5/19/22 Richmond Mastermind Meeting

Richmond May 2022 – Key Take Aways

Guest Speaker, Stacey English, Prince George County

Available Property
- 2 Industrial Parks in Prince George
  - SouthPoint Business Park
  - CrossPointe Center
- <300 acres of land for manufacturing/industry
- Property at 8800 Wells Station Rd, Prince George, VA 23875 which used to be Rolls Royce
Businesses located in the Enterprise Zones can take advantage of local incentives
- Machine and Tool Tax Credit
- Business License Tax Fee
- Water Sewer Connection Fee Discount
- Waiver of Rezoning Fees
Major Setback – water and sewer are at capacity. Existing buildings have an allocated water/waste usage however, all new builds do not.

Max Newlin – CoStar Group

CoStar Group purchased the old SunTrust building. They plan to start renovations soon and expand the team into that building.
Most recent acquisition was Homes.com
Hiring lots of young professionals, has internship programs, recruiting at colleges.
TenX is an online auction platform and you have to work with a broker

Christian Taylor – CoStar Group

Maynard Grizzard – Whiting-Turner

Labor is an issue
- Tough year for hiring
- 820+ interns this summer
- Not finding candidates at colleges
- Increasing pay 2x a year because of inflation
Materials Issues
- Cost increase
- Availability is hard
- Long delays
Interest rates going up will affect business
Preparing for a bumpy couple of years

Charlie Kreye – Draper Aden Associates

Single-family sales slowing down
Land acquisitions picking up
Urgency is slowing down on many projects
Grant money is good at the moment
- 8 EPA grants
  - 4 NC
  - 4 VA
- Completing lots of plan reviews for counties because they are understaffed

Andy Little – John B. Levy & Company

Big slow down due to interest rates
Expecting more slow downs
Locally multi-family deals are being put on back burner bc of interest rates and cost of supplies
Space argumentation: office space isn’t good now because in order to make the space look nice it is costing more than the rent justifies
Owner-occupant tenancy is better at the moment
Industrial is showing a good growth
- Working on a deal in Winston Salem to purchase a 150,000 sq. ft manufacturing establishment and turn into apartments

Doug Sbertoli – Williams Mullen

Is looking for a future market collision
- Interest rates
- Prices
- Lots of uncertainty
Labor Market is hard
Industrial – he doesn’t see a slow down
Multi-national businesses are impacted hard bc of conflict wiht Russia.
- This conflict is helping markets in other countries, such as Asia

Justin Sledd – One South Commercial

Employee recruit (a friend of his)
- VMI graduate
- Worked for Secret service for 6-7 years
- Wants to move back to Richmond
- Would be excellent at Project Management
Multi-family market deals are moving good in area
Pricing apartment rentals is a free for all because of inflation. People are paying the extremely high rents.
Lots of deals in Petersburg