Following in the footsteps of New Orleans and Portland, Oregon, Atlanta will be implementing its own streetcar project to alleviate some of the city’s traffic congestion and further revitalize its downtown streetscape.
The City of Atlanta, Atlanta Downtown Improvement District and MARTA have partnered on the Atlanta streetcar project, which is a transit network that will link communities and improve mobility. The $69.2 million project, which will provide 2.6 miles of transit with 12 stops upon completion in late 2013, is designed to connect Centennial Olympic Park to the Martin Luther King Jr. National Historic Site.
“Everywhere streetcars have been built, property values have increased,” said the mayor of Atlanta, Kasim Reed, at the Carter Breakfast, which occurred Thursday, Nov. 8, before a crowd of approximately 200 attendees.
Driven by their desire for convenience and diverse neighborhood amenities, the millennial generation is an obvious target for downtown Atlanta's Streetcar corridor project. According to a report from New Media Trend Watch, millennials (persons born from 1982 to 2002) comprise approximately 25 percent of the U.S. population and are evenly split between males and females.
Atlanta’s 10th annual Downtown Development Day, which took place Wednesday morning, Nov. 7, in the AmericasMart Building 2, further highlighted exactly what defines this generation and why they are the driving factor behind several projects.
Downtown Atlanta is a strong millennial market. Approximately 27 percent of the rental demand downtown comes from 25- to 34-year-olds, because of the variety of amenities that are offered. Residents and workers are able to obtain the convenience that drives the decision of millennials since downtown provides office, residential and retail.
The panel discussion, titled “Reshaping Atlanta Streetcar Neighborhoods for the Millennials,” described the generation as having high expectations and striving to create a proper work/life balance.
“These are young people interested in more social interaction than they would get in a suburban environment,” said panelist Aaron Goldman, principal with Perennial Properties. Perennial, an Atlanta-based mixed-use developer, recently completed the Pencil Factory Flats & Shops downtown on Decatur Street and Apex West Midtown in midtown on Huff Road.
The major submarkets the speakers cited were Fairle/Poplar, Sweet Auburn, Centennial Olympic Park, Georgia State University and the Peachtree Corridor. These markets also have more favorable asking rental rates, further making it a desirable market for millennials.
Millennials' financial responsibilities are of high importance at this point in their lives. Panelist Mathew Winn, senior managing director and U.S. retail services leader at Cushman & Wakefield, said this group is not spending excessively because it is looking to connect through experiences. By spending a majority of their income on renting apartments within mixed-use developments or on rental units that provide a wealth of other amenities, millennials are exposed to a multitude of experiences.
This generation prefers to live at the hub of their communities in close proximity to where they work and play, in addition to other entertainment and retail options, which the streetcar project will allow them to do. The program is designed to connect the streets of downtown and therefore provide its residents and workers with a greater opportunity to connect via experiences to multiple hubs.
Additionally, the Streetcar project will address a longstanding issue downtown by providing transportation and the ability to traverse downtown Atlanta's neighborhoods safely.
“Atlanta's never going to have the density of Chicago or New York where you feel comfortable walking five or six blocks,” said panelist Tyler Edgerton, partner with Raulet Property, a boutique commercial real estate brokerage firm.
“We're looking at density or death,” said Winn.
The other panelists agreed with Winn that developers, retailers and office tenants must collaborate to attract millennials to the downtown submarket because this demanding generation wants to live, work and play all within one area. By collaborating, real estate companies are able to bring a mix of ideas and proven methods to the table that enhance the overall experience.
“Retail is key,” said Michelle Morgan, founder of HUB Atlanta, which offers work space for entrepreneurs and freelance professionals. “Something has to be done to lure retailers away from these giant malls to the streetscape.”
If retailers begin to open locations along downtown's streetscape, the panelists predict that more millennials will migrate to the submarket in an effort to stay connected. The streetcars will also allow millennials to develop a greater work/life balance through minimal commute times.
Winn said, “If you build it, they will come. You just have to get it started.”
In order to get the ball rolling, the panelists agreed that developers must work together in order to deliver high-end projects that provide it all.
“It has to encompass more than just living — [communities] older people would consider flakey or hokey,” advised Tyler Edgerton, a principal with Raulet Property, a boutique commercial real estate brokerage firm.
In order for the streetcar project to fully capitalize on its potential and be successful in Atlanta, commercial real estate companies must work together to deliver Class A product that not only attracts millennials, but also revitalizes the streetscape to make downtown a highly targeted submarket.
— Brittany Biddy