Can Atlanta鈥檚 development boom proceed as coronavirus shuts city down?
(Icon Buckhead, the district鈥檚 tallest new high-rise since 2008鈥檚 Sovereign condos, as seen a year ago.)
David Cochran, Paces Properties鈥檚 president and CEO, sees this workweek as what could be the dawn of 鈥渙ur new daily lives.鈥�
Best known for developing Krog Street Market, Cochran鈥檚 company is also playing a significant role in the redevelopment of Memorial Drive, moving forward with construction and tenant signings at Atlanta Dairies and Larkin on Memorial, among other ventures. In the face of a global pandemic鈥攁 foe to Atlanta鈥檚 explosive growth of nearly a decade鈥擟ochran is assessing all developments while trying stay empathetic to the emotional impact today鈥檚 new realities are having on everyone.
鈥淚n times of uncertainty and fear, we can often lose touch on a human scale,鈥� Cochran wrote in an email to Curbed Atlanta. 鈥淲e believe in our [tenant] relationships, as these are the foundation of our business, because they were built to withstand times as tough as these.鈥�
As job markets have flourished after the Great Recession, the metro鈥檚 population has , packing on more than 70,000 people annually in recent years and boosting the need for housing.
In the City of Atlanta, those years have seen more construction than any other point in the city鈥檚 history, government leaders . Thousands of new houses and townhomes have been built, alongside enough commercial space to fill Mercedes-Benz Stadium more than 25 times and fresh forests of ITP towers, contributing to more than 30,000 new apartments.
But could something microscopic derail it all?
The answer, as with most things COVID-19 related, is that it鈥檚 too early to definitely say. But a few players in Atlanta鈥檚 homebuilding, high-rise development, and city planning realms lent perspectives this week on what they鈥檙e dealing with now, and how they might move forward.
鈥淲e recognize the importance of permitting and inspections to the whole community, but the most critical responsibility we have right now is to do all we can to limit the spread of COVID-19,鈥� said Tim Keane, the city鈥檚 planning commissioner. 鈥淭he safety of city staff and the community is foremost.鈥�
Permitting and inspections continue in Atlanta, but with remote work becoming more prevalent and person-to-person contact restricted, some additional delays in response time should be expected, Keane said.
Plans submitted online should be processed as usual, city officials have said.
Mike Dunham, CEO of the Associated General Contractors of Georgia, said he鈥檚 heard from only one contractor who鈥檚 been forced to shut down a job site due to the virus鈥攁nd that was because of its proximity to a school.
鈥淣ow, if that school system decides to go home, the contractor could be in an accelerated position to move forward with their work,鈥� he said. But as with Atlanta, 鈥渟ome [governments] have said, 鈥楧on鈥檛 even walk into our offices; we鈥檙e not handling paper plans anymore,鈥欌�� he noted.
(Construction crews continue facade work Tuesday on an outbuilding component of development at the MARTA Candler Park-Edgewood Station, a multifaceted conversion of parking lots.)
Asked whether online permitting might be sufficient to operate, Alan Cablik, president of Atlanta homebuilder Cablik Enterprises, which has projects in the works from Kirkwood to Chamblee, said it鈥檚 too early to tell.
鈥淲e鈥檙e certainly trying all avenues,鈥� said Cablik.
Delays in permitting, inspections, and the issuance of certificates of occupancy and other key paperwork 鈥渨ill bring construction to a halt eventually,鈥� Cablik said. 鈥淭hat鈥檚 our biggest concern at the moment.
鈥淵ou can imagine the domino effect on the economy if this occurs,鈥� he continued. 鈥淲e were already down due to the excessive rains over the last three months, and we were all hoping for a strong spring. If this lasts more than a few weeks, it鈥檒l be challenging for all in the industry.鈥�
Jarel Portman, JPX Works founder and developer of Midtown鈥檚 apartment high-rise, pointed to the long gestation period of real estate development鈥攑redevelopment鈥攊n hopes 鈥渢wo great projects鈥� his team is working on come to fruition.
鈥淲e鈥檙e confident that these deals will get realized,鈥� said Portman. 鈥淚f not, and it鈥檚 due to the COVID-19, we have far bigger issues.鈥�
Jim LaVallee, sales and marketing director, said city officials informed his team Monday that two of four buildings have been approved for a project that鈥檚 still under review鈥攂ut that the city was shutting down for two weeks.
鈥淭hus, we鈥檙e stuck on those projects, as it seems unlikely the building department will make much progress from any remote working initiative,鈥� said LaVallee.
All developers relayed news of either shutting offices this week or ensuring that employees work farther apart.
As Dunham pointed out, no two construction sites are the same, and some projects are more conducive to social distancing than others.
鈥淚f you鈥檙e out in the middle of a field pouring a new slab for a warehouse, that kind of work can continue to move forward, as long as your permitting and inspections are done properly,鈥� he said.
鈥淪ome tasks lend themselves to keeping that distance, but it鈥檚 a trade-dependent job,鈥� Dunham added. 鈥淵ou can set tile, and the next tile-setter could be six feet away. But if you鈥檙e both working to put in a door, and you need someone to help you hold it as you send it in, you鈥檙e going to be a lot closer than six feet.鈥�
More uncertainty could be on the horizon regarding construction materials and what could happen if contractors are buying from countries hit hard by the coronavirus outbreak.
Dunham said, during a meeting in Las Vegas last week, he heard of one case in which materials had to be isolated.
鈥淭he company a St. Louis contractor was working with was supplied doors from China,鈥� he said. 鈥淭hose doors had to be left in the container and quarantined for 90 days. I haven鈥檛 gotten anything like that from anybody here.鈥�
Dunham continued: 鈥淚f those kind of scenarios start taking place, you can really see where it would be hard to keep on schedule. I think everyone鈥檚 holding their breath to see.鈥�