8/19/21 Charlotte Mastermind Group Meeting

Charlotte August 2021 – Key Take Aways

• The end of Q2 saw a lot of positive momentum, with fewer sub-leases, good rent collection in shopping malls, and more retail leasing. (Johnston Allison Hord – Joe Marek, Investors Title – Gates Grainger, Bohler – Andrew Moriarty)
• The Delta variant and other coronavirus variants have created some new uncertainty in the market.  Many companies are re-instituting restrictions and taking action to reduce spread.  Spending data has been down (though the season may have also had an effect). (Johnston Allison Hord – Joe Marek, Investors Title – Gates Grainger, Federal Reserve Bank of Richmond – Matthew Martin)
• There has been a lot of activity in Multi-Family, Cold Storage and Data Centers.  Office has been struggling, while Industrial remains hot, particularly in the area between Atlanta and Charlotte.  Some old retail buildings are also being repurposed. (CoStar – Joe Kinsey, CoStar – Chuck McShane, Bohler – Mark Fletcher, The John Buck Company – Matthew Berry)
• The Fed has hinted toward a change in policy and have discussed tapering their large-scale asset purchases.  This has created some volatility in the markets, but the hope is that inflation is transitory and things level off. (Federal Reserve Bank of Richmond – Matthew Martin)
• Supply chain shortages and labor shortages continue to be a major obstacle.  Shortages are affecting a variety of commodities and affected commodities fluctuate often. (Bohler – Andrew Moriarty, Terracon –Tanna Thomas, Whiting-Turner – Jake Dyer, Siteworks – Eva Merideth, Federal Reserve Bank of Richmond – Matthew Martin)
• Environmental compliance is an important issue on many projects, with emphasis on sustainability, training, due diligence, auditing, etc. (Chubb Global Risk Advisors – Jamey Jones)
• ESG is a growing field and something companies are paying more attention to as a way to appeal to shareholders and consumers. It includes issues in the areas of Environmental, Social and Governance and companies are looking for guidance on how to identify both opportunities and risks in these areas. (Stuart Brodsky – NYU Schack Institute of Real Estate)
• There is a robust history of companies paying attention to ESG-type issues, including shareholders and consumers protesting against companies profiting from apartheid, companies like Walmart funding the education of employees, and HP working toward both gender parity and environmental sustainability. (Stuart Brodsky – NYU Schack Institute of Real Estate)
• The United Nations came up with 17 sustainable development goals, including ways to reduce poverty and social inequity, encourage responsible consumption, and protect the environment. (Stuart Brodsky – NYU Schack Institute of Real Estate)
• The real estate industry is becoming more mainstream and will benefit from paying attention to the factors affecting institutional dollars. (Stuart Brodsky – NYU Schack Institute of Real Estate)
• Problems in diversity begin early with attitudes of young people shaped by a variety of cultural factors.  Changing the diversity of companies will take time to develop. (Stuart Brodsky – NYU Schack Institute of Real Estate, Siteworks – Eva Merideth, The John Buck Company – Matthew Berry)