Peach State is known for its dedicated investment in workforce development and training, working hand in hand with trade, public and private educational institutions to supply the workforce needed to expand businesses and industries in the state. Atlanta, as the state’s major business and education hub, plays a large role in this regard.

As the unemployment rate shot up during the pandemic, there has been a brighter spotlight on education. Unemployment in the Atlanta metro area shot up to 12.7% in April, according to the U.S. Bureau of Labor Statistics, comparable to figures for the state at 12.6%. By September the rate had dropped back to single digits, at 6.7%, just above the statewide 6.4% ( )

What factors are driving the competitive advantages of the university?

The liberal arts skills make us competitive. Our graduates are able to be flexible and change occupations down the line. The employment landscape will change dramatically over the next decade and most jobs of today won’t exist in the same form in the future. Liberal arts institutions allow for students to adapt to jobs more readily.

What are the school’s near-term objectives and how might they be affected by COVID-19?

It’s hard to predict the next six hours, sometimes, but I think what we do is to try to hold steady to our values, to our core priorities, which in this case involve health and safety and a quality educational experience for student success. In addition, unlike larger universities, Oglethorpe is able to continue our honored tradition of providing small, discussion-based, high-engagement courses taught only by experts in their field. Although we all prefer in-person, we can maintain our high quality education experience whether we are in person or remote. www.capitalanalyticsassociates.com

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oundtable:

The HBCU perspective Leaders at Historically Black Colleges and Univerisities address social unrest, working with the business community and the impact of donations from the private sector.

Mary Schmidt Campbell President Spelman College

How would you characterize Spelman College’s state of affairs pre- and post-COVID-19?

Spelman, a liberal arts school for Black women, is one of four colleges that make up the Atlanta University Center Consortium, along with the all-male Morehouse College, research-focused Clark Atlanta University and medical school Morehouse School of Medicine. Operating as a consortium has been exciting as the four-pronged relationship is starting to take hold. We set up and continue to develop a data science initiative. We obtained a major grant from United Healthcare to do so. Our combined faculties are doing frontline research in the area of data science as it relates to a number of domains, primarily bioinformatics, psychology and social science.

What role is Spelman College playing in relation to the social unrest in the country?

The death of Ahmaud Arbery in Atlanta prior to George Floyd’s, together with other recent casualties and the widespread witnessing of such violence was unnerving for people in this country who may not have been familiar with the extent of excessive police force. For us, it was particularly unsettling because one of our students was a victim. We felt particularly called to respond to this moment as a college because of our long-standing involvement in social justice. Our faculty gathered together and created a group called Grappling with History. It started out as sharing book titles to help us understand these moments. It became a bibliography and the foundation for a cluster of courses that provide the historical and theoretical bases to engage in these difficult race and social justice conversations.

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EDUCATION ROUNDTABLE

George French

President Clark Atlanta University

What are Clark Atlanta University’s main advantages?

The competitive advantage for Clark Atlanta University, among others, is that we are a private, Historically Black College that is a Carnegie-designated research institution.

Our niche is our research in prostate cancer, which we know is prevalent in the nation. We also have a unique advantage from a historical perspective, as we have had faculty members of the stature of Dr. W.E.B. Du Bois, the first African American to earn a doctorate from Harvard.

What opportunities do you see in terms of the local business community?

The rising healthcare industry and also the fintech community both present opportunities. We’ve met with several large financial institutions since I’ve been here regarding partnerships, focusing on our technological research. We are the only HBCU in the nation that offers a Ph.D. in cyber-physical systems. When you look at data analytics and predictive models, and even elections, we know now that you have to have the right numbers on each and every state to win an election. At Clark University, we recognize that this is where data analytics comes into play so we are doing research into data analytics, data science and cyber-physical systems.

What is your view of the startup scene in Atlanta?

It’s hot. I was recently at the Atlanta Chamber of Commerce and could see the number of startups and the support from the city. It’s huge. Especially within the tech industry, there are so many new startups that are joining the Atlanta Chamber that you can see why the city is seen as an incubator.

David Thomas

President Morehouse College

How have donations from the private sector fostered affordability?

Statistically, Black students on average leave college with 30% more debt than their comparably-situated white peers. Morehouse College is the top producer of Black men with Ph.D.s in STEM-related fields. We are the No. 1 feeder of Black men to the Top 10 graduate schools in business and law. We produce a disproportionate share of graduates who go into the medical fields. Yet, our endowment is only $150 million. Part of it stems from the wealth gap between Black and White communities.

Another factor is the level at which people think they should support HBCUs. Robert Smith’s gift, a $34-million donation that paid off the federal loans that the Class of 2019 and their parents accumulated to fund a Morehouse education has had a rippling effect on other philanthropists.

How can higher education institutions work with K-12 systems to best prepare future graduates?

Morehouse College showcases efforts that are models to be emulated. At the simplest level, college students are oriented to give back to their communities. Large numbers of our Morehouse students are actually engaged in the Atlanta Public Schools by tutoring.

Our computer sciences students gathered to assist Southwest Atlanta schools and put together an event called Codehouse, with about 100 students in its first iteration in 2018. By 2019, it gathered 300 students.

We’ve been working with the local public school system to be one of the colleges that provides technologyreadiness education to them. www.capitalanalyticsassociates.com

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Thomas Hynes President Clayton State University

What were the significant milestones for Clayton State University in 2019 and early 2020?

For the seventh time in eight years, Clayton State was named by the Atlanta Journal Constitution as a top workplace in Metro Atlanta — the only higher education institution so named. In May, research from the New York Times and the Urban Institute reported that Clayton State was seventh nationally as a school exceeding its expected six-year graduation rate. We also marked the second year of a partnership in curriculum and program development with MailChimp called Launchpad, informing our students and faculty with that firm’s insights into technology and communication.

What are Clayton State’s key differentiators?

Clayton State prides itself on its small classes and personalized support from faculty. Technical support services for faculty and staff and instructional support have been part of Clayton State from a time in which it was an early adapter of computers for instruction.

That legacy continues with the University HUB, a center for student-based software and hardware support, and CELT, the Center for Excellence in Learning and Teaching, that provides support for technology and instructional excellence.

No story of Clayton State is complete without including Spivey Hall, whose season was brought to an early halt by the current public health emergency, but whose reopening will provide listeners a chance to experience what the late Ellis Marsalis called “the most fantastic little performance hall I have played – ever!”

What is your outlook for the next 12-18 months?

All of us in higher education will be entering a new environment coming out of the COVID-19 experience.

I believe we will find new ways to create the conditions for student learning, student success and community advancement, and apply them well. Learning will be the key to those advances and Clayton State will continue to see learning as our core business.

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There are over 250,000 students enrolled in higher education programs across Atlanta.

( ) reading. Importantly, the 2021 fiscal year from July 1 started with more than 10,000 new jobs created across Georgia. These jobs represent more than $3.7 billion in new investments, according to the state.

Industries that created the most jobs during the first quarter of the new fiscal year include food processing, manufacturing, and logistics and distribution, many of which are relying on Atlanta’s technical colleges and educational institutions to meet their workforce needs.

Georgia’s track record for attracting new industries and companies is largely a result of the state’s probusiness landscape and efforts to nurture a marketready workforce in collaboration with the technical colleges in the region. The Technical College System of Georgia oversees Georgia’s 22 technical colleges.

The system’s mission is to build a well-educated, globally competitive workforce through technical education, adult education and customized training

EDUCATION OVERVIEW

for Georgia’s businesses and industries. “One of the true benefits the state of Georgia provides and which is a primary differentiator against our competition is our technical college system. The state has invested billions and billions of dollars into the Technical College System of Georgia. Having a strong understanding of our competitor states and knowing many of the commissioners in other states, we can safely say it is the best technical college system in the United States. As Georgians have lost opportunities and their jobs, there is a great resource that is practically in every community in the state.

Offering upskill through funding from the federal government, there are opportunities for people to participate in the jobs coming into the state,” said Pat Wilson, commissioner of Georgia Department of Economic Development.

According to the National Skills Coalition, 55% of Georgia’s jobs are considered middle skill, or jobs that require more than a high-school diploma, but less than a four-year degree, and it is projected that demand for middle skills jobs will remain strong through 2024. However, only 43% of Georgians are trained to this level. Closing this gap is a top priority for the Technical College System of Georgia.

Last year, more than 32,000 adults took classes through the technical college system and earned more than 6,000 high-school equivalency certificates, plus nearly 700 skills-based credentials, the Gwinnett Daily Post reported.

The system is in constant communication with businesses and industry leaders across Georgia,

Tavarez Holston President– Georgia Piedmont Technical College

Throughout this pandemic, we have had millions of people being laid off. Our purpose is workforce training and we are trying to make this as accessible as possible for people who still have bills to pay. We dropped our application fee and we became much more flexible in terms of entry requirements. Instead of requiring students to come to the college and take an admission exam in the middle of a pandemic, we can look at high-school test scores and use these as a gauge of suitability. From that, we have seen a large increase in interest and in applications but there is still a great deal of uncertainty around the structure of education going forward.

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Market voices: Business schools

Maryam Alavi

Dean Scheller College of Business at Georgia Tech

There are a lot of great business schools in Atlanta and elsewhere, and I think that to really remain competitive and provide value, you need to be differentiated.

In our case, one differentiator is how we develop our students intellectually, meaning the skills, capabilities, and knowledge base that we instill in our students.

Scheller College sits at the intersection of business and technology. We’ve held this position for a while. It means that our graduates are tech-savvy and business smart.

We continue to hear from business that our students have a quicker rampup time to productivity and our students enthusiastically take on the world. I firmly believe our students graduate career-ready because of our continued focus on high-quality faculty who either worked or are working in business. The longstanding track record our faculty have in consulting keeps them current and course materials relevant. Our faculty are researchers and practitioners – a powerful combination to bring to the classroom. People are paying attention to Kennesaw State University more than ever before. 2021 looks bright. Our constant growth in both enrollment and reputation give us limitless potential.

Richard Philips

Dean J. Mack Robinson College of Business

Dean Michael J. Coles College of Business-Kennesaw State University

In the Financial Times ranking of the Top 100 Executive MBA programs, we are 83rd worldwide, 18th in the United States, fourth in the Southeast, and first among public universities in the Southeast. The Financial Times uses different elements to rank programs. They heavily weight the salary three years after graduation. Our students have done very well. Other metrics that are factored into that ranking include gender diversity of students and faculty, international diversity of students and faculty, and the proportion of the curriculum dedicated to corporate social responsibility, ethics, social and environmental issues.

Last year, we received the largest donation in our school history – a $30-million gift from the Goizueta Foundation. One of the focuses of this gift is establishing the Roberto C. Goizueta Institute for Business and Society that will elevate the way Goizueta and our students use business as a force for economic and social equity. The gift will also be used to create the Roberto C. Goizueta Innovation Center, which will be home to our extensive entrepreneurship and innovation offerings. The third focus of the gift is the advancement of our use of technology for teaching innovation.

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Robin Cheramie

Karen Sedatole

Interim Dean Emory University’s Goizueta Business School

EDUCATION OVERVIEW

Greg Dozier Commissioner – Technical College System of Georgia

TCSG’s mission is to build a well-educated, globally competitive workforce through technical education, adult education and customized training for Georgia’s businesses and industries. We provide Georgians with the education and training that will lead directly to a career that is in-demand. Our colleges work hand in glove with local industry to understand their workforce needs and offer programs that meet those needs. We have a 99% job placement rate and an 86% placement rate for infield graduates, which illustrates the tremendous partnership we have with business and industry.

and has close partnerships with companies across different sectors. Via its Georgia Quick Start program, ranked No.1 workforce development program in the nation, the system provides free workforce training for companies considering relocating to Georgia or expanding in Georgia. And market-ready talent is among the top necessities for companies wishing to relocate or expand in the Peach State.

For example, the Georgia Piedmont Technical College, a part of the Technical College System of Georgia, serves counties such as DeKalb, Newton and Rockdale. “Across the counties we serve, companies come to us with their recruitment needs and it is our role as a technical college to ensure we have programs that support those jobs,” school President Tavarez Holston told Focus: Atlanta.

Although the impact of the coronavirus has squeezed the education sector and the economy at large, Holston says the college remains keen on equipping the local workforce with in-demand skills and training. “As we look at the current environment, there are signs of life in the economy, and we want to make sure we remain relevant in producing a workforce that meets the needs of our counties.

Even though COVID-19 has changed the way we do business, we are still getting calls from our industry partners that require training delivered virtually,” he said.

While the ramifications of the coronavirus are likely to shape the future of business and education, the region’s educational institutions recognize the need to meet the workforce demands of employers and industries, and continue to take steps to ensure they are part of the solution. “We’ve established

The University System of Georgia voted to hold tuition fees steady for 2020-2021 relationships with a few local staffing companies as well as companies in the surrounding areas. When job openings are posted, our student body has the ability to apply for those jobs,” said Tonya Moore, dean of Strayer University - Chamblee Campus, whose program includes lecture participants from the business world. “We utilize industry experts to lead classes, which has been received very well by our students. We have the Jack Welch Management Institute, which involves various C-level executives.

We also offer a digital entrepreneurship MBA program that features Jon Steinberg of Cheddar Network. The program uses Facebook as a Learning Management System to deliver curriculum material and class discussions. We also have employer partnerships with hundreds of companies across the country to better service their employee degree needs in-house.” www.capitalanalyticsassociates.com

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Anne Skleder President Brenau University

How do recent rankings reflect Brenau University’s strengths?

We are highly proud of our performance but primarily, our economic mobility standing. We are one of the institutions that helps move students upward in their socioeconomic scale. Diversity is a close second. Within our institution, both in our Women’s College and our graduate programs, 47% of our students identify as non-white. We are pleased with this figure as we strive for inclusivity, diversity, and most of all, access. We also are pleased with our consistent strong rankings in both U.S. News & World Report and the Princeton Review. We have also scored highly on a regular basis over the last 10 years with the number of veterans who make up our student population.

Which among your programs is showcasing the strongest demand?

At the undergraduate level, we have a strong performing arts program. We have an established relationship with the University of North Georgia (UNG) in the Gainesville Theatre Alliance. Students come to us for both acting and musical theater on one side and to UNG for technical theater on the other. Second would be dance and the arts — costume design, fashion design, to name a few of the applied arts. Nursing also demonstrates a strong demand. We have a beautiful combination of the performing and fine arts with health sciences.

At the graduate level, our Ivester College of Health Sciences will launch a physician assistant program in January 2021, which filled up immediately and now has a waitlist in three figures. We have just elevated our psychology program to the Lynn J. Darby School of Psychology and Adolescent Counseling because what we are seeing coming out of the CDC and other places is an incredible impact from this pandemic on young people: suicide rates, drug addiction rates, to name a few issues. We also offer the only Executive Women’s MBA in the country. This program creates a learning environment that women told us they wanted.

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There are 1,800 distinct programs of study at the associate’s, bachelor’s, master’s, doctorate and professional levels.

Affordability One key hurdle for all educational institutions is affordability, which has been enhanced by the implications of a pandemic-related budget crunch on current and future students. In April, the Board of Regents of the University System of Georgia delivered some good news for students when it voted to approve a recommendation of no tuition increase for the 20202021 academic year “One of the University System of Georgia’s top priorities is affordability, and that has never been more important than now for our students and their families,” University System of Georgia Chancellor Steve Wrigley said at the time. “We are all trying to navigate an extraordinary time. It is more critical than ever for our institutions to provide a quality education while maintaining the affordability and accessibility that helps more Georgians attain a

EDUCATION OVERVIEW

college degree and find success in the workforce.�

According to the organization, tuition increases among its institutions have been limited to 0.9% annually for the past five years. Even in the midst of the pandemic, 2020 marks the third time in five years with no tuition increase across the University System of Georgia.

Still, college tuition and fees remain above the national average. Moving forward, the pandemic could potentially create further budget implications for educational institutions as the region moves beyond the health crisis and its accompanying recession. During recessions, educational institutions are forced to make tough decisions related to budgets, the inability to fill vacancies, increasing class sizes and furloughing of staff, all of which are likely to impact the student experience especially in lowerresourced colleges throughout the state.

Online or distance learning could be part of the affordability solution. The pandemic-driven move to a complete remote instruction setting in the spring and summer semesters may have been the litmus test educational institutions needed to further embrace accessibility and affordability. Years prior to the pandemic, Georgia Tech, a top engineering school, launched its online master’s in computer science in 2014.

The online degree program costs around $7,000 or about one-sixth of the costs of the in-person program.

In fall of 2020, the program saw an enrollment of 2,890 students and has experienced an overall enrollment of 10,799 students in the last five years, making it the largest computer science program in the country. The percentage of enrollments stands at 63.4% U.S citizens

EDUCATION OVERVIEW

The colleges and Universities in Georgia generate well over 1 billion in research spending annually

and residents and 36.6% internationals students with over 122 countries represented, according to Georgia Tech.

Successful online programs such as this do not necessarily cannibalize on-campus revenue streams but rather open it up to a student population in an affordable fashion. Moving forward, affordability and value are poised to drive prospective students’ decision-making. As students slowly return to the classrooms, educational institutions seeking to move past the pandemic will likely focus on delivering highquality, low-cost degree programs both on and off campus.

One example is Life University, which, like its peers across the country, pivoted to online instruction as the pandemic hit. “COVID-19 has moved the higher education sector so far into the future of where we otherwise would have been, just out of sheer necessity,” said school President Rob Scott in an interview with Focus: Atlanta. “The whole learning environment for our students is turning into one of convenience and flexibility for the learner. We are adapting and piloting a tech platform called Life Flex 188 | Focus: Atlanta 2020 | EDUCATION

that we are hoping to fully deploy by Spring 2021. It is based on the High Flex model that has been gaining ground in higher education while still not heavily used. It allows a faculty member to teach a singular class, with students being able to participate either live in the classroom, synchronously from wherever they happen to be or asynchronously through a recorded portion of it, at a time convenient for their learning.”

Looking ahead Atlanta’s robust education system is set to continue being a driving force of innovation and economic diversification. As evidenced by the growing student population many institutions saw during the pandemic, the region will likely continue to draw worldwide interest from students in a post-pandemic world.

The sudden transition to remote instruction, which forced institutions to reinforce their digital infrastructures and reevaluate their online offerings, will likely usher in a new era of opportunities for students and schools.