2/28/22 South Carolina Mastermind Group Meeting

South Carolina February 2022- Key Take Aways

Megan O’Neil of Wyche Law Firm said that she was in Columbia last week for the ULI Carolinas Conference and that it was a great showcase of Columbia. Mark Cooter of Cherry Bekaert said that there were big changes in IRS reporting. US LLCs with foreign partners have new reporting requirements: K2 and K3 IRS Forms. He also reported that they are seeing more appreciation acceleration studies before the 2022 rule change. Chuck McShane of CoStar reported that we continue to see record low vacancy rates of 4% or lower in the industrial market. Chuck also introduced Kevin Johnson who is the new CoStar representative for Columbia. Thomas Boulware of NAI Charleston said that the market here is very strong especially Industrial and MF. Retail is doing well and office is starting to pick up steam in a post covid world. They are waiting to see how the impending interest rate hikes will affect the equation. Charleston had 36 ships moored off our coast last week. There are issues with container chassis and yard area to put containers. Warehouse space is in short supply. Josh Workman of Tax Credit Marketplace attended the SC Economic Development Legislative Reception. There was buzz about the House of Representatives approving a bill that would lower the state’s personal income tax rates. He also said that they are putting last year’s projects to bed as they continue to see more interest around the state. Andrew Porio of Tax Credit Marketplace said that there was impressive momentum in Columbia. He said that Columbia is doing especially well taking advantage of the Bailey Bill. The Bailey Bill authorizes local governments to offer a special property tax assessment for rehabilitated historic buildings. He reported that Florence continues to announce new projects. They are not seeing any slow down with announcements of new projects and downtown redevelopment. They continue to see high volume with 1031 projects. Mark Fletcher of Bohler said that we have not overbuilt warehousing yet in South Carolina. He reported that industrial, manufacturing, data centers, high density multifamily and quick service restaurants continue to boom. He also announced that the InterFace I-85 Industrial Corridor Conference is coming to Charlotte in April of 2022. Cedric Colbert of Global Location Strategies said that they were a full-service site selection company. He reported that they continue to see a tight market for existing buildings. Russell Hughes of Hughes Realty Advisors is a middle market specialist in Charlotte focusing on SC and NC. He reported that finding industrial properties is near impossible.