Charlotte November 2020 – Key Take Aways

• Industrial, manufacturing and life sciences all remain strong.   Lot’s of flex buildings are being repurposed for R&D.
• Residential is hot in both single family and multi-family sectors.  New projects of single family rentals are also underway.
• While retail remains troubled, grocery anchored centers, c-stores, automotive and QSRs are still going strong.   Non-store retail sales are up 22% since February.
• Ten-X reports they are back at pre-pandemic levels with sales.  Many are trying to unload assets before year end or have 1031 exchange deadlines they are up against.
• It’s going to be a slog in the near term until a vaccine is widely available.   One of the largest challenges is with distribution due to super cold storage requirements.
• Multi-family rents are holding up for the most part.  Where evictions have started, the units are backfilling.
• EDPNC is working on a number of reshoring projects and seeing the number of inquiries picking up.  They are hosting a virtual trade show in February 2021 to connect manufacturers and suppliers.
• Johnston Allison & Hord and Investors Title are working on a number of projects related to the Marketable Title Act, which works to help developers/owners clear up older restrictions and covenants that are 30 years or older.
• Terracon is working on a number of HUD deals; low income multi-family market is incredibly busy across the southeast.
• Edifice reports lots of food & beverage projects, including the new GNT facility, are underway.  Construction pricing has remained steady, but more subcontractors are bidding jobs.