Originally published on April 18, 2023, by Eric Schmutz for NAIOP.

Congress returned this week from its Easter and Passover recess facing what promises to be a heated debate over raising the nation’s borrowing limit. On Monday, House Speaker Kevin McCarthy visited Wall Street to debut the latest House Republican proposal to raise the debt ceiling. In his speech, McCarthy stated that in the coming weeks, the House would approve a one-year increase in the debt limit that will include a reduction in discretionary spending to 2022 levels while limiting future increases to 1% annually over the next 10 years.  

Originally published on April 20, 2023, by Gary Tasman for NAIOP.

If you’ve ever attended a ceremonial groundbreaking for a school, restaurant, corporate headquarters, or other new building, you understand the symbolism of that first turn of the dirt. The groundbreaking ceremony signifies the physical start of a construction project. In most cases, however, months or even years have already been spent preparing the land for future growth, as planners and developers work behind the scenes to make the property “shovel-ready.”

During last night's meeting, the Charlotte City Council held a hearing on four text amendments related to the soon-to-be-implemented Unified Development Ordinance (UDO).  Since these were introduced several weeks ago, REBIC representatives met with Planning Staff and suggested revisions to the proposed amendments, some of which were accepted, and some were not.  This is the first round of changes that will likely be made over the course of the next couple of years.   Here are the details:

• Text Amendment to the Charlotte Tree Ordinance - (1) Adds new requirements for collected civil penalties to only be used to further the purpose, intent, enforcement, spirit, and requirements of the Charlotte Tree Ordinance with regard to the use of collected funds; (2) Corrects numerical and roman numeral sequencing in Articles; and (3) Deletes two unintentional words in one sentence.  
• Text Amendment 2023-056 - Amends the UDO for the use Landfill, Land Clearing, and Insert Debris (LCID) by (1) deleting it as a use permitted with prescribed conditions in all zoning districts except ML-2; (2) modifying the use in the ML-2 zoning district as a use requiring a conditional zoning that complies with the prescribed conditions; (3) increasing the distance between an operational portion of an LCID landfill to 50 feet from any property line; (4) adding a requirement that the actual fill area shall be located at least 300 feet from any Neighborhood 1 or Neighborhood 2 Place Type or an existing residential structure in any other place type; (5) deleting collector streets as a permitted primary vehicular access; (6) adding limited hours and days of operation for the use; (7) adding a requirement for a geomembrane liner and leachate collection system subject to state standards that is equal to or exceeds the state criteria for municipal solid waste landfill units; (8) adding a requirement that the use shall comply with the state groundwater well and surface water requirements for a municipal solid waste landfill; and (9) deleting the requirement for a zoning permit for the use. 
• Text Amendment 2023-057 - Amends the UDO to allow Multi-Family Attached and Multi-Family Stacked development in the CG and CR zoning districts under certain conditions and to modify the prescribed conditions for the principal use of Drive-Through Establishment and the accessory use of Accessory Drive-Through (formerly Drive-Through Facility) to limit their use in Centers Place Types.
• Text Amendment 2023-058 - This is a broad "clean up" amendment that corrects errors in the adopted ordinance and will improve functionality.  This is the first of many such amendments that will be proposed over time.  Click this link for a Summary Memo that describes the proposed language changes.  

Community Area Planning (CAP) started its spring workshops on March 28th with the West Middle geography. Workshops will be held in 14 geographies throughout the city. Each area will have a virtual, evening, and weekend workshop option. Spring/Fall workshops are part of the two-year CAP project, and the next step in implementing the Charlotte Future 2040 Comprehensive Plan. Community Area Planning builds upon the vision and goals in the Comprehensive Plan. It provides more detailed guidance for development, infrastructure, transportation, and other quality-of-life factors for each part of the city.

Not sure which workshop to attend?

In a move that is definitely backward motion, that will create uncertainty, and potentially threaten the economic vitality of an important part of our region, the Board of Commissioners of the Town of Mooresville adopted a resolution establishing a working group to study the legal requirements of imposing a growth moratorium. 

Last Thursday the Charlotte City Council held a Budget Workshop as it works toward a May/June approval of the Fiscal Year 2024 Budget set to begin on July 1st.  To view the full meeting, click this link.  Additional inks to presentations provided can be found following here: 

• Revaluation Update Presentation 
• Revaluation Impacts
• CATS FY 2024 Budget Outlook
• CATS One-Pager
• Charlotte Water FY 2024 Budget Presentation
• Charlotte Water One-Pager
• March 9th Budget Workshop Follow Up

Originally published on April 10, 2023 by Miles Haladay for NAIOP E-Newsletter.

America faces a multipronged real estate crisis. We have a stubborn residential housing shortage, high office vacancy rates, and flight from many downtown hubs that is killing off businesses servicing those areas. In West Coast cities like San Francisco, it’s been dubbed the “donut effect,” with workers moving farther away from the urban core.

Erin Shaw is slated to become the newest member of the Charlotte Mecklenburg Planning Commission as she received seven recommendations during last night's Council meeting earning her an automatic appointment.  Erin is a Managing Director with Beacon Partners, a REBIC Member, serves on the Charlotte Region Commercial Board of REALTORS®, a participant in the Urban Land Institute National Development Council, and is a member of NAIOP.  She will add a wealth of experience to the commission.  

Originally published on April 5, 2023, by Leona Savoie for NAIOP Newsletter.

The Canadian government enacted legislation on Jan. 1, 2023, that disrupted commercial and residential real estate development across the country. The Prohibition on the Purchase of Residential Property by Non-Canadian Act (the “Act”)  was originally intended to be a demand-side solution to make housing more affordable for Canadians by prohibiting residential purchases by non-Canadians over the next two years. However, the regulations under the Act, released only a week before enactment, unintentionally halted commercial investment in current and future residential and mixed-use projects in major metro areas.

Originally published on April 3, 2023, by Kathryn Hamilton, CAE for NAIOP E-Newsletter.

“There’s a really exciting trend emerging in hiring and compensation that’s going to accelerate throughout 2023,” opened Chris Lee, CEO of CEL & Associates, during a recent NAIOP webinar. “It’s the blending together of the quantitative – the numbers, compensation and bonuses – and the qualitative – workplace environment and benefits.”

The City of Charlotte UDO team is hosting two online (Zoom) informational sessions on Tuesday, April 11, 2023, to provide information about four proposed text amendments that have been filed.  If approved, these text amendments will be in place when the UDO and amended Tree Ordinance go into effect on June 1, 2023. They are: 

1. RZ#2023-056 concerning Land Clearing and Inert Debris (LCID) Landfills;
2. RZ#2023-057 concerning uses in Centers Place Types;
3. RZ#2023-058 concerning a series of clean-ups to the existing adopted UDO, and
4. Amendment making modifications to the Tree Ordinance.

The first session is scheduled from 12:00 noon to 1:30 p.m., and there will also be an evening session from 6:00 p.m. to 7:30 p.m.  The same presentation will be made at both sessions, so you may choose the time that is most convenient for you. 

Advance registration is required.  Please use the following link to register for one of these sessions. 

CharlotteUDO.org

Originally published by Kim Snyder on March 27, 2023 for NAIOP E-Newsletter.

In the Spring issue of Development magazine, I shared some of my thoughts on our industry, my goals as chair, and what I see as NAIOP’s greatest member value. I had so much to share that I quickly ran out of room! So, I’m sharing an extended cut of our conversation with our Market Share blog readers. If you already haven’t, I’d invite you to read my recent column in the Spring issue of the magazine.

Originally published on March 22, 2023, by Yonah Sturmwind and Kathy Kozak for NAIOP E-Newsletter.

“Where there’s a will, there’s a way.” This adage has never been more relevant for developers looking to finance new building projects. With Federal Reserve Chair Jerome Powell indicating that the Fed will continue to raise interest rates, traditional capital providers with strained balance sheets are pulling back on lending. And given the current economic outlook, many senior warehouse line lenders may also look to pull back on financing, opening the door for a more direct asset-by-asset approach. As a result, borrowers need to seek out alternative lenders that creatively finance their projects – enter nontraditional lenders and loan-on-loan financing partners.

Originally published on March 20, 2023, by Larry Lichtenauer for NAIOP E-Newsletter.

Impending recession expected to be grinding, enduring and especially difficult for Class B and C office space

With all signs pointing to an economic recession – presumably arriving midyear or Q3 – how can the commercial real estate community best plan for this event, what lessons can be learned from similar downturns, how long will this period last and which asset classes will be particularly hard hit? Recessions cause hardships and are never a good thing, but what silver linings and opportunities will be available to savvy investors and progressive companies? Offering their insights and perspectives on this topic are Anirban Basu, chairman and CEO of Sage Policy Group and Jennifer LeFurgy, Ph.D., vice president of knowledge and research for NAIOP.    

Community Area Planning will build upon the engagement efforts from both the Charlotte Future 2040 Comprehensive Plan & Policy Map. Attend a Workshop to learn about the process and to share your input regarding future development and growth in your area. 

Meetings will be held beginning next week (March 28th) on Tuesdays at 11:00 am, Thursdays at 4:00 pm, and Saturdays at 9:00 am.

Click here to see the full list and sign
up for one or more workshop events! 

Originally published on March 15, 2023, by Aquiles Suarez for NAIOP.

President Joe Biden submitted his proposed fiscal year 2024 federal budget to Congress on March 9. While the term “March Madness” is usually associated with the NCAA’s college basketball tournament, you could be forgiven if you thought it might also apply to this budget proposal. That’s because it contains numerous tax increases that repeatedly failed to clear the House of Representatives and Senate when these chambers were controlled by Democrats. With the House now in the hands of a Republican majority, chances are low that a majority of these recycled provisions will make it into legislation.

Originally published on March 14, 2023, by Marie Ruff for NAIOP.

Experts dug into the data behind labor and workforce trends in California’s Inland Empire and the surrounding regions, one of the most competitive labor markets for distribution and manufacturing workers in the western U.S., during a session at NAIOP’s I.CON West in Long Beach, California. Speakers noted that alternative markets like Phoenix and Las Vegas/Reno could provide valuable options outside of the Inland Empire, especially when considering total cost modeling.

Originally published on March 10, 2023, by Kathryn Hamilton, CAE for NAIOP.

As industrial spaces move deeper into urban areas, the need to build up instead of out will increase. Vertical industrial – whether used for fulfillment, maker spaces, labs or light manufacturing – requires a new approach, different requirements and a whole lot of explaining.  

Originally published on March 10, 2023 by Marie Ruff for NAIOP.

The industrial real estate market has been on fire, but this still-hot sector is expected to cool, according to the latest Industrial Space Demand Forecast from the NAIOP Research Foundation. A powerhouse panel of financial experts addressed the capital markets outlook for industrial real estate in a session at NAIOP’s I.CON West in Long Beach, California. 

That’s a wrap on the 2023 NAIOP NC Conference! Hosted by NAIOP Charlotte, NAIOP Raleigh Durham, and NAIOP Piedmont Triad, 400+ CRE professionals representing 195+ companies from 40+ cities & 12+ states met in Pinehurst on March 2 to hear the latest macro-economic trends, why companies continue to invest and develop in the state, how to help build the next generation of CRE talent and find out what’s happening in different market segments.

View Conference Photos 

Congratulations to the 2023 Project of the Year Award Winners!

Take a closer look at each project