South Carolina June 2022- Key Take Aways
Megan O’Neill Of Wyche, PA said that developer clients that are using tax credits are moving forward with projects. Market rate developers (Multi-family or mixed use) are ready to hunker down for the next 18 months. Hud is favoring affordable housing.
Mark Fletcher of Bohler Engineering said that advanced manufacturing is leading the way, especially in South Carolina. They continue to see much activity in Life Science manufacturing and cold storage. There is a cold storage project for 750,000 sq ft which will serve as a federal regional stockpile for medicines, vaccines, etc.
David Lewis of Context Design Group said that business is slowing down a bit as clients are worried about the economy. They still have concerns with pricing and delivery.
Chuck McShane of CoStar Group says that they are seeing record levels of construction for multi-family and industrial. They are noting a slight slowdown in ecommerce. Comparing 1st quarter of 2022 to 2021 (record year), there has been a drop off in investment.
Tod Forrest of CoStar Group shared that industrial is still skyrocketing with new development and leasing. Many are pre-leasing before builds are finished. Spartanburg has 11 million of sq ft of industrial under construction. This is the highest in the nation.
Matthew Martin of Federal Bank of Richmond out of the Charlotte office said that inflation is unacceptably high. The clear policy goal is to end inflation. They are on high alert looking for declines in consumer demand. They are not seeing much yet in the Carolinas. Inflation is going to be at a minimum of 4-5% at the end of the year.
Cedric Colbert of Global Location Strategies says that on the consulting side they are at 49% of their sales goal for the year. They remain super busy as the Southeast continues to be very hot.
Andrew Porio of Tax Credit Marketplace shared that developers are starting to be concerned about access to capital but their investor demand remains strong. They have a 3-year pipeline of 51 million and growing. They will be attending the Municipal Association in Charleston in July.
Cory Memmot of Tax Credit Marketplace said that deals are thinning on the development side. The 2022 fund still on track to be the largest fund to date with 2023 and 2024 to be higher. He also shared that the house passed a tax relief bill that is a 1-time tax rebate.
Thomas Young of Young Office said that price increases are consistent – about every 90 days. Companies are starting to implement surcharges. Tom said that lead times for furniture are back to reasonable but lead time for flooring is getting worse. Demand is still as high as it has ever been.
Alita Webster of Young Office said that audio visual equipment is into shipping until next year. Suppliers are feeling the impact of the labor issues. She shared that we still have not felt the entire impact of the 2nd China shutdown.
Tice Wellborn of Terracon said that industrial, logistics, manufacturing and multi-family are still booming. He said that multi-family is shifting to using more HUD. There is a slight pause in due diligence of commercial developments. Is it a summer slowdown or is it a wait and see on economy?
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