Commerce Center Economic Impact Analysis
The Bureau of Business Research and Economic Development (BBRED) recently completed an economic impact analysis for the Greater Atlanta Industrial Economic Development Alliance (GAIEDA) to analyze the potential impact of a proposed commerce center building in the Metro Atlanta region. A commerce center is also referred to as a spec building, and is often used for an industrial purpose. Communities have found that these buildings are major assets to include in the overall economic development arsenal. When a company needs to begin operating quickly, communities with new buildings, ready to be occupied, are better positioned to attract that firm.
The study included multiple sizes and future uses for the building to allow planners the ability to attract a variety of corporate customers. The economic impact was based upon the logistics industry as the most likely occupant. With access to two of the largest ports on the East Coast, the logistics industry represents a great opportunity for economic growth in Georgia.
Based upon the assessment, constructing the proposed 500,000 square foot facility would generate more than $39.90 million in total output and add, or support, more than 250 jobs in Metro Atlanta. When the building is fully occupied, the annual economic impact will grow to $236.3 million and support 1,265 jobs after ten years of operating as a distribution center.
If the facility were increased to 1,000,000 square feet, the construction impact would be $79.80 million in total output and support 500 jobs in Atlanta. When the building is fully occupied in this case, the annual economic impact will grow to $325.45 million in total output and support 1,265 jobs after ten years of operating as a distribution center.
Using this study, GAIEDA aims to build at least one commerce center in the Metro Atlanta area. This development would have a positive economic impact on the host community.
Posted in Research
Tags: BBRED, economic impact study, GAIEDA, research