Hampton Roads June 2021 – Key Take-Aways
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• Richard Crouch, Partner at Vandeventer Black and Champion of the Hampton Roads Mastermind Group, welcomed Members and Guests to the first live meeting since the start of the pandemic. His practice remains busy with no lull on the borrower and banking front, particularly with multi-family, industrial and self storage. 1031 activity is thru the roof, likely due to a fear of it going away or being adjusted.
• Whiting Turner’s Dan Shelton reports seeing an uptick on activity also in the industrial and warehouse markets and healthcare. Material increases and delays continue – lumber coming back down, but lead times are still off the charts, roofing material 4-5 months out, steel pricing remains heavily inflated. Staffing is also a huge issue – for them and all of their subcontractors. New, larger contractors coming to town (with casinos underway), which is also straining staffing.
• Ben Anderson with Colliers is working with a client in Elizabeth City and conducting feasibility studies on reuse of an existing building. He also reports there is strong demand, but limited supply.
• Guest Bart Burgwyn with First Citizens Bank shared they are working with a number of owner occupants and are also busy in the industrial sector. It has been an interesting year dealing with PPP loans and traditional banking basically being shut down. Bart also reminded everyone to take a look at the Employee Retention Credit.
• Keith Slattum with Dollar Bank shared they are working with a lot of self storage clients and REIT’s are looking at any and every deal. They are also seeing older motels being sold and converted into self storage. Reports in other sectors, deals are not getting done or are on hold due to materials pricing and delays.
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