4/25/22 South Carolina Mastermind Group Meeting

South Carolina April 2022- Key Take Aways

• Kara Hamilton of Wyche, P.A. shared that leasing remains strong. She said that it is still very competitive in the industrial sector. In the office arena, Class A office space remains competitive. • David Lewis of Context Design Group says that their office remains extremely busy. They are hearing more and more about possible recession but are not seeing a slowdown yet. • Chuck McShane of Costar is attending the SC Apartment Association Conference this week in Columbia. He shared that they continue to see record rent growth. He also shared that the population figures from the Census showed that the fastest growing metros were those with 500,000 – 1,000,0000 in population. In South Carolina, Myrtle Beach, Charleston, and Greenville are among those fasted growing metros. • Laura Ulrich of Federal Reserve Bank of Richmond is currently in blackout. She has been traveling around doing roundtables with CEOs and CFOs in the district. She says that all are experiencing growth but the growth feels different in the different areas. Charleston companies are having a hard time bringing employees back to the office. They are losing employees to remote jobs. Administrative roles across the board are being lost to remote positions out of state. She also explained that there is a great resorting – shifting of positions and sectors. People are moving away from hospitality, education and health care to other sectors. She also shared that NC is really coming on strong right now – especially Raleigh. Apple is bringing 3,000 positions averaging $200,000 to Raleigh. • Andrew Porio of Tax Credit Marketplace has been all over the state in the last 2 weeks. He said that there is a lot of talk about workforce housing. There continues to be concerns about Senate Bill 1120 and it’s $15million cap. This bill could slowdown momentum in the industrial corridor. Historic rehab projects continue to move forward despite supply chain issues. 1031 exchanges continue to be triple the volume year over year. • Megan O’Neil of Wyche, P.A. touched on the subject of employees seeking remote jobs. She said that more virtual law firms were starting to pop up. Wyche closed a large multi-family development deal in Greer for a client a few weeks ago. In order to get it approved, the city of Greer required the developer to put in thousands of feet of sewer lines and transform an intersection. Municipalities are using the hot market to tag things on at the developer’s expense. • Brad Harvey of Amrada Analytics is an independent provider of Commercial Real Estate Finance services. We offer commercial real estate underwriting, acquisition due diligence, asset management, zoning, loan closing, and insurance review services. They have offices in Greenville, Dallas and Nashville. They are seeing some projects halted due to the rising costs of goods. • Will Giambalvo of Gallagher said that market continues to be choppy. He said that we could be getting to a top in the market place. Studies show that it might be an above average year for hurricanes. If losses continue to climb, rates will go back up.