by David Chapman
Staff Writer
For members of the Commercial Builders Council, the first thing Cornerstone Executive Director Jerry Mallot told them Thursday might not have been the most pleasant news — but at least it was honest.
“As they say in the business, ‘I’ve got some good news and I’ve got some bad news,’” began Mallot, the keynote speaker at the Council’s luncheon. “It’s a little more bad news than good news, but it’s just a matter of time.”
Mallot, the point man for the Jacksonville Regional Chamber of Commerce’s economic development arm, addressed the Northeast Florida Builders Association Council on the process of attracting businesses to the region along with what recent past and future developments mean to the industry.
The overall poor economy has led to an abundance of existing commercial space for relocating businesses to choose from, which isn’t ideal for commercial builders but is an advantage for remodelers, said Mallot.
In terms of the scale of the economy, he believes the commercial real estate industry is just reaching its rock bottom and — if his conversations with numerous outside business officials are any indication — better things are ahead beginning later this year.
Mallot’s message wasn’t all negative, though, as he described Cornerstone’s successes such as bringing headquarters of RailAmerica, Pilot Pen and Main Street America Group along with openings of Deutsche Bank and Volkswagen offices and facilities, respectively. Additionally, Mallot noted a potential announcement regarding a new Volkswagen facility — one that would be built — that would be larger than the automaker’s local existing facilities combined.
While the economic slowdown has affected industries, Mallot said he saw most rebounding with areas such as distribution and logistics, aviation and aerospace and — once the credit markets rebound — life sciences leading the way for Northeast Florida.
Of the 47 projects Cornerstone is currently working on, more than 30 percent are office and commercial-related, from which most new jobs are generated.
There are other good things on the business horizon, too.
Saft, a company that makes advanced batteries, is looking to come to Jacksonville and bring with it 800 jobs, but is competing for a federal grant to subsidize the cost of building a plant. Saft officials believe they’ll receive the grant, said Mallot, yet the project will also need assistance from the City when and if the situation arises.
“We are hoping they see the importance and need (of such a project coming to Jacksonville),” said Mallot.
While negative sounding, the Federal Deposit Insurance Corporation’s announcement of opening a satellite office for up to five years will bring many high paying jobs and add to the area’s overall quality of life, added Mallot. The office will liquidate the assets of failed banks — not the most popular topics, said Mallot — and be a benefit.
Mallot sees his participation in speaking to such organizations as a learning opportunity not only to the organization, but for himself, also.
“I hope it helps everyone learn a little about what they might not see everyday when it comes to economic development,” said Mallot. “It’s a two-way street, too, as I learn something every time from comments and concerns of an audience.”
It was definitely a positive experience for members of the Commercial Builders Council, said one attendee.
“It’s definitely informative,” said Mark Carlson of Carlson Capital Advisors. “Learning about what’s going on around us, if it involves commercial aspects, is extremely important and appropriate, especially now.”
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