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CRE Courses on Leasing, Marketing, Investment and more available now

Posted on July 20, 2018

TWO SUMMER COURSES ENROLLING NOW!

Leasing, Marketing and Negotiations
Aug. 15-Oct. 3, 2018
Wednesdays, noon-2 p.m. ET
Learn more.

Real Estate Investment and Capital Markets
Aug. 16-Oct. 11, 2018
Thursdays, noon-2 p.m. ET
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Advanced Development Practices





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Marcus and Millichap: Competition for Staff Invigorates Office Space Demand

Posted on July 16, 2018

The number of available U.S. jobs now exceeds the number of people out of work and seeking employment. At the end of April, job openings stood at 6.7 million while the number of unemployed reached 6.3 million. The June 2018 Marcus and Millichap Research Brief finds that an effect of a competitive labor market is that office-using employment is driving down office vacancy rates, and over the past 12 months, the professional and business sector has been expanding at a faster pace than overall employment, driving up office demand. The professional and business sector added almost 500,000 jobs and grew at 2.5 percent compared to the national rate of 1.6 percent. The increased hiring, according to the report, drove down the national office vacancy to 13.8 percent in the first quarter of 2018.

The Impact of Ridesharing on Real Estate

Posted on July 13, 2018

recent report by MetLife states that the expansion of ridesharing, autonomous vehicles and electric vehicles will result in “highly accessible, highly efficient and comparatively inexpensive transportation” over the next decade. Researchers believe that alternative transportation, including ridesharing, will partially substitute public transportation in some areas of the U.S. and complement it in other areas, while also bringing transit access to areas not served by public transportation. The report concludes that the greater acceptance of ridesharing will lead to an increase in value for development sites with good access to uncongested roadways but limited access to public transportation.

Food Halls are Reviving Retail

Posted on July 5, 2018

An infographic by Faith Hope Consolo, chair of the retail sales and leasing division at Prudential Douglas Elliman, finds that “food is the new fashion.” Younger shoppers are more interested in “eating while shopping than their parents and grandparents,” and this behavior is leading to a trend in “eatertainment”-style properties. The report predicts by 2020, the number of food halls of 10,000 to 50,000 square feet in North America could reach 300 (up from 100 in 2017). Additionally, the report recommends a new rule of thumb for malls: 70 percent of their space toward food, entertainment and lifestyle experiences, while the remaining 30 percent should be dedicated to retail.

Don't Miss Your Chance to Apply for NAIOP's National Forums

Posted on July 3, 2018

The Forums provide a unique opportunity for members to openly discuss project challenges, business opportunities and lessons-learned in a confidential and non-competitive setting. Over time, fellow members become a trusted circle of advisors.

The National Forums are an excellent way to become involved, stay in touch and develop new connections with key industry leaders.

To submit an application, create an account and apply using our online tool. Applications will be reviewed on a case-by-case basis by Forum groups as the official application deadline has passed. Notification of appointment will be emailed and followed by letter.

Click here to read more.

Supreme Court: States May Collect Internet Sales Tax

Posted on July 2, 2018

The U.S. Supreme Court ruled in South Dakota v. Wayfair, Inc. that states may collect sales taxes from online retailers, even if those sellers do not have a physical location in the state. That reverses a decision the Court had made in 1992 in Quill Corp. v. North Dakota.

NAIOP supports the collection of existing sales and use taxes from online retailers when these taxes are already owed to state and local governments, including backing legislative efforts in Congress that would specifically empower states to do so. Not collecting these taxes puts brick-and-mortar retailers at a disadvantage to out-of-state vendors whose purchasers can avoid taxes, as the Court pointed out in its decision.

“Each year the physical presence rule becomes further removed from economic reality and results in significant revenue losses to the States,” Justice Anthony Kennedy wrote in the decision. “These critiques underscore that the physical presence rule, both as first formulated and as applied today, is an incorrect interpretation of the Commerce Clause.”

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Build Smarter: Seven Ideas for Containing Construction Costs

Posted on June 29, 2018

By Clay Edwards

Though the real estate industry has seen a development rebound over the past decade, rising construction costs are weighing down the buoyant market. The persistent skilled labor shortage makes staffing and maintaining sites expensive. Materials are pricier, and now tariffs on steel, aluminum and lumber imports may only make the problem worse. At the same time, interest rate growth is converging with all these issues, making project financing more difficult to obtain and more costly.

recent survey of top construction lenders conducted by Construction Lender Risk Management Roundtable found that almost two-thirds said they saw projects running over budget either more often or much more often, and 87 percent said they saw projects running behind schedule, driving up the risk of project defaults and unfinished sites.

Click here to read more.

General Assembly Winds Down, with Both Wins & Some Unfinished Business for Real Estate Industry

Posted June 27, 2018

As the North Carolina General Assembly winds down an unusually short Short Session in Raleigh, Realtors®, home builders, property managers and developers are looking at some legislative victories — along with some unfinished business.

First, the wins …

  • HB 948 – Building Code Regulatory Reform — Clarifies existing language allowing licensed architects and engineers to certify components or elements of a building, without the need for a city or county inspection; gives builders the ability to request inspections from a state program in the event a local inspection can’t be provided within 48 hours; and, provides greater flexibility to the State Qualifications Board to grant provisional licenses to code enforcement officials. Thanks to Representative Mark Brody for his leadership in sponsoring this bill!
    Status: On Governor’s Desk
  • SB 224 — Landlord Recovery Expenses — Allows landlords to recover legal fees and other out-of-pocket expenses in summary ejectment cases. The legislation was introduced in response to a recent Superior Court decision that required a landlord to reimburse a tenant nearly $200 in eviction expenses after he paid his past-due balance.
    Status: On Governor’s Desk
  • HB 826 – Clarify System Development Fees — Clarifies and streamlines the water/sewer capacity fee authority approved for local governments in 2017. Thanks to Senator Paul Newton for his work on this important legislation.
    Status: On Governor’s Desk
  • SB 99 — Appropriations Act of 2018 — The state budget includes a crucial provision that allows contractors who pay tax on materials covered under the Repair, Maintenance & Installation (RMI) sales tax provision to pay those taxes at the retail level and receive credit from the Department of Revenue.
    Status: Session Law 2018-5

Now the unfinished business …



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City Council Approves Budget with $50M in Affordable Housing Bonds

Posted on June 26, 2018

pproved a budget for FY 2018/2019 that includes an historic investment in Affordable Housing bonds — assuming voters approve them in a November referendum.

The $50 million in Affordable Housing Bonds are part of a $223 million bond package that also includes $118 million for streets and sidewalks, and $55 million for neighborhood improvements. Voters will be asked to approve the bonds on November 6th, and REBIC will partner with the Charlotte Regional REALTOR® Association and the Charlotte Chamber to advocate for their passage through a wide-ranging community campaign.

The budget approved by Council also includes the following:

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General Assembly Approves Building Code Reform Legislation

Posted on June 25, 2018

The North Carolina General Assembly approved last week's legislation that would make substantive reforms to local building permitting and inspection processes both Mecklenburg County and statewide.

HB 948 – ‘Building Code Regulatory Reform‘ was sponsored by Rep. Mark Brody (Union), and makes some very beneficial changes to the permitting and inspection process that would benefit both home builders and commercial developers. They include:

  • Clarifies existing language allowing a licensed architect/engineer to certify a component or element of a building, without the need for a city or county to inspect and approve that component.
  • Gives the State Department of Insurance the statutory authority to assign Marketplace Pool inspectors to conduct an inspection in the event the local officials cannot provide one within 2 business days of a request.
  • Provide greater flexibility for the State Q-Board to grant provisional licenses to Code Enforcement officials who are certified and in good standing in other states, which will help address the growing issue of inspector vacancies across North Carolina.

HB 948 is now awaiting Governor Cooper’s signature. Thanks to the North Carolina Home Builders Association (NCHBA) for their leadership on this critical piece of legislation.

Matthews Considering Small Area Plan Zoning Overlay Districts

Posted on June 22, 2018

The Matthews Town Board this week held a public hearing on a proposal to create a new Zoning Overlay District that would make the land use and development policies in three Small Area Plans enforceable on all new development, regardless of whether or not a rezoning is involved.

REBIC spoke against the proposal, as did a small group of property owners who shared our concerns about the restrictions the Overlay would place on their property. The Overlay would impact all parcels in three Small Area Plans adopted by the Town between 2014 and 2017:

While a Land Use Plan serves a policy guide, a zoning overlay district has the force of law on all property in its defined geography, and supersedes any zoning rights in the underlying district. The proposed Overlay District would incorporate policies ranging from building design to lot setbacks, and apply to both new development and redevelopment in all three Small Area Plan geographies.

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Recognition for Foundation-sponsored Research

Posted on June 21, 2018

Emil Malizia, Ph.D., former NAIOP Distinguished Fellow, was featured in Planning magazine's July 2017 "Research You Can Use" column for his NAIOP-sponsored study, Preferred Office Locations: Comparing Location Preferences and Performance of Office Space in CBDs, Suburban Vibrant Centers and Suburban Areas.

Dustin Read, Ph.D., former NAIOP Distinguished Fellow, received a prize for research based on Case Studies in Innovation District Planning and Development, a NAIOP report he authored in 2016. His paper, entitled "Innovation Districts at the Crossroads of the Entrepreneurial City and the Sustainable City," won best paper in the mixed-use development category at the 2017 American Real Estate Society meeting.

The Tech-enabled Future of CRE

Posted on June 20, 2018

NAIOP Research Foundation Visionaries and other members of the Foundation’s Industry Trends Task Force had the opportunity to participate in a discussion with IBM Vice President Frank Cuevas, who oversees the company’s global real estate strategy and operations, at the 2018 National Forums Symposium in New York City. Cuevas leads IBM’s global real estate portfolio, which encompasses nearly 80 million square feet worldwide, including data centers, research labs and office space, housing some 380,000 employees.

Click here to read more.

Amenitize to Survive: Why traditional amenities are no longer enough

Posted on June 19, 2018

Years ago, the key to attracting and retaining a talented workforce was to relax the rules a bit: Casual Fridays, flexible work hours and teleworking were the employee perks du jour.

Now, the competition for top talent is driven by the demand for amenities of the less tangible type. The highly specialized labor force seeks a “more interactive, collaborative and socially vibrant office environment,” with “amenities that enliven the workplace and create the elusive concept of community,” according to NAIOP Research Foundation report, Activating Office Building Common Spaces for Competitive Advantage.

Click here to read more.

Welcome New NAIOP Charlotte Members

Posted on June 11, 2018

We are proud to introduce our new association members! The following is a list of individuals who have joined NAIOP Charlotte since March 15, 2018:

  • Jon Allen, Griffin Brothers Companies
  • Bita Asgari, Bank of America Merrill Lynch
  • Laura Beaver, Gensler
  • Michael Clark, Wells Fargo Bank
  • Robert Day, Kimley-Horn
  • Colee Haisten, Holder Construction Company
  • Brian Harrison, Greer Walker
  • Robert Jones, Crescent Communities, LLC
  • Anna Karageorgiou, Monroe-Union County Economic Development
  • Lisa Kincaid, Alfred Williams & Company
  • Alan Lewis, The Keith Corporation
  • Emily Reynolds, K&L Gates
  • Austin Watts, Kimley-Horn
  • Philip Wesbury, Builtech Services, LLC

Retirees Reshaping Residential

Posted June 18, 2018

Millennials are not the only demographic influencing the housing market; demographers estimate that the age 65-and-over population in the U.S. will double between 2010 and 2060, and this shift will most certainly impact real estate. According to the Curbed article, “The Changing Face of Retirement: Apartment Living, Active Lifestyles and Rural Homes,” retirees want different retirement amenities than previous generations. Traditional retirement communities that are isolated and offer not much more than golf are losing favor to urbanized independent living communities that have “clubhouses, fitness centers, lap pools, and walking trails.” Older adults do not want to be placed on “islands of old age,” the article states, and prefer age integration over segregation in their activities.

Southern US Cities Gaining Population

Posted on June 15, 2018

The U.S. Census’ newest population estimates reveal that eight out of the 15 U.S. cities with the largest population gains are in the south, with three of the top five located in Texas. San Antonio topped the list with an increase of just over 24,000 people between 2016 and 2017. Some of the other cities with the largest population gains were Phoenix, Arizona (24,000); Dallas, Texas (18,900); Fort Worth, Texas (18,700); Los Angeles, California (18,600); Seattle, Washington (17,500); and Charlotte, North Carolina (15,600). Fort Worth, Texas, surpassed Indianapolis, Indiana, to become the fifteenth-largest city in the U.S., with a population of 874,168. The list of the top 14 largest U.S. cities has not changed since 2016.

Tackling the Trucking Pain Point

Posted on June 14, 2018

Trucking moves about 70 percent of freight in the United States. The boom in e-commerce transactions has increased volume, which requires speed and accuracy in freight shipping. However, according to a C3 Solutions white paper, Leveling Up: Navigating the New Trucking Landscape, the trucking market has been at 100 percent capacity since 2004, resulting in driver shortages and rejected orders. Additionally, new regulations that address driver and food safety have further constrained delivery times. The report encourages trucking companies to seek solutions by diversifying their workforce (the industry is 94 percent male), and advises shippers to reduce driver time spent at drop-off facilities, use technology for better scheduling, and maintain good relationships with carriers. The researchers state autonomous or semi-autonomous trucks will help alleviate shortages, but implementation is still years away. The report concludes: “While the capacity crisis may be unprecedented, there are many operational improvements you can make to ease the pain it is causing your business. Making changes to adapt to the new [trucking] landscape should not be seen as an 'if', but rather a 'when'."

Cannabis Industrial REIT Revenue Up

Posted on June 13, 2018

Innovative Industrial Properties (IIP), a Maryland-based REIT specializing in the acquisition, ownership and management of industrial properties leased to medical cannabis facilities, reports in New Cannabis Ventures that its revenue jumped 107 percent in the first quarter of 2018. Rental revenues were approximately $2.7 million in the quarter, with a net income of $607,000. The company owns six properties located in Arizona, Maryland, Minnesota, New York and Pennsylvania totaling 706,000 rentable square feet, which were 100 percent leased at the end of Q1 with an average remaining lease term of 14.4 years. IIP recently acquired an 89,000 square foot medical-use cannabis cultivation and processing facility in a sale-leaseback transaction with a subsidiary of Vireo Health, Inc. Pennsylvania for “an aggregate consideration of $8.6 million (excluding transaction costs), which includes an approximately $2.8 million tenant improvement allowance available for additional improvements at the property.”

San Francisco Regulates Electric Scooters

Posted on June 12, 2018

The lack of regulation on dockless electric scooters has led to the devices being left on sidewalks and in front of building entrances, creating safety hazards in U.S. cities. To address this issue, San Francisco recently passed an ordinance establishing a regulation and permitting process for rentable scooters. Fortune reports that the San Francisco Municipal Transportation Agency has approved a one-year pilot program that will grant permits to five scooter companies. The permit cap “sets the stage for existing scooter operators Bird, Lime, and Spin—as well as host of other newcomers—to battle it for a chance to operate in the city.”