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New Report: Economic Impacts of Commercial Real Estate (2019 Edition)

Posted on February 20, 2019

The NAIOP Research Foundation has published the Economic Impacts of Commercial Real Estate report.

Combining the economic contributions of new development with the economic contributions from operation of existing buildings, the following economic contributions were made:

  • Contributed $1.0 trillion to U.S. GDP
  • Generated $325.9 billion in salaries and wages
  • Supported a total of 8.3 million new and existing jobs

Key factors impacting economic growth in 2019 and beyond include the following:

  • Interest rates. They are projected to move higher in 2019 as the Federal Reserve raises its rate three-quarters of a point in two or three increments over the year;
  • Labor shortages. They are already appearing in several key sectors—construction is one of them—and will tighten further in 2019 with resulting increases in wage inflation;
  • Energy prices. which unexpectedly declined during the second half of 2018 are expected to rebound in 2019 to their highest levels since 2014; and
  • The resolution of trade wars and higher tariffs instituted in 2018 and how these might affect U.S. exports, which increased their contribution to GDP expansion in 2018.
Read the Report

Tentative Agreement on Federal Spending Deal

Posted on February 19, 2019

With a Friday deadline looming, lawmakers in Congress say they have reached a deal on a spending bill that would keep the government open for the rest of the fiscal year. Without an agreement, funding for about a quarter of the federal government would run out on Feb. 15.

The spending agreement would reportedly include some $1.3 billion for barriers on the U.S.-Mexico border. That’s far less than the $5.7 billion that President Donald Trump had been demanding.

During NAIOP’s annual Chapter Leadership and Legislative Retreat in Washington, D.C., last week, keynote speaker Bret Baier of Fox News suggested a compromise. Baier said Trump probably will not get a physical “wall” on the border, but could get increased funding for border security. He predicted that might be enough for Trump to declare a win on the issue.

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Deadline Approaching: NAIOP/Prologis Inclusion Scholarship

Posted on February 15, 2019

NAIOP and Prologis are partnering to provide a program scholarship to up to 10 individuals, helping prepare a pipeline of women and minorities for development and operations positions in commercial real estate.

Women or other underrepresented minorities who are demonstrating leadership and responsibility in the CRE profession are invited to apply for this program that will advance your industry knowledge and connect you with leaders across North America.

Applications for the scholarship are accepted online. The deadline to apply is February 22, 2019.

Learn more.

Charlotte NAIOP Members Advocate for Commercial Real Estate Issues on Capitol Hill

Posted on February 14, 2019

Members of the Charlotte Chapter of NAIOP traveled to Washington, D.C., last week to meet with members of Congress about issues critical to North Carolina’s commercial real estate industry. The Capitol Hill visits were part of NAIOP’s annual Chapter Leadership and Legislative Retreat, and gave Charlotte developers a chance to advocate on a range of topics, including:

  • Establishing a reasonable cost recovery period for qualified leasehold improvements;
  • Advocating for increased federal investment in our national infrastructure, including roads, ports and bridges; and,
  • Encouraging Congress to incentivize energy-efficient construction without imposing new mandates.

NAIOP Legislative Affairs Chair Jason Moore (Rodgers Builders, center) meets with Congressman Richard Hudson on Capitol Hill

During the course of the day, NAIOP members met with Senator Thom Tillis and congressmen Richard Hudson and Patrick McHenryThanks to those NAIOP members who took time out of their busy schedules to advocate for commercial real estate priorities on Capitol Hill!

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New State Law Exempts Charlotte Redevelopment Projects from Stormwater Controls

Posted on February 13, 2019

State legislation passed last month at the conclusion of the 2018 session of the General Assembly means redevelopment sites in Charlotte are no longer required to include on-site stormwater controls if no additional impervious surface is created. A provision in SB 469, a Technical Corrections bill initially vetoed by Governor Cooper but ratified through a legislative override, specifically mandates the change to local stormwater ordinances, regardless of where a local government obtains its regulatory authority.

While a redevelopment exemption for stormwater has been state law for years, the City of Charlotte has previously required controls on all projects, citing its adherence to a federal NPDES stormwater permit that called for higher local standards. REBIC has long argued that stormwater controls should not be required on redevelopments where no additional impervious surface is created.

The provision in SB 469 also allows development within a vegetative buffer, as long as the runoff from the entire impervious area of the project is collected, treated, and discharged through a portion of managed vegetative buffer. Of course, stormwater controls will continue to be required on sites whenever additional impervious surface is created.

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Charlotte Postpones TOD Ordinance Hearing as Draft Undergoes Revision

Posted on February 12, 2019

The Charlotte planning department has postponed a public hearing for its new Transit-Oriented Development (TOD) zoning ordinance from February 25th to March 18th, as it revises the proposal to incorporate feedback from REBIC and other stakeholder groups.

While the updated draft isn’t scheduled to be released until the week of February 18th, it is expected to include an expanded menu of incentives to encourage developers to include affordable housing, make infrastructure investments, or participate in the City’s Minority, Women and Small Business Enterprises (MWSBE) program. The current draft only offers developers an opportunity to increase their building height, which REBIC cautioned could be of limited value to developers. In a letter to City staff last month, we encouraged the inclusion of incentives that would provide variances on building length, building articulation, or required open space.

Other elements of the TOD ordinance that raised concerns include:

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NAIOP Center for Education Courses

Posted on February 7, 2019

NAIOP Center for Education offers on-demand courses that fit into your busy schedule.

A flexible format allows you to set your own pace. Take up to three months to complete a course.

NAIOP and Prologis Inclusion in CRE Scholarship

Posted on February 4, 2019

Diversity makes commercial real estate stronger.

The NAIOP and Prologis Inclusion in CRE Scholarship will be awarded to up to 10 individuals, helping to prepare a pipeline of women and minority leaders for careers in commercial real estate.

Women or other underrepresented minorities in the CRE profession are invited to apply for this program that will increase your industry knowledge and connect you with leaders across North America.

Recipients will receive:

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Unlocking Opportunity Zone Deals with Off-market Data

Posted on January 30, 2019

By Richard Sarkis

Opportunity Zones are here, and the commercial real estate industry is paying close attention. Established as part of the Tax Cuts and Jobs Act in 2017, the new government program is designed to stimulate struggling economies across the nation. Handpicked for specific economic criteria, over 8,700 designated census tracts are attracting investors and developers of all kinds for their tax breaks on capital gains.

While the benefits for investment are clear, many commercial real estate professionals are a little less clear on how to start their search. How, exactly, can investors efficiently locate and analyze these assets for investment? The answer lies in off-market data. As more players enter the Opportunity Zone market, off-market data and commercial real estate technology provide a simplified search experience to find prized properties before others do and empower stronger deal-making across the country’s most lucrative markets, in areas such as Chicago, Los Angeles and Miami.

Click here to read more.

Treasury, IRS Give Big Win to Real Estate Professionals in Qualified Business Income Rule

Posted on January 28, 2019.

Originally posted by REBIC.

The Treasury Department and the Internal Revenue Service issued final regulations regarding the new 20 percent deduction on qualified business income. As Americans begin preparations for the 2018 tax filing season, real estate professionals have been uncertain about the true impact of the 2017 Tax Cuts and Jobs Act on their respective businesses. Friday’s ruling from Treasury and the IRS, however, signaled a significant victory for the real estate industry and for many of the National Association of Realtors®’ 1.3 million members.

“Friday’s ruling is a result of several months of advocacy and collaboration between NAR, our members, and the administration,” said NAR President John Smaby. “These final guidelines will allow real estate professionals to benefit from the Section 199A 20 percent pass-through deduction, a move that will empower Realtors® to expand their operations and provide improved services to consumers and potential homebuyers across the country. The National Association of Realtors® is grateful for the openness and transparency encouraged by Treasury and the IRS, and we thank them for their hard work to ensure the real estate community was heard throughout this rulemaking process.”

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Welcome New NAIOP Charlotte Members

Posted on January 29, 2019

We are proud to introduce our new association members! The following is a list of individuals who have joined NAIOP Charlotte since October 23, 2018:

  • Abby Smith, Walbridge
  • Alex Mikels, Kane Realty Corporation
  • Daniel Flint, Brady Trane Service, Inc.
  • Emma Newell, SouthPark Interiors
  • Hunter Murray, First Citizens Bank
  • Janet Brown, Truliant Commercial Lending
  • Kevin Ammons, ColeJenest & Stone
  • Nick Grothe, Siemens
  • Richard Buttimer Ph.D, University of North Carolina at Charlotte
  • Steven Hess, Danis Construction Company LLC
  • Zac Snyder, Carter Bank and Trust

Mecklenburg County Property Revaluations Online Now

Posted on January 28, 2019.

Originally posted by REBIC.

The 2019 Mecklenburg County Property Revaluation is complete, and property valuations are now online at the Assessor’s website.  Look for your Notice of 2019 Real Estate Assessed Value in your mailbox in late January 2019, and remember that this Notice is NOT a bill. Your property tax bill will be determined by the tax rates adopted by Mecklenburg County and the City of Charlotte later this year (probably around July).

You can also use the tools on the County website to file an informal appeal if you think your property has been improperly valued. If you disagree with the results of your Informal Review Request, you have a right to file a Formal Appeal to the Board of Equalization and Review. You may request an appeal any time prior to the adjournment of the Board of Equalization and Review or within 30 days of your Notice of 2019 Assessed Value. All requests for appeal must be made in writing and on the proper form.

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CRE Must-Reads

Posted on January 21, 2019

  • Debunking The Three Myths Of Commercial Real Estate Technology - Forbes (Jan. 2, 2019) Read more
  • Google's Take on Co-Working and Sharing Spaces - GlobeSt.com – Subscription required (Jan. 7, 2019) Read more
  • In 2069, Your Food Will Shop for You - Medium (Jan. 3, 2019) Read more
  • Opportunity Zones: Navigating A Path to Investment - Newmark Knight Frank (December 2018) Read more
  • The surge in online-shopping returns has boosted the warehouse sector - CNBC (Jan. 4, 2019) Read more
  • Why developers are offering 'experiences' to attract suburbanites - Washington Post (Jan. 3, 2019) Read more
  • The Year Ahead: Down But Not Out - GlobeSt.com – Subscription required (Jan. 7, 2019) Read more

Apply by Jan. 22: National Forums Program

Posted on January 18, 2019

Are you interested in going beyond local NAIOP relationships by networking with other executives in your industry segment from across North America? Members of NAIOP's National Forums meet in select groups twice annually and connect online year-round. Learn more about the program and submit your application today.

Apply now

No QIP Fix, Partial Shutdown as Democrats Take over the House

Posted on January 17, 2019

The new Congress in Washington, D.C., features plenty of new faces, with Democrats controlling the House of Representatives for the first time since 2010. But the new class will be dealing with some old problems as 2019 begins. 

Most of the government was funded before the start of the 2019 fiscal year, which began in October. Yet 25 percent of the federal government remains shut down after lawmakers and President Donald Trump couldn’t agree on a spending deal. Trump insists he wants $5 billion to fund a wall along the Mexican border, which Democrat lawmakers are refusing. The president says the shutdown could last for “months or even years.” 

Also, the lame duck Congress failed to address some technical mistakes it made when writing the 2017 Tax Cuts and Jobs Act. For example, when they were writing the bill, lawmakers wanted to allow real estate businesses to depreciate Qualified Improvement Property (usually expenditures associated with interior tenant improvements) over a time span of 15 years. Instead, because of a drafting error, the law as written imposes a 39-year depreciation schedule. 

NAIOP is part of a coalition encouraging the administration and lawmakers to fix that mistake. Congressional lawmakers in both parties acknowledge the mistake and want it fixed. Before the outgoing Congress wrapped up, former House Ways and Means Committee chairman Kevin Brady released a draft reform bill for discussion. The new chair of the committee, Richie Neal (D-MA), says he wants to hold hearings to discuss the tax law. But making any technical corrections will require passing a new law, and it isn’t clear when that might happen.

How Technology Will Change the Brokerage Business

Posted on January 16, 2019

Written by Joan Woodard

Commercial real estate is in the midst of a digital revolution, and some of the biggest upheavals will affect professionals who work closely with property owners and tenants.

Technological innovation is accelerating in the commercial real estate space, and it has the potential to disrupt a large segment of the brokerage business.

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Charlotte Sets Public Hearing Date for New TOD Ordinance

Posted on January 15, 2019

The City of Charlotte has set a February 25th Public Hearing date for a new Transit-Oriented Development (TOD) Zoning Ordinance, despite a key Building Height Bonus provision still undergoing revision.

REBIC and other industry groups have worked with City staff on the draft for more than a year, as part of a comprehensive stakeholder review process that has seen a number of restrictive provisions pared down or eliminated. But the Building Height Bonus provision, intended to encourage the construction of Affordable Housing units along transit corridors, was only unveiled on December 13th, and has yet to be modeled for effectiveness.

The Height Bonus, which is designed to advance City policy priorities such as affordable housing, open space preservation and sustainability, will give developers the opportunity to amass points that can be used to increase their building height. It would allow buildings to rise as high as 300′ in the highest-density TOD district when the maximum amount of points are obtained. Developers would also be able to increase their building height by paying a fee-in-lieu that that would go into the city’s Housing Trust Fund.

Click here to read more.

New State Law Exempts Charlotte Redevelopment Projects from Stormwater Controls

State legislation passed last month at the conclusion of the 2018 session of the General Assembly means redevelopment sites in Charlotte are no longer required to include on-site stormwater controls if no additional impervious surface is created. A provision in SB 469, a Technical Corrections bill initially vetoed by Governor Cooper but ratified through a legislative override, specifically mandates the change to local stormwater ordinances, regardless of where a local government obtains its regulatory authority.

While a redevelopment exemption for stormwater has been state law for years, the City of Charlotte has previously required controls on all projects, citing its adherence to a federal NPDES stormwater permit that called for higher local standards. REBIC has long argued that stormwater controls should not be required on redevelopments where no additional impervious surface is created.

The provision in SB 469 also allows development within a vegetative buffer, as long as the runoff from the entire impervious area of the project is collected, treated, and discharged through a portion of managed vegetative buffer. Of course, stormwater controls will continue to be required on sites whenever additional impervious surface is created.

Thanks are due to the North Carolina Home Builders Association (NCHBA) and State Representative Dean Arp (R-Union) for their support of this critical legislation!

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Opportunity Zones: A Panel of Perspectives

February 7, 2019 - 6:00 PM to 8:00 PM
UNC Charlotte Center City 320 E 9th St, Charlotte, NC 28202

The Childress Klein Center for Real Estate and the Turner School of Accountancy invite you to an evening of networking and a vibrant panel discussion in Uptown Charlotte. The Panel will discuss how Opportunity Zones, as codified in the 2017 Tax Cuts and Jobs Act, can work towards our regions economic development goals. There will be a short networking reception following the panel discussion. 

Register today!

Event Schedule: 

  • 6:00-6:30 pm: Check-In and Networking 
  • 6:30-7:30 pm: Panel Discussion
  • 7:30-8:00 pm: Networking Reception
View Panelists Here

CREW Charlotte's 13th Annual Casino and Gaming Night is on Feb. 20

February 20, 2019 5:30 p.m. - 9:30 p.m.
Byron's South End
101 W Worthington Avenue
Charlotte, NC 28203

Join CREW Charlotte for a fun-filled night of networking with the most influential real estate professionals in the Charlotte area! Come play your favorite games at CREW's 13th Annual Casino and Gaming Night.  They'll have casino gamesas well as interactive games such as skee ball, pop-a-shot, giant Jenga and more!  Interested in sponsoring a game, dessert or beverages?  Please contact Patty Drummond

Raffle tickets are available for a Pigeon Forge Mountain Cabin ($10 per ticket, 5 for $40). For more information on the cabin, please click here. 

Casino Night Ticket (CREW Member) - $100 per person.


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