South Carolina March 2021 – Key Take Aways
- Haynsworth Sinkler Boyd is starting to see more deals in areas that they had not seen in the past year, including some restaurant deals.
- Federal Reserve Bank of Richmond states that there has been a huge amount of spending prompting a fast track to a speedy recovery. The GDP has basically recovered. Low-wage workers continue to face job losses as recession has nearly ended for high-wage workers. There is an issue with structural unemployment. There will need to be programs to help reskill available workers for available jobs.
- NAI Columbia says that the industrial market is robust. There is a historically low vacancy rate of 3.2%.
- NAI Earle Furman is experiencing much activity on the office side. Clients are selling and purchasing office space versus leasing. It is cheaper to own than to lease.
- Bohler continues to see more and more activity every week in the grocery, industrial and cold storage markets. Residential continues to stay strong in all markets. The wait time on fabricated steel materials is driving construction schedules.
- Pattillo Construction says that the escalated prices of steel and their delivery is a huge issue. Prices might come down in June/July but fabrication still an issue. They have also seen a decline in foreign investors as they cannot travel for site visits.
- Terracon is seeing deals that they weren’t seeing 3 months ago. They have a number of hotels going to construction. The price of land has skyrocketed in Charleston. They too are seeing more selling versus leasing.
- Young Office noted that three billion dollars has been allocated for SC Public Schools. Young Office is forming a team to put a bid in for furniture, flooring & audiovisual.
- Cherry Bekaert stated that there will be an infrastructure bill this year. It will create more demand on materials and will be another shot in arm for the economy. There is a shuttered venue grant that provides capital to movie theaters, museums, live venues, etc. through the SBA. They also announced the the IRS has pushed back deadlines to May 15.
- First Citizens Bank said that opportunities are strong even in the retail sector. Rates are increasing slightly but are still historically low. They are still focused on PPP and forgiveness.
- Gallagher notes that the largest driver of insurance litigation is poor liquidity. They say that hospitality and malls have been hit hard on insurance side. Insurance has been favorable for single family, data and warehouse. Carriers are trying to keep prices the same but are decreasing capacity.
- Tax Credit Marketplace is very busy rounding up tax returns for projects. The Abandoned Building Act has progressed through the Senate and is currently in the House. They have many future downtown housing projects in Anderson, N Charleston, Greenville, Spartanburg, Columbia and Florence.
- Windsor Aughtry says they are very busy. If anything is not selling, it is not priced right.
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