Charlotte January 2021 – Key Take Aways
• Neal McElveen with Terracon reports there is an uptick on Phase 1 work tying into existing projects or refinancing efforts. Tanna Thomas shares that their healthcare and manufacturing/logistic sectors remain strong.
• Bohler’s Andrew Moriarty and Dan Hines share that industrial and multi-family are the hottest products, with a lot of out of state interest coming into the state. In the multi-family space, the single-family-for-rent product is becoming more common.
• Joe Kinsey from CoStar shared some year-end data:
o In 2020, 8,000 multi-family units were absorbed with 12,000 units currently under construction.
o The industrial market saw 5.2M sf absorbed with 3M sf under construction (as compared to 8M sf under construction in 2020).
o The office activity is picking up with 40% of inquiries coming from out of state. The market is flooded with sublet space, 600k sf of quality space in the CBD, with 2M sf in the entire metro Charlotte area.
o In retail in 2020, 159M sf was given back nationally.
• Self storage, mobile home park and multifamily are the most active in Gates Grainger’s title insurance space.
• Joe Marek from Johnston, Allison & Hord also shared some statistics from year end:
o Related to covid, 2020 saw 6.6M jobs lost and $224B in lost sales revenue nationally (in Charlotte, 212K jobs were lost and $7.5B in lost sales).
o Rent collections were at around 85% in the 4th quarter.
o Cap rates were at record lows in Charlotte with industrial at 6.75%, retail at 6% and office at 6.9%.
• Susan Donkers with Global Location Strategies reports they have seen more proposal requests than in the last 6 years, with a ton of requests coming from out of the country. The industry sectors with the most activity are home improvement, pet food and food & beverage.
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