7/15/21 Charlotte Mastermind Group Meeting

Charlotte July 2021 – Key Take Aways

• Brokers are busier across the board and there is a lot of activity in multi-family and more general activity in downtown. (CoStar – Joe Kinsey. Terracon –Neal McElveen)
• Rents in urban areas are going up and demand for smaller units has recovered. (CoStar – Chuck McShane)
• The industrial market remains hot and there is a lot under construction. (CoStar – Chuck McShane, Bohler – Andrew Moriarty, Whiting-Turner – Jake Dyer, Economic Development Partnership of NC – Christopher Chung)
• The office market is uncertain and businesses are still figuring out how to bring employees back to the office and what that will look like when they do. Many companies hope to be back in some modified version by Labor Day. (CoStar – Chuck McShane. Bohler – Andrew Moriarty, Economic Development Partnership of NC – Christopher Chung, Terracon –Neal McElveen)
• There is retail construction happening in the suburban areas and also a lot of redevelopment going on in the retail sector. Even in redevelopment projects, it’s important to remember to consider environmental concerns such as wetlands and endangered species. (CoStar – Chuck McShane. Bohler – Andrew Moriarty, Terracon –Patrick Korn)
• There is lots of movement in the regulatory world regarding wetlands and waters. Federal administration is working to roll back to past guidance. Best to start early with due diligence. (Terracon –Patrick Korn)
• Lots of activity in Gaston County, including a lot of small projects. Some work has been put on hold due to steel prices. (Terracon – Ron Rothfuss)
• There are a lot of challenges to getting projects moving. Shortages of supplies are affecting the price of steel and other materials and labor shortages are also contributing. The price of lumber has leveled, but the effects are still being felt. It’s not clear how long shortages will last. Also, organizations across the board seem to be busy and getting permits and having title work done is taking longer than it used to take. (Terracon – Ron Rothfuss. Bohler – Andrew Moriarty, Whiting-Turner – Jake Dyer, Terracon –Patrick Korn, Investors Title – Gates Grainger)
• Hospitality and entertainment has been good in the last year. (Johnston Allison Hord – Brian Schoeck, Whiting-Turner – Jake Dyer)
• There are plans for industrial expansion in Wilmington. (Economic Development Partnership of NC – Christopher Chung)
• Activity has been good with several big projects such as Red Bull bringing in an unprecedented amount of investment money to the area. (Economic Development Partnership of NC – Christopher Chung)
• Foreign investment has been down with less activity out of China and travel restrictions making things more difficult. (Economic Development Partnership of NC – Christopher Chung)
• We’re in a period of fast growth with the vaccine rollout and openings happening sooner than expected. (Federal Reserve Bank of Richmond – Matt Martin)
• Inflation is a big concern. Many suspect it is transitory, but others fear it is not. CPI is up and producer prices are accelerating. (Federal Reserve Bank of Richmond – Matt Martin)
• Consumers are spending a lot of money on services, including travel, hotels and restaurants. But demand is outpacing supply. (Federal Reserve Bank of Richmond – Matt Martin)
• New home sales took awhile to bounce back, and now don’t have enough developed lots. (Federal Reserve Bank of Richmond – Matt Martin
• Home price growth is not expected to continue, but the demand is likely there. New homes have been low over the past decade. (Federal Reserve Bank of Richmond – Matt Martin)
• Short on jobs, but not short on job openings. Measures of economic activity have been strong, but still down on unemployment with people leaving the labor force for a variety of reasons. Employment is far below Covid levels, but nobody can find employees. Companies are compensating with automation and offering fewer services. Some of that may not return. (Federal Reserve Bank of Richmond – Matt Martin)
• Wages are moving higher, particularly at the lower end. (Federal Reserve Bank of Richmond – Matt Martin)
• Those making capital goods have to think about expanding. If we continue like this, there will be more companies making those decisions. (Federal Reserve Bank of Richmond – Matt Martin)