Key Take Aways from Charlotte December Meeting!
Rick Lackey
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Rick Lackey
Multi generational commercial real estate entrepreneur. I network my relationships and experience to make CRE deals happen faster. I enjoy "paying it forward".
- According to a Cushman & Wakefield report in Globe Street, sublease office space is up 53% in the first three quarters of 2020.
- Bohler notes continued work in the single and multi-family residential and industrial spaces. Jurisdictions remain relatively slow for review and approvals.
- Terracon advises that work is ‘erratic’ – with some sectors being white hot and others quite cold.
- In the Medical space, the bigger players are growing thru acquisitions of regional hospitals.
- Lots of geotechnical work underway related to infrastructure and highways and substantial work near rail lines.
- The general business climate seems positive but we are likely 6 months out from any ‘normalcy’ – 2021 overall should be a good year forecasters say.
- 2021 may be a trying year on the single family home front as many have tapped into a sizable portion of their lot development that was earmarked for 2021 – this will put a constraint on new home availability.
- ULI reports that the average worker is saving 227 hours (or 28, 8-hour work days) a year by not commuting.
- With the move of people out of cities to more suburban areas, the question will become how local governments generate revenue to support infrastructure.
- Land remains quite hot. Cousins closed on Beacon property at the railyard for $200M or $612k/sf.
- On the retail front, sit-down restaurants were hurting, but now with another clamp down, there will likely be more permanent closures. Many retailers were able to successfully pivot to more of an online presence / delivery. QSR remains strong as digital platforms, drive thrus are helping weather the storm. Medical Service Retail, like dental, urgent care, massage, etc. are taking advantage of vacant retail spaces for new presence. ‘Amazon Fresh’ is a new concept that is in the works – not yet in Charlotte, but it will be – they are +/-40k sf stores, similar to Walmart Market.
- EDPNC reports that despite the challenges this year, they will hit 80-90% of their 2020 target. They are seeing substantially more manufacturing projects than in the past and seeing a lot less office assignments. They also have a large marketing campaign underway, not just to lure businesses but also individuals who are not part of the ‘work from anywhere’ force.
- Edifice reports that December will be one of their busiest months ever from a proposal standpoint. They are seeing a small burst of activity in the office sector, primarily with adaptive reuse.
- The cost of lumber is continuing to go up and is causing contractors to look at other alternative materials; there are substantial delays with kitchen appliances for new builds.