Raleigh January 2022 – Key Take Aways
- Eric Vernon of Wyrick Robbins noted he sees interest in residential assemblages. Eric also reported Wake County towns see private/public initiatives to revitalize main streets.
- Anna McLamb of Wyrick Robbins said 2022’s main theme has been healthcare: senior living and medical office.
- Federal Reserve Bank of Richmond’s Matt Martin reported we closed 2021 with CPI at 7% year over year and a significant pick-up in inflation. There have been supply shocks, due to retirements and younger workers not back in labor force. He sees active discussion on reducing balance sheet.
- David Koehler of Wells Fargo reported potential of 3 or 4 rate hikes in 2022; Rich Walters added the first hike could be March. GDP was 5.6% in 2021; it could be 3.9% for 2022.
- First Horizon’s Spencer Wilson said rates moved 80 basis points in past 12 months; lender appetite is wide open. If cap rates go down/compress, pressure on yields is coming.
- Lee-Moore Capital’s Kevin Scanlon reported multifamily, medical is driving interest at MOSAIC, with decent retail activity, but less in traditional office. Kirk Bradley earned the 2022 Pillar Award, a TBJ SPACE Award. Kirk received an aggressive, unsolicited offer for Mebane multifamily product and commented on challenge of balancing construction costs with tenant rent.
- NC State’s Tom White shared an aeronautic project with 1500-2K jobs, $500-600M investment. WolfSpeed, CREE plan to expand. A new NC urban/rural dichotomy task force was formed.
- Lee & Associate’s Scott Hadley brokered 600 acres adjacent to Raleigh Executive Jetport and listed 220 acres near runway. Edge cities are pausing on apartments and townhomes. Marlene Spritzer said there were 19 life sciences facility expansions, with $4B investment and 4K jobs. Marlene is working with a biological and a synthetic peptide group.
- Stephanie Sparrow of GFD Management reported low vacancy in its shopping centers, with large box interest. She’s considering rent increases due to construction costs. She sees interest for testing sites and charging stations.
- Speaker Adrienne Cole’s Raleigh Chamber of Commerce team focuses on site selection consultant cultivation, product development and site assessment, and marketing and brand awareness. They work with existing companies and talent recruitment, retention and pipeline.
- Adrienne said they currently have 37 active projects, equaling 10K jobs, $2.6B in investment and including 11 HQ, 2 Cleantech, 12 Life Sciences, 10 Advanced Manufacturing, and 2 IT projects. In 2021, they announced 19 projects, with 7.8K jobs and $3.9B investment. Pipeline is robust.
- Adrienne said the Regional Transportation Alliance is working on creative RDU funding sources. Bus Rapid Transit is moving along; regional commuter trail will connect Raleigh and Durham.
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