Commercial vs. residential growth: business activity up as home sales decline

By Hannah W. Wever

Published: May 15, 2008

With the housing economy in a downturn, there may be far fewer new homes being built, but there are still plenty of construction projects at local businesses that have plans to expand in 2008.
According to the Orange County Department of Community Development, small business owners are expanding their square footage and changing their look in Gordonsville, the Town of Orange and throughout the county.
According to the community development department’s monthly report, plans have been approved for a new call center for PBM Products, additions to the Harley-Davidson dealership and to a number of older buildings in downtown Orange. Further out on the horizon, the department is anticipating a relocation of Virginia Tractor, new hangar and classroom construction at the Orange County Airport, a three-story assisted living facility at Gordon House. And remodels or renovations are in the cards for both Food Lion locations, the former CVS Pharmacy building, Grymes Memorial School, the Montpelier Train Station, the old Rickett’s drugstore, and the former Orange Review building, among others.
Earlier this year, Orange County Building Official, Bill Schwind said it is not unusual to see commercial construction pick up when residential construction starts to slack off.
Orange County Chamber of Commerce Director Barbara Bannar said she’s not surprised to see a high proportion of renovation and remodel work, rather than brand new buildings, among the county’s list of upcoming commercial projects.
“That would not be unusual in a tighter economy,” she said.
Devastating news of widespread layoffs and company shutdowns from major area employers AB&C Group and Timber Truss Housing Systems, she said, doesn’t necessarily indicate a suffering economic climate for businesses across the board.
“We’ve had a couple of big hits, but that doesn’t mean business isn’t good in Orange County,” Bannar said. “Businesses are still growing.”
Owners of small businesses she added, are acting cautiously by making conservative changes to their companies.
Local businessman Ken Dotson said there has been little commercial development until now. The recent increase, he said, comes from greater availability of funding and from folks seeking to survive the unstable economy.
“We haven’t had a lot of commercial activity prior to now,” Dotson explained. But commercial loans are readily available even though residential lending has all but dried up, he added.
Upcoming commercial projects and commercial plans already approved by the Orange County Department of Community Development, Dotson said, can be attributed to “people trying to become more entrepreneurial and larger companies are trying to create volume.”