South Carolina February 2023 – Key Take Aways
Josh Lonon of Wyche Law Firm was in Raleigh recently for ULI conference. Majority of folks at the conference had the same story – existing projects still moving – new projects are slowing.
Andrew Porio of Tax Credit Marketplace said that 2023 subscription document coming out soon with many state tax credits. Excited about the momentum. They recently had investors in town for federal credits – very impressed with South Carolina. He believes that we are insulated in the Carolinas from recession at this time.
Laura Turner of Cherry Bekaert is in full swing of tax season. They have had some opportunity zone issues popping up and have been doing some consulting on those issues.
JR Charles of the City of Mauldin was excited to announce that their BridgeWay Station urban village project by developer Phil Hughes is 100% leased.
David Lewis of Context Design Group remains busy. Focused on industrial market – 80% manufacturing. A couple clients slowing down projects – coming back but slowly.
AJ Abston of CoStar group covers both of the Carolinas. They are seeing a trend in Myrtle Beach with multifamily housing developments moving away from the beach. These projects are geared to the older demographics with many amenities.
Holly Douglas Schaumber of Douglas Development is still grappling with affordable housing –at a standstill. They expect a very thin round for 2023 if at all. House bill 4019 to eliminate housing board entirely and have someone that is appointed by Gov was recently introduced. Until the QAP is signed, nothing will move forward.
Tripp Glenn of Valbridge Property Advisors is not seeing much sales activity, but leasing is still robust. New construction is not happening, but clients need space.
Edward Wilson of Wilson Kibler was in Raleigh last week for SIOR Conference. Office in Greenville has been great. Starting to see more growth. There is still very little construction in the office area. Need to have buildings preleased at 60%. New Class Construction -we are still a good bit lower that Raleigh and Charlotte.
Walt Robinson of Wilson Kibler says that lease rates have over doubled in 2-3 years. No one has built small flex projects in years – now might be a time to begin. Tenant rep side – no product – fighting for deals.
Megan O’Neill of Wyche Law Firm said that clients are being conservative about putting new projects in pipeline.
Laura Ullrich of Federal Reserve Bank of Richmond says that it remains such an interesting time. Inflation is usually driven by demand surge or supply shock. With Covid, we were hit by both. In some ways we are seeing a pullback following interest rate hike, but we are not seeing a spending decrease. Inflation not coming down as fast as we would hope. Will continue to see rate increases and then probably a sustained level before it starts to go down. The interest rates seem extremely high to those 40 and younger.
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