Key Take-Aways
• New RPN Members Kevin Dougherty and Mark McDonnell of AdVenture Development are working on Eastfield Crossing in Selma, a 400-acre, 2.8 million sq. ft. master planned, mixed-use development.
• CRE lawyers work with tenants and landlords on rent/mortgage payment and are seeing fewer new leases, but some in the medical office and lab space in RTP.
• Out-of-town interest in flex, industrial, multi-family continues, particularly in areas around airports. Office seekers want value, shorter terms and lower rates. Large homebuilders are active; smaller builders seek to re-trade.
• Leasing is coming back: The Walker in downtown Cary revs back up; Life Sciences is strong, with specific focus on pandemic, vaccines and antibody testing; industrial buyers are well-capitalized, ready to buy; and people are cautiously optimistic, but financing can be tricky.
• NCDOT situation is a “mess”; the cause is multi-fold. It will be problematic for NC for 1+ years.
• Non-recourse lenders are requiring more equity, shortening amortizations and adding in personal guarantees, which may be problematic for clients. Non-bank lenders are cautious about re-entering the market, which may slow this market until end of year.
• In banking, advanced manufacturing is active, and the loan renewal pipeline plus merger & acquisition activity are picking up. Wells Fargo funded 161K companies, with $60K average loan. Fifty percent of loans were below $25K; 80 percent were to companies of 10 people or less. Main street lending starts within next month, with minimum of $250K loan. PPP loan forgiveness talks are underway.
• CoStar acquired online auction platform Ten-X, Rent.com and STR, enabling more tools, multi-family online advertising and data for its users.
• Governor Cooper proposes the Invest NC Bond for the ballot this fall, to support public schools, UNC system, community colleges, clean water infrastructure and museums and zoos.
• Interest in adaptive reuse is happening; people are looking at older product, with aggressive interest in distressed properties. MOB activity continues with well-capitalized clients, with difference between healthcare systems and private physicians, as public more reticent to go to hospitals.
• ent economic development announcements are promising, including Grail Inc. in Durham and Grifols expansion in Johnston County.