9/25/23 South Carolina Mastermind Group Meeting

South Carolina September 2023 – Key Take Aways

• Alita Webster with Young Office stated that their major partner Steelcase is seeing trends that companies are coming back to the office and CEOs believe that productivity is decreasing with people working at home. More amenities are being offered to employees to entice them to come back to the office. • Brad Toy with Wilson Kibler is seeing smaller scale retail developments. Tenants in the past were leasing – now they want to buy. • Brian Rogers with Home Trust Bank announced that the Fed did not raise rates last week. He said that they were focusing on what value add they can bring to their clients. • Caroline Chandler with Banker Exchange said that Florida and Georgia received an extension on 1031 deadlines because of the hurricanes. • Desmond Williams with Lima One Capital is seeing things on the up and up. They just had their 3rd largest month ever. They are seeing more bridge debt. Opportunity is out there. • Drew Aughtry with Home Trust Bank provides meaningful financial advice to small businesses. Provide a product that offers FDIC insurance for those with large deposits. • Edward Wilson of Wilson Kibler is seeing high productivity in the office market, but they are still having issues with financing. Still good velocity – but down about 15% from last year. • Gracie Law with Lima One Capital said that they have over doubled the budget on multifamily side. • JR Charles with City of Mauldin said that Mauldin set a record with new residential permits. They are seeing a lot of rehab, upfits and construction. Looking to do a new comprehensive plan for the city of Mauldin. There is still a great need for industrial land. • Laura Turner with Cherry Bekaert shared that relief issued for SC for tax filings extended from October to February. They are hoping for an extension of the beneficial ownership information act. • Scott Lynn with Cache Realty manages about 100 million. They are an investment and advisory firm based in Dallas. They recently invested with Realty Link in Clemson. • Tice Wellborn of Terracon is still seeing lots of multifamily, logistics, warehousing. They are seeing more international type clients looking for space – investing in properties that they would not have touched several years ago. We are running out of land in desired areas. • Tripp Glenn of Valbridge is still seeing low inventory which has helped keep pricing up. There are indications that capital markets are stabilizing. Volume is still down because of interest rates. • Walt Robinson of Wilson Kibler said that the bigger you get the more you are hurting. Sublease space is a concern. Small size industrial is still leading the way. Site selection is killing the deals right now. • Will McCauley of Creative Builders thinks it is so important to know your clients and who can get things done. The only movement in office space they are seeing is the smaller space that is company owned. • Will Owens of Terracon shared that the healthcare sector is Terracon’s largest sector in the 3rd and 4th quarters of this year. • Brent Ward with Alliance Consulting works in almost every market. The biggest change they have seen is the extra-large spec buildings being replaced by smaller ones. The biggest growth they have seen is in multifamily. • KJ Bryant with McGriff works in risk management insurance. He does not see any softening in sight with insurance rates. • Laura Moore with UBS have a pretty unique 1031 product. It is great for those that want a passive role.