South Carolina January 2023 – Key Take Aways
Mark Cooter of Cherry Bekaert says that they remain busy. They are always looking for qualified people to add to their team. They are seeing lots of growth among clients. What to expect this year – omnibus plan – will limit syndicated conservation easement. You will have to hold it for 3 years – or cap on your deduction. Starting 2023 – bonus depreciation – 80% in 2023 will drop 20% off each year until 2026 and will be gone unless legislation passes.
Laura Turner of Cherry Bekaert very thrilled there were not massive legislative tax changes. Less legislative changes = more creativity.
David Lewis of Context Design Group is still busy. Big box spec buildings slowing down because of interest rates. Some large automotive projects looking at South Carolina. There has been a trend to bring the building permit process online for many municipalities – used to take 3 weeks, now could take up to 3 months to get permit.
Alita Webster of Young Office shared exciting news they acquired McWaters, a SC-based company with offices in SC and GA. Thus, Young Office doubled in size in January. She introduced Joey Mixson from the Columbia office to the group. They are hiring and looking for new teammates. Activity is still high – especially on the education side.
Josh Workman of Tax Credit Marketplace shared that their 2022 fund was up 75% from 2021 with 19 projects. They are currently looking to hire someone for their marketing department.
Andrew Porio of Tax Credit Marketplace continues to see demand for federal and state tax credits. Very busy December. They had a multi-family project close on the last day of 2022. Andrew will be speaking around the state on main street revitalization. Lots of projects in Rock Hill and continued activity in the Upstate. Encouraged by the momentum and pipeline. Andrew gave a shoutout to Mark Cooter of Cherry Bekaert.
Tice Wellborn of Terracon seeing a little bit of slowdown on environmental side at end of year – picked up at beginning year. People are looking for deals – every site they are looking at has an environmental concern. There is movement to revamp the brownfields program- underutilized. SC Best Program – should be established in the next few months with a 2-year trial period – 1 million dollar fund. Funded through EPA. They are excited to see what happens with that for the more rural areas.
Ed Wilson of Wilson Kibler focuses on large offices. Market in general is strong but there has been a lack of development on the office side for many years. No one is building office spec buildings.
Holly Schaumber of Douglas Development expressed issues with tax appeals lately.
Drew Schaumber of Douglas Development says they are dealing with typical construction issues. Transformers and meter centers still have very long lead times. 2023 qualified application plan still held up in legislature. Waiting to see what shakes out in the legislature. Hope to hear by March what tax credits look like for 2023.
Will McCauley of Creative Builders shared that construction prices are not going down – some going up. Multifamily sidelined – Georgia and NC have their programs going strong. Shannon Levine will drop the new zoning ordinances for Greenville this week. Big shakeup. Medical and Interiors going strong.
JR Charles of City of Mauldin says that they are seeing tremendous residential growth. He also mentioned the Bridgeway Station which will be an urban village along I-385 south of Butler Rd.
Bern Dupree of Furman Capital works on the investment side of NAI Earle Furman. Sales of existing multi family. Currently in pipeline to double supply. Expect to see slowdown. He says that interest rates are affecting sales and that the market is normalizing.
Imma Nwobodu of Greenville County Redevelopment Authority had 2 EPA assessment grants last year. Trying to focus on HWY 25. Housing development and infrastructure. They have 2 current projects in the city of Mauldin.
Darath Mackie of Lee & Associates sees a vast difference in geographical regions with how people are going back to office. Southern states have workers going back to the office. Office spaces of 5,000 sq ft and smaller are in demand. She is also seeing huge housing growth on HWY 25 with 2,000 homes under construction.
Tripp Glenn of Valbridge Property Advisors saw a Q4 slowdown on the lending side and feels like they are plateauing currently.
Randall Bentley of Lee & Associates finished strong last year. All of their projects from last year are still ago. They are confident in their pipeline for 2023.
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