Originally published on October 19, 2023, by Pamela Jew for NAIOP.

With the increasing push to return to the office, employers and developers are tasked with sweetening the deal for current and future employees in the office and industrial markets. Makeshift home offices and kitchen counters became the new office during the pandemic, and working from home came with its own set of perks, such as no commute and more flexibility of time. Promises of increased collaboration with the return to in-person work aren’t enough of an incentive. Now, workers across industries expect more when physically in the office.

Originally published on October 19, 2023, by Kathryn Hamilton, CAE for NAIOP.

Amazon’s real estate strategies have stretched and been reshaped over the last decade as the company – like every retailer – strives to expand its reach and get closer to the consumer. The largest developer of industrial real estate in the world, the company has always leaned into the innovation and partnerships that fuel its corporate culture and deepen its impact.

Originally published on October 19, 2023, by Victor Whitman.

Mass timber has a bright future within commercial real estate development but there are special hurdles that developers and builders must learn about and overcome, according to commercial real estate experts at NAIOP’s CRE.Converge in Seattle. 

Originally published on October 19, 2023, by Brielle Scott for NAIOP.

There are myriad key considerations involved in developing a successful, comprehensive ESG strategy, including meeting evolving investor and tenant demands, global drivers for ESG performance and expectations, the most pressing climate risks and their financial implications, emerging regulatory guidelines, green financing options, and more.

Effective immediately, NCDOT will be utilizing Accela (The City of Charlotte's Plan and Permit Platform) to approve Subdivision permits and Plats.  They are also testing out the process for Commercial permits.  For continuity and a better user experience, please submit your plans to the City through Accela and NCDOT through its existing portal.  Here are additional details:

• Please contact the NCDOT review engineer for that area.
• Charlotte Explorer has the NCDOT Review Areas layers that can be used to identify the review engineer.
• As part of that email, also copy Rashunda Harris ([email protected]) and Paul Harness ([email protected]).
• Email subject line: Include the NCDOT Permit Number and Accela number provided through the NCDOT Permit Portal to identify the project quickly.
• Plats: Include the NCDOT-approved permit number associated with the plat.
• NCDOT Comments: Staff comments will be through the NCDOT Permit Portal.
• Accela plan will have a generic comment stating that NCDOT comments will be available through the NCDOT Portal.  
• Plans must also be submitted through the NCDOT Portal.

If you have any additional questions about this new process, please get in touch with Hassan Malik, Acting District Engineer - NCDOT via email or at (980)523-0000 or (980)264-0386.

Originally published on October 16, 2023, by Kathryn Hamilton, CAE for NAIOP.

A 1.5 million-square-foot cold storage facility an hour south of Atlanta sits unassumingly among farmlands and other distribution warehouse facilities containing everything from mattresses to salad dressing to office supplies. Inside its doors though, racks and rows of premium chocolates are stacked high in an international chocolate producer’s distribution facility for the Southwest.

Originally published on October 17, 2023, by Nate Maniktala, LEED AP, MBA for NAIOP.

Commercial real estate leaders who are looking to reduce the greenhouse gas emissions associated with the construction of new industrial buildings can make use of new measurement tools, data and information, including from the “Embodied Carbon in U.S. Industrial Real Estate Benchmark Survey.” Now that the first article in this series covered the basics of embodied carbon emissions, where they come from, the environmental impact, and the importance of measuring the impact associated with building materials, this piece will focus on steps to achieve a lower embodied carbon footprint.

The NAIOP CRE Sentiment Index for September 2023 is 46, slightly down from the April 2023 reading, and indicating that respondents expect conditions for commercial real estate to worsen over the next 12 months. 

Key Findings:

• Respondents have a negative outlook for every component that comprises the Index except for asking rents, which they expect to be slightly higher next year. However, they now expect effective rents to fall slightly more than they had predicted in April, and their outlook for occupancy rates remains negative, suggesting higher asking rents will provide little relief.
   
• Respondents now expect capital market conditions to deteriorate less rapidly than they had predicted in April. They expect future equity availability will be almost as high as it is now, suggesting that equity flows may be close to bottoming out. Nonetheless, they still expect debt to be less available than it is now, and for cap rates to increase. In response to a question that is not used to calculate the Index, developers and building owners indicated they expect interest rates to be slightly higher than they had predicted in April.
   
• Developers and building owners expect their own deal volume to shrink but at a slower rate than in April. Their outlook for a reduction in the dollar volume of new projects and acquisitions echoes respondents’ expectations for a slowing decline in capital availability.
   
• Respondents still expect general industry conditions to worsen, but less than they previously expected. The score for general industry conditions (45) is calculated separately from the CRE Sentiment Index. Its continued rebound is most likely due to a less pessimistic outlook for the economy overall. Asked separately from the questions that comprise the Index, developers and building owners indicated they expect no change in local economic conditions over the next 12 months, an improvement from April.
    
• Respondents now expect employment in their own firms to decline slightly over the next year, suggesting that deteriorating market conditions are now being felt more directly by commercial real estate firms.

View Full Report

Originally published by Hany Guirguis, Ph.D., Manhattan College and Michael J. Seiler, DBA, College of William & Mary in August 2023 for NAIOP.

Given current economic conditions and recent demand trends, the authors estimate that quarterly net absorption of industrial space will average 52.6 million square feet over the next two years. Total net absorption for the second half of 2023 is forecast to be approximately 104 million square feet; full-year absorption in 2024 is forecast to be around 205 million square feet; and absorption in the first half of 2025 is forecast to be approximately 111 million square feet (see Figure 1 for quarterly projections).

Community Area Plans provide community-level guidance for the built environment including land use, design, transportation, and open space within the city's 14 sub-geographies.

These plans complement the Charlotte Future 2040 Comprehensive Plan and are an important part of the city’s planning framework which ensures all planning efforts are aligned and aimed at implementing Charlotte’s vision for the future.

Originally published on October 2, 2023, by Kim Synder for NAIOP.

Since assuming the position of NAIOP chair in January, I’ve had the pleasure of visiting chapters from Orlando to Milwaukee to SoCal, talking with thousands of members about current market conditions, the forces impacting our industry, and our future as an organization. Four topics have frequently arisen during these conversations, regardless of chapter location or size. These include:  

On April 10, 2023, the Mooresville Town Board established a working group for the purpose of evaluating and exploring the feasibility of implementing a development moratorium.  

The working group has completed its assignment and its recommendations are as follows:

• Complete the update of the OneMooresville Plan and the UDO to better align future growth.
• As part of the OneMooresville Plan and the UDO, identify areas with adequate infrastructure and encourage development in those areas that are walkable and provide access to other multimodal transportation choices.
• Identify and investigate areas which are not possible to serve with existing town resources to determine if these areas qualify for a limited moratorium.
• When the housing study is complete, integrate the findings into the UDO and OneMooresville Plan with the goal of achieving an appropriate balance of housing options.
• Continue to investigate local transportation bonds and federal and state grant opportunities to improve intersections and other mobility options such as sidewalks, greenways, micro-transit, and expansion of the Mooresville Main bus system. Annexation decisions should include critical analysis of the ability to provide complete and adequate infrastructure and services such as school capacity, utilities, multimodal transportation, and public safety.
• All new development project decisions should include a review of by-right and previously approved developments to determine the total impact of the project on the surrounding area.
• Promote the implementation of the Traffic Management Center to manage current road infrastructure.

For additional information, please visit the Town of Mooresville's Growth Management Working Group web page.

Want to help?  We invite YOU to get in a room with these leaders, roll up our sleeves, and get to work helping them move forward the right way.

The recently passed North Carolina State Budget contains millions of dollars for Union County to make sorely needed improvements to its water and sewer systems.  The final version contains the following funding allocations:

• Union County Water/Sewer - $26,000,000
• Waxhaw Greywater System - $1,500,000
• Wingate Water/Sewer System - $12,000,000
• Marshville Water/Sewer - $1,000,000
• Muddy Creek Water/Sewer - $11,000,000 

These funds are significant and should assist in enabling the County and associated municipalities to meet its current and immediate future water/sewer infrastructure needs.  The bill will become effective on October 2nd as Governor Cooper has announced his intention to let it become law without his signature.  To view the State Budget in its entirety, click this link.

Originally published on September 28, 2023, by Billy Olson for NAIOP.

Construction projects have many moving parts, stakeholders and dependencies. If money doesn’t flow smoothly from lender to borrower, a project can quickly become delayed. Because construction loans are funded in increments, rather than all at once, managing draws are of the utmost importance.

Originally published on September 20, 2023, by Aquiles Suarez for NAIOP.

Usually, at this time of year, members of Congress and advocates for industry are strategizing on how best to position their tax priorities for inclusion in a year-end tax package. In many instances, success has depended on a tax title becoming part of a massive, must-pass omnibus spending bill that comes together in December, when senators and representatives desperately want to get home for the holidays.

Originally published on September 19, 2023, by Julia Wattick for NAIOP.

Every industry is being challenged to reduce greenhouse gas emissions, especially with the U.S. government’s commitment to combat climate change and increase funding for these efforts. The construction industry has a considerable impact on global greenhouse gas emissions primarily due to its significant contributions to operational and embodied carbon, accounting for 28% and 11%, respectively, of total emissions.

Originally published on September 13, 2023 by Kathryn Hamilton, CAE for NAIOP.

“Less than 2% of industrial space today is cold storage, and it probably needs to be at 15%. We’re not even in the first inning,” opened economist KC Conway in a keynote session at NAIOP’s I.CON Cold Storage conference this week in Atlanta.

Last week, members of Charlotte’s real estate community spoke with several Charlotte City Council candidates to learn more about their views and how they see the future of Charlotte. Thank you to our event sponsors: Canopy Realtor® Association, Charlotte Region Commercial Board of REALTORS®, NAIOP Charlotte, Home Builders Association of Greater Charlotte, Inc. and the Real Estate & Building Industry Coalition (REBIC).

As a reminder, primary elections are on Tuesday, September 12.

Photo Album

Originally published on September 6, 2023 by Eric Schmutz for NAIOP.

Welcome to September! With temperatures starting to cool down, kids heading back to school, and football season kicking off, it’s easy to forget that the federal fiscal year ends at the end of the month. That means that there are only 11 days when both the House and the Senate are scheduled to be in session before the current federal funding authorization expires. Moreover, only one of the annual appropriations bills has passed the House and none have passed the Senate.