Hampton Roads September 2022 – Key Take-Aways
RICHARD CROUCH, WOODS ROGERS VANDEVENTER BLACK PLC
• Lots of multifamily deals continue to develop.
• The Market remains steady with the same challenges that we have been faced with remaining.
• There is some interest in converting underperforming hotels into multifamily.
ADAM SAICH, FEATHERSTONE PARTNERS
• North Carolina has a lot of promise. Raleigh is a positive market.
• Raleigh NC has several business and amenities that provide interesting opportunities to those who live there.
• As much as Rent Control is being pushed for, it is not on the agenda of the government.
• Rent Control would affect supply, and the government has no interest in affecting supply.
JEFF PARKER, COLLIERS
• Some industries are still scaling back their space needs. The car industry being one of them. The car industry in flux. Going back to the days of ordering your car online out of a catalog.
FOUAD MOHIT, ALL TRADES GLOBAL
• Several of the car dealerships have a lot of land and space that is sitting vacant. The need for the physical space isn’t there anymore.
• 50 years ago, you picked your car type, color, etc, out of a catalogue. It makes sense to go back to that.
• Business is changing. Charging stations are making more money for gas stations than gas.
• The EV is affecting all the support services for vehicles. Jiffy Lubes, car dealerships, maintenance shops all are affected.
DAN SHELTON, WHITING-TURNER
• Lead times continue to be a challenge.
• 26 weeks lead time just to get brick.
• If you have critical timeline projects, prepare for lead times.
HANNAH TAYLOR, FEATHERSTONE PARTNERS
• There is interest in converting underperforming hotels into multifamily housing and even student housing because of the small footprint of each unit.
• There is a lot of volatility in the market.
• Too much volatility and too much interest rate risk to make a deal work in a specific timeframe.
• Time, and closing early is no longer a bargaining tool as it takes even two to three weeks to get a quote back.
• There is a lot of capital available out there, but it seems it’s all on pause.
• Lots more development than acquisitions taking place.
KEITH SLATTUM, DOLLAR BANK
• Regulations want you to use SOFR more.
• We are exclusively quoting 1 month term SOFR at the moment.
• Business is affected by worker shortage. Some Dollar Bank locations close for an hour during lunch due to lack of coverage. Some CVS Pharmacies do the same.
DAVID RUDIGER, BOYD HOMES
• Making it so all multifamily units in the future are outfitted for EV charging stations.
• Also making it so that all future projects are not just outfitted for EV charging stations, but also expandable.
• Batteries for EV are recyclable.
• Rezoning is an issue. Time and money get spent to secure rezoning with no guarantee to successfully getting something rezoned.
• Focusing on redevelopment projects. Converting malls, etc.
• Land development cost has gone through the roof.
o Deals make sense up until the point of looking at the land development cost.
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