As the largest city in an isolated, sparsely populated state, Anchorage residents account for almost half of the total personal income in Alaska, according to the Anchorage Economic Development Corp. This is a young city, where the median age is just about 33, and payrolls continue to grow. Last year, in the depths of the recession, Anchorage officials proudly marked their city’s 20th consecutive year of job growth.

For one thing, the city’s expansive energy industry helped insulate it from much of the recession. Also, the housing market has not experienced the nation’s highs and lows. “I think that we’ve suffered a little bit, just like everyone else has, just not to the same degree,” says Pauline Hofseth, a real estate licensee in Anchorage. Today, moderately priced homes seem to be “flying off the market,” Hofseth says.

While the city’s crucial tourism and shipping industries have been bruised by the recession, jobs have been added in education and health services, and in government, which represents 20 percent of the city’s jobs. Retailers also continue to move into Anchorage: Target, Kohl’s, Lowe’s, Best Buy, and the Sports Authority have opened new stores.

Click here to read the full story.

The Anchorage Business Confidence Index for 2009 is 51.8

The Anchorage Business Confidence Index for 2009 is 51.8, indicating that the business community anticipates nominal growth when compared to last year. (An index between 51 and 100 indicates a positive outlook, while an index below 50 shows a negative outlook.)

Respondents forecast small increases in several aspects of their own business or organizational activity.

Opinions about gross sales reveal a confidence index of 56.4. The confidence index for net profits and employment is 54.6 and 53.8 respectively. Survey participants expect a very minor decrease in capital expenditures in 2009 (confidence index is 49.3).

Energy prices are perceived as the most significant barrier to future business growth. Nearly half of all respondents also report that high energy prices led to increased prices for services and products they offered.

And while nearly 60 percent of respondents expect the Anchorage economy to fare worse in 2009 compared to 2008; most of these responses were categorized as “slightly” worse (47 percent). Expectations are brighter for Anchorage than they are for the state as a whole (64 percent expect economic declines).

Respondents believe that the most important project to the Anchorage economy is the Alaska gas pipeline, followed by a natural gas pipeline from the North Slope to Cook Inlet and workforce development.

Click here to read the complete study.

Anchorage, Alaska’s largest city, has a strong economy that feeds off the state’s rich oil and natural gas supplies, U.S. military presence, and tourism.

Share of jobs in strong industries: 39.3%
Number of workers: 138,768
Metro area unemployment rate: 5.6%
Agriculture jobs: 3.21%
Professional, Scientific, and Technical jobs (legal, accounting etc.): 6.79%
Education jobs: 8.26%
Health-care jobs: 11.36%
Public Administration (Government) jobs: 9.71%

The Anchorage Economic Development Corporation (AEDC) recently launched a new online mapping tool to attract and expand businesses and jobs in Southcentral Alaska. The website – AnchorageProspector.com – provides access to customized market research and commercial property listings in Anchorage, Matanuska-Susitna and Kenai Peninsula boroughs. The online program is the first of its kind in Alaska. A goal of the program is to simplify the process of working with regional government when preparing for relocation and expansion decisions.

“Now businesses will no longer have to leaf through reams of Census Bureau reports for demographic information or contact multiple city departments for basic data and documents,” according to Bill Popp, president & CEO of AEDC.

The free site gathers economic, planning, infrastructure, geographic and demographic information often sought by businesses looking to relocate or expand into a ‘one-stop-shop’ business portal on the Web. It allows users to view, create and print maps; find available commercial or business property; and develop custom demographic radius reports.

Commercial realtors are invited to post their properties on the site and Popp will be speaking at community meetings throughout Southcentral in coming months to introduce the new resource and its applications.

Check it out here.

New office buildings and businesses have been sprouting up all over town, leading one to wonder why commercial development hasn’t been hit as hard as the residential market.

At a forum downtown Monday, business leaders met to discuss the real estate business boom. Chris Stephens, a commercial real estate broker, was one of the featured speakers.

When it comes to the difference between homes and commercial real estate, experts say don’t get confused, Stephens said.

“I think commercial real estate and residential real estate are two different markets,” he said. “While they both have to do with real estate they are really, really different.”

And as demand remains strong, Stephens said the old adage rings true: The three most important aspects of real estate are location, location, location.

“Anchorage has a lot to offer, demographics are outstanding, we have a young highly educated population,” he said. “All those factors come together and make Anchorage very attractive for retail development and as you’ve seen there’s been a tremendous amount of retail development in Anchorage in the last 10-15 years.”

One example of that development is Craig Smith’s car wash, which opened last November.

“We’re the first ones developing this lot,” said Smith, who sold an adjacent lot to Walgreen’s drug stores. “We’re real happy about the development; we’re going to work together to bring in business.”

Smith can look forward to future development, Stephens said.

“We’re going to see a real increase in activity,” he said. “Commercial real estate is a lagging indicator. It follows what the economy does, (and) we’ve had 19 years of growth. I don’t know where else in the country that’s had that. That’s really the driving factor.”

Anchorage is unique in its commercial real estate market. Lower 48 states aren’t fairing nearly as well. It’s clearly a hot topic around town. Monday’s forum downtown sold out in less than 10 minutes.

You might say that Anchorage’s favorite place to shop, dine, work and play is getting a makeover, complete with some large new additions and ways to move around. From the Anchorage museum expansion to the new convention center to E Street to Delaney Park Strip to renovation at Ship Creek Point, the face of downtown is changing.

This makeover is all about making a great place even better. It’s all about making Downtown the destination for residents and visitors alike. It’s all about “Destination Downtown.”

“Destination Downtown” is the name being used for the myriad projects underway or soon to be underway in Downtown Anchorage. It is important that all of the projects in Downtown are part of a greater whole – a contemporary northern latitude city with amenities that facilitate a lively, vibrant community through out the entire year.

Click here to visit the Destination Downtown website.

Development Links with Parking

ACDA supports public-private partnerships that are financially sound and align with the mission of ACDA linking new parking development to private development projects.

Innovative Parking Solutions

ACDA supports economic growth for Downtown Anchorage and wants to be a part of creative parking solutions.

Future Development

Continuing development in downtown Anchorage will create a higher demand for parking.

Future Parking

To continue the positive growth and economic vitality of Downtown Anchorage, access to parking will need to be a part of development or construction projects.

Downtown Zoning District

The Municipal zoning district for the downtown core has no requirement for developers to add or create parking as part of their downtown development or construction projects.

Private Public Partnerships

ACDA can assist in achieving economically sound projects for proposed private development by lowering parking construction costs and/or creating a potential positive revenue source for the project.

Contact ACDA

Ron Pollock, ACDA Executive Director
rpollock@acda-ap.com
Tel. (907) 297-4431