Last week, the U.S. Senate passed the Inflation Reduction Act of 2022, a $740 billion budget reconciliation measure with provisions to address climate change and energy security, extend federal healthcare subsidies, and allow Medicare to negotiate prescription drug prices. As we informed you last week, the bill, which had been negotiated by Senate Majority Leader Charles Schumer (D-NY) and Senator Joe Manchin (D-WV), contained a proposal changing the taxation of carried interests that would have harmed the commercial real estate industry and real estate entrepreneurs.

When the Schumer-Manchin agreement was announced, NAIOP and NAIOP Arizona, along with our national real estate allies, mobilized to support Senator Kyrsten Sinema (D-AZ) in her efforts to oppose the proposed changes to carried interest. In order to ensure her vote, the proposal was dropped from the bill before the legislation was brought up for floor debate.

We are gratified that the concerns of NAIOP and the real estate industry were considered on this very important issue. For more than a decade, NAIOP has successfully opposed various proposals to alter the tax treatment of carried interests, or “promotes” as they are known in real estate. While characterized in the media as affecting Wall Street hedge fund managers, these tax increases would have had a much broader economic impact, impacting real estate partnerships, the venture capital industry and others. We have been engaged with policymakers long before this latest proposal was introduced, and our members’ support has been extremely helpful.

Senator Sinema promised to continue working with Senator Mark Warner (D-VA) to develop legislation reforming carried interest taxation. I want to assure every NAIOP member that, on this and the other important issues affecting commercial real estate, we and our NAIOP chapters will continue our strong advocacy on behalf of you and our industry.

Last week, NAIOP members met with City Council Candidates Dimple Ajmera and Marjorie Molina to discuss important issues impacting Charlotte’s CRE industry.

The Lunch with a Leader series provides NAIOP Charlotte members an exclusive opportunity to meet and interact with key leaders in our community. Look for upcoming NAIOP Charlotte fall events here.

REBIC's Rob Nenfelt and his team put together this week's Two For Tuesday and UDO takes center stage early next week.

UDO - Public Hearing Scheduled for Monday

The Charlotte City Council has scheduled a public hearing on the proposed Unified Development Ordinance (UDO) for Monday, July 11. The Council Action Review begins at 5:00 pm followed by the Public Forum/Business meeting at 6:30 pm. An agenda should be available here by Friday afternoon. Click here to sign up to speak. 

Also, Planning Staff has just released responses to public comments submitted prior to last Thursday's deadline. Additional changes will be reflected in the next and likely final draft when it is released which will occur prior to the expected vote on adoption in late August. Here's a link to the page containing the Second Draft Public Comments - With Staff Responses.

For additional UDO resources, please visit Charlotte's Unified Development Ordinance (UDO) - (charlotteudo.org).

originally published by TOBY BURKE for NAIOP National with permission to repost. 

Governments at every level are considering polices to reduce greenhouse gas emissions from both stationary and mobile sources as part of efforts to address climate change. Some of these efforts have centered on initiatives to lowering domestic use on fossil fuels, such as coal, petroleum, natural gas and oil, by moving towards electric vehicles within our transportation system. According to the U.S. Environmental Protection Agency, the transportation sector is one of the highest sources of greenhouse gas emissions (29%) followed by electricity (25%).

originally published by  KATHRYN HAMILTON, CAE for NAIOP National with permission to repost. 

The need for cold storage facilities has exploded as e-commerce sales and grocery delivery demands multiplied during the last few years. Most cold storage facilities primarily handle food preparation or transit as products move toward consumers, but they can also be used for pharmaceutical, floral and chemical needs, among others, and frequently require varying temperature zones all under one roof.

originally published by Connect CRE and shared with NAIOP National

The COVID-19 pandemic changed all our worlds two years ago this month when full-scale shutdowns weighed heavily on the economy and Americans recalibrated their approaches to work and life. Since then, industrial real estate has continued to shine as commercial real estate’s darling – fueled by soaring demand, rising rental rates, and record levels of investment and development activity.

Industrial real estate professionals from across North America will gather in Long Beach, California, on March 23-24, for NAIOP’s industrial conference. Keynote session panelist Dwight Merriman, Partner and Head of Industrial in the Real Estate Group of Ares Management Corporation, sat down with Connect CRE to preview his keynote session: an executive outlook on the future of industrial real estate.

Read the Full Article

originally published by Nick Pipitone for Propmodo and shared with NAIOP National

If we’re looking at the effects of the broken supply chain on commercial real estate, it’s best to start at the beginning. And it all begins with the onset of the pandemic and its impact on manufacturers. Michigan Maple Block Company is a good example. On March 24, 2020, the Michigan Maple Block Company furloughed most of its 56 workers at its plant in Petoskey, Michigan.

originally published by Brian Harper, Director of Data Science, Avison Young, and Aaron Ahlburn, Innovation Lead, Global Logistics, Avison Young for the NAIOP Research Foundation

Supply chain disruptions have never been more salient to the average consumer. Congested seaports have received particular attention as record levels of inventory have piled up at ports and ships have been stuck offshore waiting to unload. While low levels of vacancy indicate robust current demand for industrial assets, developers, investors and building owners may wonder how closely industrial demand is tied to port activity and whether the current boom is sustainable.

originally published by TJ Parker for NAIOP Research and Publications

Industrial remains the darling of commercial real estate during the current cycle. Investor enthusiasm has remained strong, with total returns as measured by the National Council of Real Estate Investment Fiduciaries (NCREIF) in double-digit territory over the past cycle and demand showing no signs of slowing, especially as supply chain issues remain a crucial consideration for businesses and real estate developers. While last-mile industrial has been the focus of much of this investment, first-mile industrial is starting to attract attention. 

Read the Full Article

originally published by GARY TASMAN for NAIOP National with permission to repost. 

originally published by BRIELLE SCOTT for NAIOP National with permission to repot. 

Adaptive reuse projects can often be a high-risk, high-reward proposition, as aging or obsolete assets bring their own set of unique challenges for developers hoping to revitalize or reposition a property for new uses.

originally published by MELISSA PLASKONOS for NAIOP National with permission to repost.

Often in large development projects, design and construction teams focus on completing the building for the occupants’ short-term needs – about five years out from completion. Yet modern buildings have the potential to reach a lifespan of 30-50 years before requiring major renovations, according to Getty Conservation Institute. As climate change worsens and building resiliency becomes more top of mind for building owners and investors, a more forward-thinking approach to development is necessary.

Read the Full Article

originally published by VALERIE MAISLIN for NAIOP National with permission to repost.

Building on the NAIOP Research Foundation’s recent study, The Development Approvals Index: A New Tool to Evaluate Local Approvals Processes, several NAIOP chapters and George Mason University have collected data on development approvals across the United States and Canada.  

originally published by JEFF ZBAR for NAIOP National

The years leading up to the pandemic were hot for cold storage. It only promises to grow going forward.