Message from the Executive Director: Forward Momentum

As the nation continues to keep a hopeful eye on the economic recovery, the Cumberland CID continues to directly invest in the area by advancing several critical projects.

In September, the CID Board of Directors approved funding the construction of streetscapes and landscaping improvements, bringing the CID’s total commitment to $15 million of a $35 million effort. Approximately six linear miles will go under construction late this year and early next. Read more about the progress of the CID’s landscape enhancement program here.

The CID continues to work with its federal, state and county partners to identify funding for other worthy projects. A recent trip to Washington D.C. reconfirmed our congressional delegation’s support, particularly for widening a portion of Cobb Parkway, including the bridge spanning Cobb and Fulton Counties. Conversations continue with Cobb County on vital projects appropriate for the next SPLOST offering.

This issue also features a guest article on promising signs of economic recovery in the Cumberland Galleria office market from Colliers Spectrum Cauble SVP and Principal, Russ Jobson.

Thank you, as always, for your support and commitment to the Cumberland CID’s efforts to enhance Cumberland Galleria.

Best,

Malaika Rivers
Executive Director, Cumberland CID

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Cumberland Galleria Market Update

This issue features a market perspective from Colliers Spectrum Cauble SVP and Principal, Russ Jobson.

The effects of the national recession have certainly impacted the office market in Cumberland Galleria in 2009, but recently, there have been promising signs of a recovery in this mature office submarket.

First, let’s start with the state of the market.

• During the past three quarters, net demand for office space has been negative in Cumberland Galleria, though not as dramatically negative as some other area submarkets.
• Within the last year, Class A office rents overall have felt downward pressure — anywhere from 5 percent to 15 percent, depending on the strength of the building ownership and vacancy rates.
• In most cases, landlords are increasing their leasing concessions to gain and retain their quality office tenants.
• Though Cumberland Galleria boasts some of the most sought-after commercial sites in Atlanta, due to continued capital restriction, lack of available equity sources and flat rental rate growth, we are not likely to see a new Class A office building in this submarket for a few years.

So, what’s the good news?

• Cumberland Galleria has secured more than 350,000 square feet of new and renewed leases this year, while one other large lease is due to be signed by year-end.
• Area landlords have all seen an increase in the number of “tenant tours” of office space.
• Now that the economy has somewhat stabilized, some tenants have signed longer term leases, presumably feeling more confident about the continued economic recovery.
• Boding well for the survival of the Cumberland Galleria office market is the fact that many of the project owners have been able to maintain their rental rates and continue to provide quality tenant services, even with less than desirable vacancy.

Overall, Cumberland Galleria has faced some economic challenges (like other Atlanta submarkets). But the area has been successful and is poised for continued success as we emerge from this recession.

Please feel free to contact me at russ.jobson@colliers.com.

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Project Updates: Streetscaping and Area Signage

The Cumberland CID is hard at work beautifying local area corridors as part of its landscape enhancement program. Planting is complete along Cumberland Boulevard at Akers Mill Road, and similar landscaping will be installed throughout this fall at the following locations:

• Paces Ferry Road and I-285 Interchange
• Cobb Parkway and I-285
• Cumberland Boulevard and I-75 Interchange
• Windy Hill and I-75 Interchange
• Along the Powers Ferry Corridor

Pictured here are before and after photos along Cumberland Boulevard.

You have probably also noticed signs like these signifying the Cumberland CID’s investments in several medians in the area.

And be on the lookout for gateway signs throughout the community designating the Cumberland Galleria area, which will be installed this winter and in spring 2010.

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Commuter Club Hosts Vanpool Appreciation Event Nov. 5

If you are a driver of a Commuter Club vanpool or are looking to join a van for your commute, please RSVP and mark your calendar for the annual vanpool appreciation event on Thursday, November 5 from 11:30 a.m. – 1 p.m. Commuter Club will host lunch at the Atlanta Marriott Northwest and provide information about its vanpool program to attendees.

If your employees who vanpool, we invite you to come to our event and learn more about the Commuter Club Vanpool Program. Click here for more information. RSVPs are required to dstanzel@commuterclub.com.

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