Raleigh May 2023 Key Take Aways
Shannon Johnson of the Town of Zebulon is applying for the Main Street Program, a national program taking a project approach to developing downtowns, overseen by NC Dept of Commerce.
Stout Ventures’ Griffin Dunaway said Stout is a private equity acquisitions real estate firm focused on industrial, flex, multifamily, Class B, C workforce housing, working in the middle-market, value-added real estate space. Stout focuses on IOS vs manufacturing properties for long-term holds. Griffin noted the insurance market is challenging.
Lee-Moore Capital’s Kevin Scanlon confirmed insurance comments, noting LMCC has been looking at steel as an alternative to stick-built due to insurance costs.
Hunter Stewart of Lee & Associates marveled at the price increase of industrial, from $4.50/ft in 2010 to $13.50 or $14/ft triple-net now.
NC State University’s Tom White noted EV charging equipment maker Atom Power is expanding by 205 jobs with $91K plus average wage in Huntersville. Kempower, EV and machine charging company, selected Durham for 600+ jobs and $41M investment; Plantd, an advanced production manufacturing company, announced 80K SF lease in Oxford, NC. NC State has 94 engineering interns in rural counties via the Rural Works NC State program, including Ideal Fasteners, Ontic, and Dill. North Carolina earned its 3rd straight 2023 Prosperity Cup from Site Selection Magazine in May.
Terracon’s Joe Starr considered new trends; he sees more workforce training on site, workforce housing on site, and childcare on site.
Marcus & Millichap’s John Daly reported multifamily rent growth has slowed due to uncertain lending. A gap between buyers’ and sellers’ expectations still exists. John expects stabilization as the government slows interest rates over next six months through end of year. Kevin Scanlon added that leasing “season” has returned, and banks are really scrutinizing multifamily lending.
Richard Oldham of Sanford Contractors said construction prices are stabilizing but not decreasing. Supply chain remains tough, specifically equipment, vehicles, and pre-cast materials. Permitting and inspections still experience delays. Richard said SCI was approved for a pre-apprenticeship program, is setting up a Construction Academy with CCCC, and started summer interns.
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