2009 South Metro Outlook Presentation

The Good, The Bad and The Downright Ugly: A review of Fayette County's current economic climate and the state of the retail, office and

industrial markets.

Matt ForsheePresident/CEO

Fayette County Development Authority

Overview• The Good

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

• The Bad• Announced Job Losses

• The Downright Ugly• One Industry Sector’s nearly complete collapse.

• State of the Retail, Office and Industrial markets

The Good

• Over the last three years, FCDA has announced the creation of 1400 new positions in Fayette county.– Sany America – 600 Jobs over 10 years– NCR – 600 jobs over 3 years– Other New Companies - FieldTurf, Dixie

Aerospace. – Expansions by Existing Companies –

Hella, Aventure Aviation, Rinnai,

The Good

The Good: Population Detail

The Good: Population Detail

The Good• Employed Fayette County Residents at

the highest number ever, hitting 54,000 employed in July 2008

The Good

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

The Bad

• Long standing companies announce plans for layoffs– Panasonic plans to layoff 500 people in

2009– Corporate parents of other local

companies announce plans for system-wide layoffs. Local effects unknown. Cooper Industries, Gardner Denver

The Downright Ugly

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

The Downright Ugly

0%0%15%

4%

9%

12%

2%

1%6%6%

14%

0%

6%

1%

8%

1%

6%8%

Ag/For/Fish/HuntMiningConstructionManufacturingWholesale TradeRetail TradeTrans. & WHInformationFin. & InsuranceRE/ Rental/ LeasingPro. Sci. & Tech.Mangement CompanyAdmin. & Waste Srvs.Ed & TrainingHealthArt, Ent., & Rec.Accom. & FoodOther

The Downright Ugly

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

The Downright Ugly

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

The Downright Ugly

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

Commercial - Retail• ARC’s March 2008 Regional Snapshot

– YR 2000• Metro – 48.4 sf/person• Fayette – 64.4 sf/person

– 2nd after Coweta– 6th in vacancy rate (4.6%)

– YR 2007• USA – 20 sf/person• Metro – 49.2 sf/person• Fayette - 65.4 sf/person

– 2nd after Coweta– 19th in vacancy rate (5.5%)

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

Commercial - Office• ARC’s March 2008 Regional Snapshot

• 2000 – 2007,+823,523 sf (38.3%)• Total of 2,975,284 sf (284 blds)

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

• Average space/building – 10,476 sf– 9th largest average building size– Metro Average – 27,499 sf

• Average vacant space/bld – 1,666 sf– 10th largest average vacant space– Metro Average – 3,864 sf

• Comparisons– 2000 – 2007, Forsyth grew by 153%– Henry has below Fayette in total bld sf at

2.4 MSF, but grew 1,320% between 2000 and 2007.

Industrial Buildings• No major new stand alone

Industrial Construction, mostly small lease spaces

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

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

Thank YouMatt Forshee

President/CEO Fayette County Development Authority

Copies of this presentation available atwww.fayettega.org