Raleigh August 2021 – Key Take Aways
• NC State’s Tom White reported Amgen is to build $550M biologics manufacturing facility, adding 355 jobs to Holly Springs. Seeing plant science + horticulture interest, with need for 100-200-acre Stevia farm within 1-hr of Centennial Campus. Shuttered Garland, NC shirt factory is re-tenanted. NC is a finalist for the 2027 Summer World University Games.
• Lee-Moore Capital’s Kevin Scanlon reported MOSAIC at Chatham Park broke ground on 65K SF building with retail, office, and condos and a 165-unit multi-family building. MOSAIC Comes Alive will take place the 1st and 3rd weekends of October, offering music and art markets, in conjunction with Triangle Parade of Homes. LMCC’s industrial parks see strong demand.
• Avi Grewal of SINGH Development expects occupancy in Cary multi-family by end of August. Experiencing delays due to labor, increased construction costs. Working on rezoning for Raleigh Assisted Living, new Cary project and Morrisville Town Center opportunity.
• GFD Management’s Stephanie Sparrow sees retail activity in outparcels, expansions, and openings. Few tenants still struggle, but the majority recovered.
• AdVenture Development’s Sam O’Brien announced starting Bldg. 100, 135K SF spec warehouse to open March 2022. Food Hall secured operator, will open Jan 2022. Marketing outparcels along 95.
• Hunter Stewart, Scott Hadley of Lee & Associates reported on the lack of zoning for Life Science users on industrial sites. Out-of-state Life Science investors are pushing Triangle prices, pushing industrial to tertiary markets, like Chatham, Harnett, Lee. MOSAIC’s MOB leasing activity impressive, but office tough. Scott said Harnett, Chatham and Holly Springs consider wastewater partnership. Sees trend with churches disposing of valuable property.
• Investors Title’s Steve Brown reported firm’s Q2 all-time record numbers. Sees large industrial growth in NC, especially I-40 and I-85 corridors, Winston-Salem, and Greensboro.
• Spencer Wilson of First Horizon reports the capital markets are busy. Seeing a wide disparity in borrowing range, from 2.5% to 4%+ for 10 years, and some concerns about cost basis, cap rates. Sees office leasing activity at under 10K SF in Class A, B+ buildings.
• Wells Fargo’s Rich Walters said LIBOR index is going away. SOFR, BSBY (Bloomberg rate) are options. Rich is working on office, multi-family, self-storage, retail and ghost kitchen.
• Marcus Acheson of Little Architecture reported investors more bullish on office and Life Sciences. Seeing activity on land and property sales. Sharon Crawford sees an uptick in workplace strategy.
• Bohler’s Andrew Moriarty said all sectors are busy, including retail. Commented on materials shortage. Mark Fletcher will focus on Business Development. Works in industrial, including data centers, cold storage and logistics; anticipates uptick in eastern ports.
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