Raleigh August 2023 Key Take Aways
• CoStar’s Nick Leverett reported office saw some Q2 uptick, but vacancies continue to rise. Rents on absolute basis are slightly growing. Multifamily has seen good absorption, but concern is oversupply. Good Q2 absorption in industrial; vacancies may rise due to supply. Retail is tight.
• Marlene Spritzer of Lee & Associates said she’s seeing less office sublease for smaller spaces, but vacancy in direct space has risen.
• CE Group’s Mark Ashness reported the cost to construct and rent rates are in conflict; players are entitling and waiting for interest rates to drop down and absorption to happen.
• Jeff Benson of Investors Title reported its activity is down 30% YOY in residential and commercial; single family construction and townhomes are still hot; he is seeing retail, multifamily activity.
• Town of Zebulon’s Shannon Johnson said the town had 30% population growth in 3 years: they have strong single-family home growth, available industrial, affordable land to develop, and reasonable utilities. The town is compiling sites to create large footprints. Zebulon has HUD Grant for a downtown master plan.
• Well Fargo’s David Koehler reported increasing capital constraints and challenges on profit margins: regional community banks must hold more capital. There’s increasing reserves on loan losses across every bank and increased discipline on deploying capital. Investor acquisitions have slowed. Refinancing side is slow, but David sees activity in Life Science and technology.
• Kirk Bradley of Lee-Moore Capital said Vinfast had a groundbreaking on July 28, and mentioned Plan Moncure, a growth plan focusing on conservation and including 3600 dwelling units. Kirk reported MOSAIC’s The Guild is seeing good leasing success and sees some progress in coworking. Kevin Scanlon discussed the challenges of multifamily lending and hospitality refinancing.
• NCDOT Deputy Secretary Julie White spoke on rail, noting one-third of ridership is first-time riders over the past quarters. Ridership is 28% up from 2022. She reviewed the Charlotte Gateway Station and NC Corridor ID Program opportunities. The DC to Charlotte Intercity Passenger Rail Corridor is in process as well as The S-Line, tying the NE to the SE. NCDOT works with partners on S-Line Transit Oriented Development and Mobility Hub planning, in areas like Sanford, Apex, and Wake Forest.
• Electric air taxis are coming. NCDOT has an Advanced Mobility NC Initiative. Julie discussed Microtransit, an on-demand, app transit solution, which started with Wilson RIDE Microtransit Service, and CASSI, the NCDOT Autonomous Shuttle Program, currently at UNC Charlotte.
Recent Comments