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Experiential Trends Spark New Retail Success

Posted on December 10, 2018

By Richard Sarkis

Demand for retail properties has taken quite the hit in the wake of rapid e-commerce growth. Companies like Amazon continue to eat up industrial spaces, while brick-and-mortar retailers seem to lose foot traffic by the day.

As that demand has washed away, however, a sturdy foundation has emerged for real estate developers to rebuild and reinvigorate the retail industry as a whole. It has become clear that value remains in the development and reuse of retail spaces across the country.

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Resurgence in Office Leasing Due to Breakout Economic Growth

Posted on November 21, 2018

The NAIOP Research Foundation has published the NAIOP Office Space Demand Forecast for Q4 2018.

Key Takeaways

  • 2018 is expected to register nearly 13.0 million square feet of net absorption per quarter, significantly outpacing 2017 and 2016 when the quarterly figures averaged 9.5 million and 10.4 million square feet, respectively. 
  • The current macroeconomic expansion will most likely continue beyond next summer, which will officially make it the longest sustained economic growth period in U.S. history. 
  • However, the biggest limitation to the expansion of firms that use office space is likely to be the ability to hire qualified employees.

Regarding office space demand, the ultimate determinant of long-term growth will be how the business sector reacts to rising wages and interest rates.

View the forecast.

A Bright Outlook for Capital Markets

Posted on December 7, 2018

By Brielle Scott

Where are capital markets now, and where are we headed next?

At CRE.Converge 2018, experts engaged in a candid conversation about what they’re seeing in CRE investment, and shared their insights, strategies and predictions for the market. Moderator James Cassidy, executive managing director with Newmark Knight Frank, led the discussion.

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Dr. Richard Buttimer Appointed as a NAIOP Research Foundation Distinguished Fellow

Posted on November 20, 2018

The NAIOP Research Foundation has appointed Richard Buttimer, Director of the Childress Klein Center for Real Estate and John Crosland, Sr. Distinguished Professor at UNC Charlotte, as a Distinguished Fellow.  The Research Foundation’s Distinguished Fellows Program engages the nation’s foremost commercial real estate, economic and public policy experts.  During his participation in this esteemed program, Dr Buttimer will participate in NAIOP events and programs, as well as participate in research, presentations and industry task forces.

2018 Battle of the Bands

Posted on November 19, 2018

NAIOP Charlotte hosted its third annual Battle of the Bands on Thursday, November 1st and it was a hit! This commercial real estate fundraising event benefitted The Harvest Center. Three bands battled it out for the title of Best Band at the year’s premier networking event. Great food, drinks and music. 

Many thanks to Grievous Angels, Shelley Ruffin and Soul Revival, and Southside Watt for their outstanding performances! Congratulations to Southside Watt who took home the trophy this year!

We are appreciative of all of our partners in success – planning committee volunteers, sponsors, emcee, jury members and attendees – with your support, NAIOP Charlotte was able to donate $7,500 to The Harvest Center plus an additional $1,000 from raffles. We couldn’t have done it without all of your help.

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Competition for Talent Heats Up

Posted on November 8, 2018

By: Christopher Lee

Commercial real estate companies face big challenges in attracting and retaining exceptional professionals.

THE competition among real estate companies for talent heated up dramatically in 2017.  The “2017 NAIOP/CEL Commercial Real Estate Compensation and Benefits Report” reveals that demand for transformative leaders, next generation stars who could “lead” a division, department or practice over the next 10 to 20 years, has created a bidding war for exceptional talent.

Three Executive Positions Hardest to Fill

The three positions garnering the most attention were focused around leadership, knowledge and talent: Division/Department/Practice leader, Talent Management leader and Director of Research.

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Dueling Tax Proposals as Election Looms

Posted on November 7, 2018

President Donald Trump and Republican lawmakers are promising to pass legislation to deliver further tax relief for the middle class.

“Business will not enter into it, and this will be on top of the tax reduction that the middle class has already gotten, and we’re putting in a resolution probably this week,” Trump told reporters in the Oval Office last week.

Lawmakers are out of session until after Election Day, Nov. 6. Rep. Kevin Brady, chair of the Ways and Means Committee, said, “We will continue to work with the White House and Treasury over the coming weeks to develop an additional 10 percent tax cut focused specifically on middle-class families and workers, to be advanced as Republicans retain the House and Senate.” Brady also hinted Republicans may cut government spending if they retain the House.

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The Warehouse of the Future is Already Here

Posted on November 6, 2018

By Rick Steger

Imagine asking a picking robot in any language you want for a product on a shelf 40 feet above the warehouse floor. Sound too futuristic? Think again — this kind of technology and others are currently making their way into a warehouse near you.

Multilingual voice controls, the Internet of Things (IoT) and emerging technologies are streamlining the modern warehouse amidst a climate of rising costs, according to our new JLL report, Industrial Warehouse of the Future. Additionally, as operators introduce more of these efficient warehouse technologies, many are also incorporating quality-of-life enhancements to counteract labor shortages.

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New Advantage Series Webinar: Legislative and Political Update

Posted on November 5, 2018

Register Online

The Advantage Series is an exclusive member benefit, delivering expert insights into the latest research to help you make informed business decisions.

This webinar will provide members with an analysis of the recent midterm elections and the potential impact on NAIOP’s top public policy and legislative priorities.  Aquiles Suarez, NAIOP’s vice president for government affairs, and Alex Ford, NAIOP director of federal affairs, will discuss issues including tax legislation, the future of infrastructure policy, environmental issues and federal regulatory matters.  Attendees can pose questions regarding federal issues affecting their business and gain insights to prepare them for any future regulatory or legislative challenges.


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NAIOP CRE Sentiment Index: Positive Reading Reaches All-time High

Posted on November 2, 2018

The NAIOP CRE Sentiment Index for September 2018 (a composite of nine survey questions), showed positive changes in seven of the nine questions that underpin the Index. This survey's 0.66 Sentiment Index reading is the highest posted since the full survey commenced in March 2016.

Key takeaways:

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Why We’ll be Voting YES for City Bonds

Posted on October 30, 2018

By Joe Padilla

Charlotte has an Affordable Housing crisis -- it's an undeniable fact. Our crisis is not unlike those faced by dozens of American cities, large and small, where a limited supply of land and rooftops pushes rents and home prices out of reach for many. It's a unfortunate byproduct of our own success, driven by the growing appeal of a city that continues to attract more than 40 new residents a day with our high quality of life, temperate weather and strong job market.

What is also undeniable is that the need for affordable housing exists across much of the income spectrum. The U.S. Department of Housing & Urban Development (HUD) pegs the Charlotte MSA's Area Median Income (AMI) right around $74,000. Using the rule of thumb that no one should spend no more than 30% of their gross income on housing, a family of four earning 80% of AMI ($56,550 a year) could pay a maximum of about $1,400 a month in order to avoid being what the government considers 'cost burdened.' On the lower end of the income spectrum, a family of four at 30% AMI ($35,350) shouldn't exceed about $883 in monthly housing costs.

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Assistance with Green Roof Requirements

Posted October 26, 2018

Green roofs have been slowly catching on in the U.S., but more municipalities are encouraging or requiring their installation to reduce energy costs and absorb stormwater. According to an article from Governing.com, two companies are helping to guide green roof installation. Counterpointe Sustainable Real Estate and Green Roofs for Healthy Cities advise companies and municipalities on the best way to adopt green roofs. Additionally, The Living Architecture Performance Tool is a “rating system and best practice guide” to achieve “measurable and replicable performance benefits” when building green roofs.

San Francisco’s Better Roofs Ordinance and Denver’s recently adopted Green Roof Initiative require newly built buildings to dedicate a portion of their rooftops to vegetation or solar panels. Approximately 25 cities in North America have programs to encourage green roofs.

Treasury Releases Regulatory Proposal for Opportunity Zones

Posted October 25, 2018

Potential investors are getting some clarity about how they may use Opportunity Zones to reduce their capital gains taxes. Last week, the Department of the Treasury released proposed rules for the zones, which were created as part of last year’s tax reform bill. Earlier this year, Treasury had approved opportunity zones – communities that have been identified as economically disadvantaged – in all 50 states, the District of Columbia and five U.S. territories.

“We want all Americans to experience the dynamic opportunities being generated by President Trump’s economic policies. We anticipate that $100 billion in private capital will be dedicated towards creating jobs and economic development in Opportunity Zones,” Treasury Secretary Steven Mnuchin said.

NAIOP supported the inclusion of the Opportunity Zones provisions in last year’s Tax Cuts and Jobs Act. Opportunity Zones allow investors to “defer tax on any prior gains until the earlier of the date on which an investment is sold or exchanged, or December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund,” the IRS explained. “[I]f the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in basis equal to the fair market value of the investment on the date that the investment is sold or exchanged.”

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Welcome New NAIOP Charlotte Members

Posted on October 23, 2018

We are proud to introduce our new association members! The following is a list of individuals who have joined NAIOP Charlotte since June 11, 2018:

  • Jacob Bachman, ColeJenest & Stone
  • Andy Bahr, Elite Touch Cleaning Services, Inc
  • Drew Barnett, Patterson Real Estate Advisory Group
  • Michelle Carlson, BL Companies
  • Jeffrey DelSordo, Gresham Smith & Partners
  • Candice Gaddy, Allegiant Commercial Experts LLC
  • Doug Irmscher, Beacon Partners
  • Ian Patrick, biloba Architecture
  • Rob Phillips, KingGuinn a Division of Bennett & Pless
  • Jonathan Ribskis, Builtech Services, LLC
  • Matthew Rocco, GrandBridge Real Estate Capital, LLC
  • Jason Vaughn, Agracel, Inc.

Huntersville Considering Independent Land Development Agency

The Town of Huntersville is considering establishing its own local development review and permitting agency, bringing in-house a variety of services now provided by Mecklenburg County.

The main services the Town would take over from LUESA include development plan review; zoning, development and erosion control inspections; and bond administration. The Town Manager told the Board this week that five new positions would need to be created to provide these services.

Board members expressed their hope that bringing land development services in house would improve efficiency and reduce plan approval time for developers. REBIC is meeting with staff and Commissioners over the coming weeks to explore the proposal and ensure a handover doesn’t negatively impact development services.

The Board of Commissioners hopes to vote on the proposal in November and begin implementation by July 2019.

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CALL TO ACTION: Get Out & Vote!

Posted on October 16, 2018

REBIC has put together an Election Guide to help you cast your vote for candidates who support the real estate industry.

See which candidates REBIC has endorsed.
View early voting times and locations.

The Mini-Recession Many Missed

Posted on October 16, 2018

A recent New York Times article, The Most Important Least-Noticed Economic Event of the Decade, describes how in 2015 and 2016 a confluence of interconnected forces had a significant impact on the world economy and the presidential election but not many were aware that it ever happened. This slowdown went mostly unnoticed as it primarily affected the energy and agricultural sectors and their equipment suppliers, but it has some important political and economic implications.

It began in 2015 when the Chinese government, believing their economy was about to experience a credit bubble, imposed policies to restrain growth. This action caused a slowdown in the Chinese economy as well as in developing nations that relied on Chinese investment. Simultaneously, the Federal Reserve was ending its “era of ultra-easy monetary policy” while banks in Europe and Asia were lowering their rates. The value of the U.S. dollar increased, causing Chinese companies to become less competitive globally. When the Fed raised interest rates in December of 2015, it made financial conditions “tighter and therefore slow[ed] growth across big swaths of the world.”

This slowdown caused less demand for oil and other commodities such as metals and agricultural products. Emerging economies felt this pinch and falling prices and high debt loads among energy producers in the U.S. generated losses for investors and stoked fears about the overall stability of the global financial system. The Fed intervened in 2016 by deciding not to raise interest rates and reducing their expectations of how much they would raise rates over the remainder of the year. As a result, the dollar weakened, oil prices began a recovery and spending was growing again by summer 2016.

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Putting Together the Office Property and Big Data Puzzle

Posted on October 15, 2018

By Jennifer Lefurgy, Ph.D.

The use of technology in office building operations has come a long way from motion-controlled light sensors and key card entry systems. Building owners and operators are beginning to use an array of increasingly sophisticated software and hardware to gather more information about how their buildings can not only can work more efficiently, but give them insights into how to attract and retain tenants. The NAIOP Research Foundation’s new report, The Office Property and Big Data Puzzle: Putting The Pieces Together, by Kimberly Winson-Geideman, Ph.D., discusses what defines big data, how it is being used by building owners, and some of the issues those who are working with big data should consider.

Big data is defined as high-volume, high-variety and high-velocity information that is produced in either structured formats (e.g., sensor data) or unstructured formats (e.g., pictures, text). The sheer influx of big data can be overwhelming for many companies; they often choose to sit on the data they collect with no concrete plans to use it. Therefore, some firms, particularly those without the resources to sift through large amounts of data, risk missing valuable information that could improve their bottom line and position them favorably in an increasingly competitive market.

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Lawmakers Try to Deliver QIP Fix

Posted on October 12, 2018

Lawmakers in both parties are beginning to understand the real-world consequences of a drafting error in the 2017 Tax Cuts and Jobs Act and are asking for a fix. Last week, a group of 12 Senate Democrats sent a letter to Treasury Secretary Steven Mnuchin urging action on the tax treatment of Qualified Improvement Property (QIP). A similar letter from 58 House Republicans was also delivered to Speaker Paul Ryan.

QIP is broadly defined as improvements to an interior portion of a commercial building. These include tenant improvements or an office build-out.

Kevin Brady, Chairman of the Ways and Means Committee, has promised to introduce and advance a technical corrections bill in the lame duck session of Congress, following the November midterm elections. But with Republicans’ majority in the House in jeopardy, it remains unclear whether Democrats will be willing to help move the bill before the end of the year.

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New 2018 CRE Compensation Reports Now Available

Posted on October 9, 2018

Recruiting and retaining top talent has become essential in today's highly competitive marketplace.

Is your 2019 salary and bonus package competitive? Find out with the 2018 NAIOP/CEL Commercial Real Estate Compensation and Benefits Reports.

These valuable reports enable commercial real estate businesses to stay current on salaries, bonuses and benefits for CRE professionals from executive to entry level positions. The reports include submissions from 400 companies; salary, bonus, incentives and benefits for 200 positions; and data from 100,000 distinct jobs in the office/industrial, retail and residential property sectors.

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