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Class A Buildings Push Office Market Stabilization

Office market vacancy rates kept surging for the 10th straight quarter to start 2022, according to the NAIOP Research Foundation. The group recently published its Office Space Demand Forecast for Q2 2022. You can read the full report here
Office building
The group boasted that Class A buildings are key in many parts of the country, bolstering net absorption rates in areas like the Sun Belt. These work spaces are key in brining in skilled employees. The group said "suburban markets and life sciences hubs are recovering better than the national average as more employers embrace a return to the office and the pandemic eases."

Other key takeaways mentioned 

  • Leasing activity is up year over year, which signals that firms are more comfortable making longer-term commitments to office space. Property owners have been willing to offer greater tenant improvements to encourage signing, indicating that tenants still have the upper hand in lease negotiations. These signals indicate a move toward a more stable equilibrium as the office market finds its balance.
     
  • Given these trends and signs of a slowing – but still growing – economy, net office space absorption in the remaining three quarters of 2022 is forecast to be 46.9 million square feet, essentially unchanged from the previous forecast for these quarters (46.6 million square feet).
     
  • Total net absorption in 2023 is forecast to be 47.3 million square feet, with an additional 6.5 million square feet absorbed in the first quarter of 2024.

Strategic Mobility Plan Out Thursday


UDO graphic

Thursday will mark the release of the Strategic Mobility Plan (SMP) draft. The public can access the May 19 meeting at this link.

The SMP’s goal is to shape the mobility future for the City of Charlotte and expand on the “Safe and Equitable Mobility” goal of the Charlotte Future 2040 Comprehensive Plan (2040 Plan). The SMP dives deeper into the mobility policies of 2040 Plan to achieve a safe, connected, equitable, sustainable, prosperous, and innovative mobility vision for Charlotte. To learn more, follow this link to the Strategic Mobility Plan homepage.

SMP Virtual Engagement Sessions will be live on Thursday, May 26 (6 p.m.) and Tuesday, May 31 (noon). Meeting links will be available by visiting charlottenc.gov/smp.

Additionally, you can sign up to share input during the public comment portion of the City Council Business Meeting on Monday, June 13, at 6 p.m.

UDO – Updates

On Wednesday, there will be a presentation on the findings related to the Economic Analysis of the draft UDO.


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Final Recommended CLT 2040 Policy Map

 

2040 Pic

The final recommended policy maps were released yesterday and can be found here.

  1. Please review any properties in which you may have an interest (current or future), provide comments online (either on the map app directly or via email to [email protected]), and let us know (via email) of any remaining concerns you may have. The comment period ends on March 21st.
  2. We are putting together a list of those who are willing to speak at the public hearing scheduled for the evening of Monday, February 28th. At this point it appears comments will be accepted both in person (PREFERRED – demonstrates higher level of commitment and interest in the issue) and virtually. If you or someone in your organization is available please sign up here and we will contact you.

The Policy Map is scheduled to be adopted on March 28th. The upcoming public hearing is our opportunity to convey any outstanding concerns to the ultimate decision makers – Members of the Charlotte City Council. General talking points will be available for distribution prior to the hearing.

INTERESTED IN SPEAKING AT THE CHARLOTTE CITY COUNCIL MEETING? SIGN UP HERE TO LET US KNOW!

New Charlotte Policy Maps

 

originally published by REBIC with permission to repost

2040 Policy Map Pic

Last summer the City of Charlotte Planning, Design & Development Department kicked-off the Charlotte Future 2040 Policy Map process as a first step in putting the Charlotte Future 2040 Comprehensive Plan into action. Thank you to those of you who have participated in engagement in this effort to date.

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Primary Election Date Moves Again

 

originally published by REBIC with permission to repost.

From the News & Observer:

North Carolina Senate Republicans plan on Wednesday to postpone the state’s primary elections to June 7, citing ongoing litigation of the newly enacted redistricting maps. The state Supreme Court scheduled arguments in the redistricting case for Feb. 2. The court in December pushed back the primary from its original March 8 date to May 17, as part of an expedited hearing schedule for challenges to the redrawn maps. But Sen. Ralph Hise, R-Mitchell, said Monday that the current schedule “is an extremely short timeframe that will cause unnecessary confusion and chaos.”

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Charlotte UDO & Policy Maps Update

 

originally published by REBIC with permission to repost. 

2040 Policy Map Pic

New schedule for Policy Map announced today:

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Economic Impacts of Commercial Real Estate, 2022 U.S. Edition

 

originally published by Brian Lewandowski, Jacob Dubbert, Michael P. Kercheval, Ph.D., and Richard Wobbekind, Ph.D. with permission to repost.

NAIOP Economic Pic

Development and construction of new commercial real estate in the United States – office, industrial, warehouse, and retail – generates significant economic growth at the state and national levels. This annual study, “The Economic Impacts of Commercial Real Estate, 2022 U.S. Edition,” published by the NAIOP Research Foundation, measures the contribution to GDP, salaries and wages generated and jobs supported from the development and operations of commercial real estate.

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Register for Tuesday's Special Webinar: Larry Sabato's Crystal Ball

Sabato Webinar

Political analyst Larry Sabato, Ph.D., will give his up-to-the-minute update on politics in this engaging and informative webinar. He will discuss today's political landscape, the midterm elections, and what we can expect Congress and the Biden administration to focus on moving forward.  

Sabato is a New York Times bestselling author, recipient of four Emmy awards, and one of the nation’s most respected political analysts.

A Rhodes Scholar, Sabato is the founder and director of the University of Virginia’s Center for Politics and has had visiting appointments at Oxford and Cambridge universities in England.

News from Around the Region

 

originally published by REBIC for Two for Tuesday with permission to repost.

Davidson

Bridge

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Charlotte Fire Department Update

 

originally posted by REBIC for Two for Tuesday with permission to repost

Charlotte Fire Department Pic

Starting 15 February 2022, Land Development application permits submitted will have to comply with NCIFC 507.1 and 507.5.1. for hydrant spacing. Hydrant spacing to sprinkler system FDC, (both NFPA 13 and 13R) will have to be within 200’ of truck travel to the respected fire hydrant.

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REBIC City of Charlotte Update

 

originally published by REBIC with permission to repost in NAIOP Charlotte

Two for Tuesday - REBIC

Alyson Craig has been named Interim Planning Director for the City of Charlotte and will officially begin her new role on February 1st. Likewise, the comment period deadline for the first draft of Charlotte’s Unified Development Ordinance (UDO) has been extended from January 14th into late February or late March. A final determination on that will likely be made during next Monday’s council meeting. The Transportation, Planning, & Environment Committee will receive a briefing at its regularly scheduled meeting earlier that day. As a result, some of the community outreach meetings have been rescheduled for later in the month. 

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City Releases Easy to Understand Reference Guide of Unified Development Ordinance

 

originally published by City of Charlotte with permission to repost on NAIOP Charlotte

City of Charlotte Pic

City Releases Easy to Understand Reference Guide of Unified Development Ordinance

CHARLOTTE, N.C. (Nov. 24, 2021) – The City of Charlotte on Wednesday released an easy-to-understand reference guide of the first draft of the Unified Development Ordinance.

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Charlotte Future 2040 Policy Map Survey

A special thanks to Elizabeth McMillan at Crescent Communities for sharing this information below.  Please pass along to your colleagues.

As a follow-up to the Charlotte Future 2040 Comprehensive Plan, the Charlotte Planning Department has moved into Part 2 of the implementation phase, the Charlotte Future 2040 Policy Map. This part of the process will translate the plan’s place-based policies to specific locations throughout the community.  The Planning Department has put out a survey to collect data and input from residents and professionals to help influence the Policy Map, which will help guide the UDO.

Please feel free to share this email with others in hopes that more of our voices can be heard.

Complete Survey

** The first page sets the stage for the previous work and gives an overview of the process, so may be helpful if you need a refresher.

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Important Government Affairs Update

Top 3 Items to Note:

  1. We are making significant progress on our efforts to identify and bring aboard a seasoned individual to provide additional eyes and ears on the ground in Iredell County and Cabarrus County.  More on that to come later this week.
  1. The City of Charlotte is seeking development/real estate representatives to serve on two advisory boards created by the passage of the policy section of the 2040 Comprehensive Plan.  It is essential we engage qualified and knowledgeable individuals to fill these positions.  We have an incredible opportunity here and I could use your help.  (Deadline is Friday, August 27th, details follow)
Charlotte Equitable Development Commission
The Charlotte Equitable Development Commission was created with the adoption of the Future Charlotte 2040 Comprehensive Plan by City Council resolution on June 21, 2021. The Commission is charged with advising in the assessment of infrastructure throughout the city and recommending strategies that balance equitable investments in areas most in need, including areas with absent and insufficient facilities, areas growing fastest, and areas targeted for growth. The Commission will work with the Office of Strategy and Budget to provide input on the development of the city’s proposed Capital Investment Plan. The Commission will provide regular updates to the Budget and Effectiveness Council Committee and quarterly reports to the entire Council.  The committee will consist of individuals with significant backgrounds in community development and infrastructure assessments. Examples of preferred experience shall include consulting engineers in the project development business; attorneys specializing in development; developers; independent business representatives; construction contractors; bankers or insurance agents engaged in the financial aspect of development; representatives from homebuilder's association; homeowners or neighborhood association representatives.
9 Members (3 appointments by Mayor, 6 appointments by City Council), Term Length – 3 years, 1 term
 
Charlotte’s Neighborhood Equity and Stabilization Commission (Charlotte’s NEST)
The City of Charlotte needs to address displacement caused by gentrification in a comprehensive, broad, and systematic, intentional manner. The recently adopted 2040 Comprehensive Plan includes the establishment of the Charlotte Neighborhood Equity and Stabilization Commission (Charlotte’s NEST). The City currently has an adopted Affordable Housing Framework coupled with a number of neighborhood programs that are used to address gentrification. However, the City desires to engage the community in developing additional strategies to limit displacement. Therefore, the Charlotte Neighborhood Equity and Stabilization Commission is established for a 3-year period and is charged with reviewing and recommending specific anti-displacement strategies and specific tools for protecting residents of moderate to high vulnerability of displacement. The Commission will make regular reports to the Great Neighborhood Council Committee, quarterly reports to the entire Council and provide recommendations for combatting displacement prior to the implementation of the Plan.
15 Members (5 appointments by Mayor, 10 appointments by City Council) who shall be appointed according to the following criteria:
- 3 appointees - Housing Advocates (1 appointed by Mayor, 2 appointed by Council)
- 3 appointees - Neighborhood Leaders or Community Organizers (1 appointed by Mayor, 2 appointed by Council)
- 3 appointees - Involved in the Real Estate Development Industry as specified below:
- Non-Profit Affordable Housing Developer (1 appointment by the Mayor)
- For Profit Affordable Housing Developer (1 appointment by the Council)
- Market Rate Housing Developer (1 appointment by the Council)
- 2 appointees - Residents who have experienced or are experiencing displacement (1 appointed by Mayor, 1 appointed by Council)
- 1 Urban Studies and Planning Representative with experience in displacement and gentrification and implementing equitable inclusive development strategies (1 appointment by the Mayor)
- 1 Housing Finance Representative with experience in rental housing finance and homeownership and affordable and subsidized housing (1 appointment by the Council)
- 1 Land Use Representative with expertise and experience in historic preservation and landmarks, zoning, and development rights (1 appointment by the Council)
- 1 appointee - Neighborhood Conditions Representative with expertise and experience in economic development, health, racial/ethnic segregation, schools and education and crime (1 appointment by the Council)
Term Length – 3 years, 1 term
 

For more information on the new advisory boards, please visit: https://charlottenc.gov/CityClerk/Pages/BoardsandCommissions.aspx

 

  1. The next phases of CLT Future 2040 (mapping and UDO) are underway –
    • Alan and I had our second monthly meeting with Taiwo and Alyson last Thursday.  As a result of that meeting, REBIC will be putting together a small group of design professionals that will meet with planning staff every two weeks (for as long as necessary) beginning a few days prior to the public release of the UDO on October 4th.  These meetings will allow REBIC representatives to provide feedback and to receive an immediate response, much earlier in the process, on elements of the proposed ordinance that could be problematic if implemented  It also allows us to be a cheerleader for those things in the UDO that help streamline the process and reduce development time frames.
    • Brenda Hayden will be joining Alan and me for the monthly meetings beginning in September.
    • A brief presentation containing the projected schedule for mapping/UDO is here.
  • Due to recent and higher than anticipated COVID infection rates, the Government Center has been closed to the public for the time being.

City of Charlotte - Draft Policy Maps

 

This is a very busy time, but a time to be involved and aware of what is happening in Charlotte.  Yesterday (10/13), the City of Charlotte released a draft of the Policy Maps. 

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Two for Tuesday - First Draft of Charlotte UDO Released

originally published by REBIC with permission to repost on NAIOP

Two for Tuesday


 

#1) First Draft of Charlotte UDO Released

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Two For Tuesday - 9/30/2021

Originally published by REBIC with permission to re-post through CRCBR.

Two for Tuesday - REBIC


 

 

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Congratulations to our Fall Golf Tournament Winners!

Congratulations to our Tournament Winners!

Thank you to all our Participants and Sponsors!

We had an amazing turnout at this year’s CRCBR/NAIOP Charlotte Fall Golf Tournament. Thank you to everyone who came out on September 27 at Carolina Golf Club and congratulations to all of our tournament winners!

Golf Pic

View Photos

Check back for more photos coming soon!

Gross Winners

Our first place winners based on GROSS were:

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House Ways and Means Committee Continues Markup as Senate Returns

Originally published on September 14, 2021, for NAIOP E-Newsletter.

The House Ways and Means Committee, chaired by Rep. Richie Neal (D-MA), will continue its committee markup this week of provisions to be included in the estimated $3.5 trillion reconciliation legislation to be considered by the House. The committee is conducting the markup remotely, as the full House is not scheduled to return until next week. The Senate returns this week, and Senate Majority Leader Charles Schumer (D-NY) has tasked Senate Democratic committee chairs with having their reconciliation bill language ready by Sept. 15.

 

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Survey Shows Progress in Diversity Efforts in Real Estate Investment Management

Originally published for NAIOP's Development Magazine Summer 2021 Issue by Trey Barrineau.

However, a lot of work remains despite tangible advances in recent years.

Women and minorities have made some progress in reaching the C-suite in commercial real estate investment management firms during the past few years, but the 2021 NAREIM Diversity & Inclusion Survey shows that there is still a lot of work to do.

“Material, sustained changes will take time to show through in the data,” said Zoe Hughes, CEO of NAREIM, in a release. “But what is clear is that there is a mandate and momentum for DEI (diversity, equity and inclusion) to be a priority within the real estate investment management industry.”

The survey, conducted by NAREIM and executive recruitment firm Ferguson Partners, reveals that the real estate investment management industry as a whole is mostly male and white. Men, who are 49.2% of the U.S. population according to the U.S. Census, comprise 60% of full-time employees in the real estate investment management, and non-Hispanic whites, who are 62.8% of the U.S. population, represent 73% of workers. (Blacks make up 6% of the industry, while Asians and Hispanics each represent 10% of CRE investment-management staffing.)

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