2 min read December 2022 — Invest: was joined by Michael Russell, CEO of H.J. Russell, to discuss the variety of innovative real estate projects happening in Atlanta, from new workforce housing to remediation projects that are transforming formerly neglected areas. “We have a strong backlog in construction and program management, so having the people to make sure we’re executing at a high level is the number one priority,” he said.
What have been your key takeaways from the past year?
On a strategic level, we’ve moved out of the property management business, having sold a portfolio of 13 apartments. With that strategic change, we’ve shifted our focus to construction, program management and urban real estate redevelopment. We always ask how we can make a better Atlanta and that starts with affordable and workforce housing. This was showcased with the completion of significant projects including a transit oriented development project that was in partnership with MARTA; a 300-unit mixed income, $75 million development that includes 100 units of workforce housing.
What makes Atlanta a great market to do business?
Atlanta is a dynamic market with innovative industries and a robust, diverse workforce. It’s an exceptional strength of the city. Even as the cost of living has escalated, Atlanta remains a very desirable and affordable place to live, especially compared to almost any major metro area in the country. It’s a business climate that is very open to economic growth and different ideas and people coming in and being a part of the city. And whether it’s downtown or in the suburbs, we are growing all over. There is no geographical obstacle to our growth and we’re seeing it multiply. There’s more of a focus on density than a decade ago, so we’re figuring out ways to bring more people to live here, minimize their commute, and have great mixed-used workforce residential spaces to make it happen.
Where have you seen the greatest shifts in demand?
We’re into the data center market now which is a big new demand in the southeast region. In terms of core mission, there is a greater appetite for diversity-owned businesses and that has been a significant differentiator for us, and we have the scale and reputation to take advantage of these opportunities. Infrastructure is also a market that is very busy and will continue into the foreseeable future .
In terms of specific projects, I’m excited about Centennial Yards. It’s the old gulch site across from State Farm Arena downtown and is in early development phases. Projects like that are all about urban redevelopment, using real estate in a more effective way and creating a densified development that has various elements of project type and connection between communities with physical and symbolic structures. Our focus is more on the urban core than suburban, focusing more on mixed use development.
What are the biggest challenges facing the construction industry right now?
It continues to be a talent war in construction. Another challenge is managing expectations of customers as far as timeframe and budget of projects. There’s been a lot of cost escalation, so we have to prepare clients for that and manage it as effectively as possible. And of course it gets complex with city permitting and zoning, so we just have to continue using our resources to be creative and get the job done even if the workforce is stretched.
The whole dynamic of affordability needs to be addressed with all this rapid growth, how gentrification is being managed and if it will require some level of legislation down the road.
What is your outlook over the next three to five years?
I’m still bullish. It all starts with growth, for people and companies. Atlanta and Dallas will continue to be an attractive place for companies to do business and open offices. It bodes well for companies already here to create spaces for that incoming workforce and achieve their business goals. We’re in as strong a space as any metro in the nation.
We have a strong backlog in construction and program management so having the people to make sure we’re executing at a high level is the number one priority. We want to make sure we’re taking care of our people too. You want to treat people in a fair and equitable way and provide the opportunity to grow and thrive. We also have to continue paying attention to what is happening in the economy. We’re going through a level of retraction with the rise in interest rates, so we have to monitor how that will affect our business and maintain our ability to be nimble. We have to keep our heads up and be able to pivot when things are changing.
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