- Brian Schoeck - Johnston Allison Hord - Discussed?a dramatic shift in a previously-stalled hotel project involving the redevelopment of Brookdale Golf Driving Range. The contract was pulled by the developer in 2020. The developers are now back and eager and confident in moving forward. He sees several hotel components continuing and starting new in the market.
- Paul Hacker - Axis Insurance Services -?Pre-covid, tax liability insurance was increasing which meant hard marketing. Since covid, he has seen insurance market premiums grow with dramatic explosion in size. Brokers are voicing 100% increase in cyber.
- Mark Fletcher - Bohler Engineering - Bohler is heavily involved in three recently announced Statesville projects - all under NDA. Massive growth in advanced manufacturing, primarily due to the EV market. Examples include vehicle batteries, its components, reshoring/onshoring of additional advanced manufacturing that comes with their semi-coductor chips, paint, etc. Mark also notes a spike in land deals down the middle of the country, formed by the Canada Pacific Railroad and Kansas Pacific merger. The corridor allows goods and services from Canada, the Midwest and the West Belt to reach down the 85/65 to the Port of Mobile. Described?huge increases on the retail and QSR sectors, citing Chipotle's recent celebration of its 3,000th North American restaurant opening and 4,000 more to come in areas outside of massive metropolis'. He adds cold storage remains hot with 17 new projects between Nashville and Charlotte; and sees an enormous uptick in life sciences with Eli Lilly's $1 billion industry investment. Overall, new developers, general contractors and specialty groups are seeking to expand presence in Southeast and Charlotte seems to be the hub for which many will plant their flags.
- Joe Kinsey - CoStar Group - States many multi-family development clients are seeking land more rural than Charlotte, i.e. Hickory, Gastonia and Concord. These clients are tracking multi-family rent records from last year closely in order to gauge market and structure costs. Water issues remain depending on location. Joe senses urgency from brokers reaching out on behalf of owners and landlords now that office leasing market is so high. The inventory is available in places all over Charlotte. The industrial sector continues with growth from the Triad area down the 1-85 to Atlanta.
- Chuck McShane - CoStar Group - Notes?significant jump in people working back in the office from 37% in mid-January to about 43% in the first week of February, with South End becoming big competitor and extension in many ways to Uptown. Along with Fulton Market in Chicago, South End more than doubled its office inventory within the last five years, suggesting more popularity in urban pockets near CBD instead of CBD itself. Multi-family growth continuing especially with tertiary markets at an advantage due to lack of extreme rent growth pressure (ex. Greenville). However, slowed rezoning and moratoriums on multi-family projects are increasing, i.e. Cornelius de facto moratoria. Chuck believes this may be the newest challenge for multi-family sector. He finishes with three main points from CoStar's recent webinar impacting the industrial sector: (1) Population growth (2) Good spending - With imports up 20% at Savannah and Charleston ports. Spill over seen in Charlotte and Greenville warehouse markets. (3) Geography - With ports and population growth only four hours away. Very attractive advantage for recruiting short-haul trucking talent.
- Matt Martin - Federal Reserve Bank of Richmond - Suggested?the pivot in monetary policy continues so pay close attention to financial markets. Financial markets are priced in full percentage increase in policy rate, apparent with two-year U.S. Treasury rate significantly higher within the last two months. The ten-year rates are higher but not so much. With inflation, the demand remains very strong and have repeated supply shocks/interruptions (ex. Energy). Multi-family market facing housing cost increases, rent growth and onshoring. Matt expresses lack of certainty in forecast but believes inflation should moderate as year goes on.
- Jane Barkley - Investors Title Company - She suggests the only way Charlotte can continue to grow is to repurpose land along the light rail, and stresses the?importance of having a working relationship with developers, architects, planners, etc. to come up with a way where all can agree to building projects. She notes a 2022 comeback for hotels that was not seen whatsoever in 2020 and 2021, and also a rise in multi-family largely all over the Southeast. Investors Title Company currently has several small solar/energy/alternative energy projects ongoing, including one which converts chicken waste into power. These projects are seen mostly in eastern North Carolina up into Virginia. More development is occurring in rural areas because there is less restrictions on development. Union County is open to industrial projects, whereas Cabarras County is investing in schools. Industrial parks and the unique uses of them are beating out demand for traditional sleek, high-level towers. Jane concludes that every title investor should be careful with potential lawsuits regarding infill production.
- Joe Marek - Johnston Allison Hord - Provides real estate advisory services and notices increases in retail and office projects. Attendance rates are up in entertainment and air travel except in office. The data reflects this with Charlotte (43%) hovering above the national average (33%). Joe suggests people are excited to get back but are lagging to return to the office. Employers are accepting remote workers since they are reluctant to push too far because of labor market. He finds it interesting that companies are finding office locations based off what attracts employees and increases productivity versus?where a company is supposed to be based off of client, i.e. Alston & Bird's move to South End.
- Mike Phifer - Terracon - Seeing much of the same trends mentioned by other members.?Cold storage and industrial sectors are booming. He concludes with the announcement of two new schools in Union County.
- Sean O'Leary - Cherry Bekaert LLP - Works?in tax credit and energy efficient certification projects. He discusses multiple tax incentives, including a recently expired multi-family tax credit of $2,000 per unit and a 30% tax credit for charging stations in the manufacturing, retail and office space sectors. May still apply if amended on tax returns.?Qualifications include testing, which requires an independent certifier, materials, such as roofing and insulation, and the certification once built.
- Russell Hughes - Hughes Realty Advisors - Specializes in wealth preservation. He currently has a $1.25 Million condominium with 3,100 sq. ft. for those interested.
