Raleigh July 2022 Key Take Aways
- Kurt Dumaw joined Wyrick Robbins as a real estate and business lawyer in 2020. He focuses on mergers, acquisitions and CRE, including property sales in Nashville, TN, and a JV agreement in Spain.
- Wyrick Robbin’s Taylor Emory attended UNC-CH for undergrad, Campbell for Law School and joined Wyrick in May 2022. He came from a Winston-Salem firm where he focused on Affordable Housing.
- Lee & Associates Scott Hadley said Thales Academy are working on property in West New Bern, Leland, Charlotte area, Rock Hill, Greenville, Richmond, Nashville, and Atlanta. In West New Bern, Scott forged relationships between ECU, NC State and Weyerhaeuser. Scott sees interest on the I-85 corridor. All his commercial land listed for sale in Lee County is under contract. There’s 76M SF of warehouse in Triangle, with 4.3M built or under construction; vacancy has not ticked up. Residential starting to slow. Multi-family, retail are currently holding.
- Wells Fargo’s Rich Walter said inflation is higher than expected, consumer spending is down, housing prices are lower, and we are on brink of a light recession. Re-fi activity is slow, but people still want to buy CRE. Rich is cautiously optimistic but senses slowing across all asset classes.
- David Koehler of Wells Fargo said underwriting is 5.5% interest rate and was 4.5% 90 days prior. He still has activity and sees refinancing opportunities. David sees appraisals happening to compare cap rates and has not seen issues with evaluations.
- TradeMark Properties’ Vijay Shah said retail is busy, but rates have not reduced. He works with QSR Slim Chickens to find outparcels across NC. Also works with Teriyaki Madness and Flying Biscuit, who opened in Chapel Hill and is coming to Fuquay Varina and Holly Springs. Vijay will soon sell 350-units in Greenville off-market.
- Marcus & Millichap’s John Daly reported strong national rent growth, partially due to increasing mortgage rates. He has listing inside beltline in Charlotte, Swan’s Run with 92-units, 21 acres. He also has Oxford and Raleigh area small- to medium-sized properties. There’s uncertainty around interest rates; increase in cost of living has people spooked.
- Joe Starr of Terracon said Oxford Properties is taking Research Commons and flipping from office to lab. Megasites are getting attention. He noted IIJA money hasn’t been deployed yet.
- First Horizon’s Spencer Wilson reported the market is turbulent with interest rates; treasuries dipped one week ago and move 10-20 basis points regularly. Most investors are not expecting the loan-to-value increase so quickly, impacting transactions in the $50M and under range. There’s 1031 money for smaller transactions. Anticipates a bumpy end of 2022 until middle of 2023.
- Tom White with NCSU attended the IME South Manufacturing Conference; NC is the best manufacturing state in the eastern seaboard. NC Workforce Development Leadership Initiative starts at NC State with 30 students. It’s like the UNC CH Economic Development Course started in the ‘60s.
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