Economists project positive 2020 economic outlook, but with a few concerns

Overall there was good news for a room full of business leaders gathered at the Marriott Hotel in Downtown Augusta.  The 2020 forecast was hosted by the Terry College of Business at UGA, and presented by Dr. Ben Ayers and Cal Wray.  

Dr. Ayers outlined a number of economic development announcements from across the state, including the Union Agener and Acoustics & Insulation Techniques announcements which themselves will bring 245 jobs to the CSRA.  

Cal Wray, president of the Augusta Economic Development Authority, noted that Augusta has experienced 8.5% population growth since 2010, and unemployment sits at historic lows near 2.9%.  With Fort Gordon continuing to expand, Augusta’s future looks bright, even as nationally and internationally there are warnings signs of an economic slowdown.  
 
For an in-depth review, real the Amanda King’s article in the Augusta Chronicle.  

What are your thoughts?  What are you seeing in the local economy?  

Development Authority negotiates Greenjackets Stadium Lease

 

The former home of the Augusta Greenjackets is getting a second life. Last week Augusta leaders agreed on a deal to bring more entertainment to the Augusta area. A 10-year master lease agreement to bring big acts and events to the Lake Olmstead Stadium will have us seeing the area around Lake Olmstead transformed starting this April. The Augusta Commission voted and approved for the Augusta Development Authority’s “stadium master lease” of the facilities. C4 Live, the subtenant, will be spending hundreds of thousands of dollars to make upgrades to the structure and in addition to Masters Week, we can expect other entertainment events through out the year. This is great news for Augusta and this piece of land getting a second life!

 

What’s a master lease, you may ask?  Here’s Bigger Pocket’s summary, but in short, it’s when an owner leases a space to a tenant who then has the right to sublease to another tenant.  The city of Augusta will lease to the EDA, who in turn will lease to C4 Live.  This is generally good when the landlord trusts the master tenant, but has no relationship to the subtenant–the master tenant is guaranteeing the performance of the lease.  

 

 

https://www.augustachronicle.com/news/20200108/entertainment-company-approved-to-bring-events-to-olmstead-stadium

 

https://www.wrdw.com/content/news/Augusta-leaders-strike-10-year-deal-for-acts-at-Lake-Olmstead-Stadium-for-Masters-Week-566840601.html

Huge Economic Impact of Topgolf and Dave & Busters for Augusta

 

What are the economic implications of Topgolf and Dave & Buster’s coming to Village at Riverwatch?  According to projections from Augusta Economic Development Authority reported by Damon Cline, these two projects are expected to add $15 million to the local tax base, and add 200 jobs and generate $1M in sales tax revenue.  Hats off to the Economic Development Authority, who was able to help attract these developments without tax incentives, and the only expense is a $250K commitment  to construct the public road that will give these sites access.  

 

What do you think will be the impact of these new developments?  Comment below:

 

Additional Resources:

More Details in Great Article by Damon Cline on this Subject

Village @ Riverwatch website & contact for Jordan Trotter Real Estate who handles leasing

Topgolf Website

Dave & Buster’s Website

 

 

September Industrial Market Report

 

Hi!  Today we’re going to be discussing the Industrial Market Update.  There’s been a few notable sales, the Keebler building sold on 7/28 for 7.4M, $16 per foot, and 1431 Marvin Griffin sold on 6/27 for 2.7M (Jay Willingham handled that one).   On the leasing side a few large leases have been done, the largest is at 4301 Evans To Locks, leased over 400K SF to start in Feb, Acoustic Insulation Techniques leased 75,000 SF in Augusta Forward Drive in June of 2019,and 48KSF leased in April at 1595 Columbia Hwy N in Aiken.  Overall demand for flex is strong, and with the Hock family putting some of their portfolio on the market there is availability of good multi-tenant industrial buildings.  See below for more resources, including details on notable sales and leases, and a link to an overall industrial market report.  

 

Recent Notable Industrial Transactions:

Sales:

  • 2.7M, $32.58/SF, 75,200 SF, sold on 6/27/19 — Electrical Equipment Bldg–1431 Marvin Griffing Rd Marvin Griffin Comp
  • 3M, $47/SF, 64,256 SF, Sold on 5/14/19, Advanced building Advanced Autoparts
  • 7.4M, $16/SF, 453,708SF, Sold on 7/28/19, Keebler Facility – Marvin Griffin rd: 1550 Marvin Griffin Comp
  • 650K, 11,800SF, $55/SF, Sold on 8/1/2019, 3715 Benchmark Warehouse  Benchmark

Leases:

 

Additional Resources: 

Industrial Market Report 9.20.19