Raleigh March 2021 – Key Take Aways
- Sam O’Brien of AdVenture Development is active in Johnston County, with hopes of an Eastfield Crossing groundbreaking soon. Mark Ashness of CE Group echoed O’Brien’s Johnston County comments, noting his activity in Smithfield. Scott Hadley also sees Smithfield and Benson activity.
- Tom White with NC State University reported:
- The federal government is investing $100M in the 1M SF Merck Vaccine Facility, where the Johnson & Johnson COVID vaccine will be made.
- ApiJect is investing 185 acres, 1+M SF, 650 jobs and $750 capital investment to produce fill finish vaccines in RTP, next to Eli-Lilly.
- Still waiting to hear about Fuji Films, a $1.8B, 722 potential investment.
- NC State finished its Offshore Wind Report and looks to generate new business.
- Nestle-Purina Pet Care is investing $400M and 300 jobs in Eden, NC.
- Pratt & Whitney announced a 1.2M SF plant at Biltmore Farm, a $650M, 800 jobs investment.
- Lumber mill projects are happening in eastern North Carolina.
- Marcus Acheson said Little Architects works on multi-family projects, sees mixed-use project recalibrated and some office/MOB uptick, and participates in adaptive reuse opportunities. Sharon Crawford said Little landed a spec office/lab campus in Morrisville, with 4, 250K SF phased buildings.
- Mark Ashness of CE Group noted client Triangle Innovation Point West (formerly Moncure) will develop 10-12 lots with spec buildings, starting by Q1 2022. CE Group works on Apex/Chatham residential projects and multi-family projects in 4-5 counties. Lengthy permitting times are testing.
- John Daly of Marcus & Millichap noted investors want to purchase, but there is a shortage of properties. Value-add can be found in areas like Fayetteville or Winston-Salem. John is focused on newer assets, as cap rates are similar to value-add in tertiary markets.
- Matt Martin of Federal Reserve Bank of Richmond said nearer term inflation rates will pick-up, but longer-term inflation rates are grounded. The US 10-year treasury is up 50 basis points.
- David Koehler of Wells Fargo said rate increases are not slowing loan demand. David is working with 3 multi-family developers with 6 projects each planned for NC in 2021.
- Jeremy Deckelbaum with TradeMark Properties partners with Vijay Shah and said TradeMark is moving into the multi-family space.
- Scott Hadley, Hunter Stewart of Lee & Associates said Sanford was named #5 US Micropolitan Area by Site Selection magazine. Lee & Associates is the new listing agent for MOSAIC at Chatham Park. Central Carolina Enterprise Park (CCEP) in Sanford is seeing 20K SF users come into market. Wegman’s pulling from Cary’s Fenton was discussed; big-box retail is concerning.
- Spencer Wilson with First Horizon Bank said it’s a unique part of the market cycle. Lenders don’t want to take risk outside of Raleigh/Durham market and are nervous about retail, office and hotel.
- Steve Kerlin of Terracon Consultants works on an 8K acre project in Columbus County, one of the largest solar developments in the state. Joe Starr sees activity in Wilson, and RDU is active again.
- Paul Scott of CoStar Group described a new product providing CMBS property information for users.
- Steve Brown of Investors Title Group said January was 15-20% higher in new construction starts from the standpoint of lien agent appointments than 2020, with February higher still.
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