Originally published on January 27, 2025, by Moore & Van Allen.

NAIOP Charlotte Member and Moore & Van Allen's Head of Environmental, Mary Katherine Stukes, was selected for the Charlotte Business Journal’s 2025 Women in Business Awards program.

The NAIOP Research Foundation has published the annual Economic Impacts of Commercial Real Estate, 2025 U.S. Edition, research study. The combined economic contributions of new commercial building development and the operations of existing commercial buildings in 2024 resulted in direct expenditures of $898.5 billion and the following impacts on the U.S. economy:

• Contributed $2.5 trillion to U.S. GDP.
• Generated $862.5 billion in personal earnings.
• Supported a total of 14.2 million jobs.

Other highlights from the report:

• Each $1 of construction spending generated a total value of $2.95 for the economy, reflecting the cumulative effects of the initial construction expenditures as they cycle.
• The U.S. Census Bureau estimates that private data centers represented 28.7% of office construction value in 2024, an increase from 19.7% in 2023. This is the first year the organization has separated data center construction from financial and general office construction.
• Industrial (manufacturing) and warehousing starts are down but still significantly above pre-pandemic levels. Much of the new online construction can be attributed to recent reshoring efforts in the U.S., including the CHIPS Act and Inflation Reduction Act.
• Demand for retail space in 2024 remained strong and shifted toward smaller, more creative spaces. Successful retailers offered experiential shopping with a more personalized touch or other activities, such as dining, for consumers to engage in between shopping. While larger department stores struggled, retail as a whole proved resilient.
• Some cities have experienced a larger recovery in office attendance than others. New York, for example, reached 82% utilization as of October 2024 and 91% for top-tier office buildings, indicative of a shift in demand to high-quality office properties. See data by State.

Download the Report

Originally published on January 6, 2025, by Ed Finkel for NAIOP.

The fortunes of the commercial real estate sector should be somewhere between status quo and modestly improved over the next year, with housing, industrial, data center, and advanced manufacturing among the most dynamic asset classes, according to a cross-section of developers and investors who sit on NAIOP’s board of directors.

Originally published on January 9, 2025, by Maria Gatea for NAIOP.

Self-storage construction has been on an upward trend since 2020 as the sector has become increasingly popular with American consumers, offering flexible solutions for life’s many transitions. While new construction has dominated the industry for decades, a significant shift is occurring: Existing industrial and retail buildings are being converted into self-storage facilities. This trend is optimizing urban real estate and meeting the growing demand for storage in densely populated areas.

2025 Cornerstone Sponsorship Info

NAIOP Charlotte has a strong and active membership comprised of commercial developers, owners, brokers, bankers, architects, engineers, attorneys, and title companies working to advance all commercial real estate sectors.

The Cornerstone Sponsorship supports and enriches the Charlotte Chapter while offering professionals and organizations an opportunity to build and strengthen relationships, increase brand visibility, attend key industry events, and have an active voice in Charlotte’s commercial real estate activities.

Cornerstone Sponsorship Program

On December 4, 2024, NAIOP Charlotte hosted the Annual Meeting: Navigating the Horizon in 2025. The panel peeked into the future of Charlotte's commercial real estate landscape as we explored the public policy shifts, legislative changes, and evolving business practices poised to shape the industry. Below are resources to dive deeper into the discussions.

• 2024 Midyear NFP P&C Client Claims Journal and Trend Report: https://www.nfp.com/media/l0spiupg/h1-trndclms-24.pdf 
• MVA article on PFAS designation: https://www.reuters.com/legal/legalindustry/implications-pfas-cercla-liability-commercial-real-estate-industry-2024-06-17/
• MVA article on wetlands: https://today.westlaw.com/Document/I0eb92c79379711ee8921fbef1a541940/View/FullText.html?transitionType=Default&contextData=(sc.Default)&VR=3.0&RS=cblt1.0&firstPage=true
• Information page re: Charlotte Water interbasin transfer request: https://www.charlottenc.gov/water/DevelopmentBusiness/Charlotte-Water-IBT
• Brownfields tax incentive information: https://www.deq.nc.gov/about/divisions/waste-management/brownfields-redevelopment-section/program-information/tax-incentives
• EPA's PFAS Enforcement Discretion and Settlement Policy Under CERCLA: https://www.epa.gov/enforcement/pfas-enforcement-discretion-and-settlement-policy-under-cercla
• Tax Policy Post Election - Preparing for the Trump Administration's Tax Policy Plans: A Sector-by-Sector Guide
• Basel III Endgame  - Federal Reserve Dials Back Basel III Endgame Regulation – Market Share
• Adaptive Reuse Introduced Legislation - Bipartisan Property Conversion Incentive Legislation Introduced – Market Share

ESG Reporting Requirements

• SEC – Insights | Elliott Davis | Aligning with SEC Climate Regulations: A Strategic Approach
• California's Impact on North Carolina Businesses - Insights | Elliott Davis | What SB 253 and SB 261 Mean for Your Company's Sustainability Goals

Originally published on December 16, 2024, by Daniel Maldonado for NAIOP.

As we approach the end of 2024, the life sciences space is undergoing a noteworthy transformation. After a sharp post-COVID-19 downturn for the sector, there is a significant revival in venture capital activity, strategic landlord adaptations, and evolving market dynamics on the horizon that may shape the future of life sciences real estate for the better.

Originally published on December 11, 2024, by Erik Spanberg for Charlotte Business Journal

The Charlotte Regional Business Alliance has hired Tracy Dodson to fill the newly created Chief Operating Officer position. Dodson, who now runs the city of Charlotte’s economic development division, will also fill the lead economic development executive role at CLT Alliance. This position has been vacant for a year.

Originally published on December 11, 2024, by Doug West for NAIOP.

In today’s office real estate market, flight to quality has created a race for landlords seeking to attract tenants and fill vacancies. While some tools are economical, like rent incentives, others are more concrete, including developing shared amenity spaces. In major metropolitan markets such as New York, an amenity offering is now a deal-breaking requirement rather than just nice. But what do these spaces look like, and how can landlords be sure they’re including the right ones?     

Originally published on November 25, 2024 by Kathryn Hamilton, CAE for NAIOP.

Supply chain dynamics, increased demand for “just-in-case” products, and a shift in where goods are assembled are three key drivers in a movement toward growing the manufacturing sector closer to home. NAIOP hosted an executive summit this month in Scottsdale, Arizona, to explore challenges and opportunities, and to hear from the developers, end users and experts who are influencing the trend and shaping the future.

Originally published on November 14, 2024, by Kathryn Hamilton, CAE for NAIOP.

Shannon O’Neil grew up in a small town in Ohio, not anywhere near the border. She was enthralled by stories shared by her grandmother and a great-aunt who traveled the world, which inspired O’Neil’s desire to work internationally. Today, she is the vice president, deputy director of studies, and Nelson and David Rockefeller senior fellow for Latin America studies at the Council on Foreign Relations. She was the keynote speaker at NAIOP’s Nearshoring/Onshoring Summit held in Scottsdale, Arizona this week.

Originally published on November 18, 2024, by Alexandra Both for NAIOP.

What is the best place to live in the U.S.? The answer varies, but livability often means striking the right balance between cost of living, city amenities, and quality of life. RentCafe.com measured livability in 139 metro areas using 17 metrics divided into three categories: socioeconomics, quality of life, and location and community.

Originally published on December 3, 2024, by Maria Gatea for NAIOP.

U.S. cities have experienced massive expansion across all real estate sectors over the past 44 years, according to recent StorageCafe research that looked at residential and commercial construction activity between 1980 and 2023.

We held its Annual Meeting at the Myers Park Country Club, where we elected the 2025 Board of Directors and awarded the 2024 Award of Excellence to Tim Sittema, the Managing Partner at Crosland Southeast.

Attendees delved into Charlotte's commercial real estate future, exploring pivotal public policy shifts, legislative changes, and evolving business practices. The panel of industry leaders examined critical topics including ESG initiatives, Basel III, environmental regulations, and local public policy, offering insights to help stakeholders stay ahead of emerging trends in the region.

Event Photos

Meeting Resource Information

Moderators

Sagar Rathie Crescent Communities			Tim Sittema Crosland Southeast

 

Panelists

Bobbi Jo Lazarus Elliott Davis		Peet Poillon NFP		Mary Katherine Stukes Moore & Van Allen

Problems with the Charlotte Area Transit System became obvious to many observers about two years ago when one of its light-rail trains experienced a derailment. It was later determined by the North Carolina Department of Transportation (NCDOT) to be the result of deferred maintenance.  Shortly after, Brent Cagle a seasoned expert on transportation matters, was brought in to lead the department on an interim basis.  

At that time, the City’s Transportation, Planning, and Development Committee also received a referral from the Council to engage in greater scrutiny of CATS and receive regular progress reports from Cagle. To establish even further transparency, the Federal Transit Authority (FTA) was asked to review to obtain additional guidance regarding corrective measures.  The draft report (see page 267 of the meeting packet) outlining its recommendations was provided during the most recent November 20th meeting of the Metropolitan Transit Commission (MTC) which is a body made up of local government representatives who oversee the System.  The findings included the following:

1. CATS deferred the required 600K overhaul of its rail fleet trucks which resulted in a derailment and in-service failure.
2. CATS rail fleet maintenance plan does not include the detailed requirements for existing equipment at certain defined intervals.
3. CATS has not met its miles between road calls goal of > 15,000 miles for the last three years.
4. Site visit observations found that CATS staff could not confirm the status and plans for the buses located in Lanes 15-17 at the South Tryon bus maintenance facility.
5. CATS could not provide FTA with a full assessment of all its system facilities and equipment.
6. Currently, each CATS department has a separate asset list with no central coordination.  
7. CATS does not report overall maintenance compliance to either senior management or the MTC.
8. CATS Safety Department conducts audits/reviews of the maintenance of CATS assets.  However, these efforts are not fully documented.

Following the update, Chairman Driggs expressed his feeling that the committee’s work was complete on the referral and that monthly updates from Cagle would no longer be necessary.  Although no formal vote was taken, most members of the committee appeared to share a similar view.

Charlotte’s Planning Director, Alyson Craig, provided a lengthy presentation yesterday to members of the Transportation, Planning, and Development Committee on proposed changes to the UDO.  She began her remarks with an update on “Clean Up Text Amendment #4”.  Some highlights included the following:

• Adds, deletes and modifies several general definitions.
• For N1 districts, clarifies where setbacks are measured from
• For residential development on corner lots, clarifies building orientation
• Updates procedural and applicability requirements for Neighborhood Character Overlay (NCO) and Residential Infill Overlay (RIO) districts
• Adjusts allowable building lengths for schools and places of worship
• Clarifies connection requirements for attached housing
• Allows duplexes, triplexes, and quads in additional zoning districts
• Another text amendment related to housing supply is likely to be filed after the first of the year.  Some of Craig’s reasons for pursuing such a measure appear sound.  Here were some of her thoughts:
• We are experiencing a housing crisis in Charlotte with demand outpacing supply.
• Gentle density can provide supply that is aligned to the Charlotte Future 2040 Plan, while providing for-sale housing opportunities.
• Initial Council referral dealt primarily with larger, greenfield development projects.
• A need exists moving us to focus on infill and small-scale development options (missing middle) to increase homeownership opportunities and inventory.

Some key elements to be included are:

• Appropriately scaled density: Explore ways to encourage stacked quads (2 over 2)
• Allow housing in more places: Develop more flexibility for housing through partnerships and conversions
• Affordable small-scale solutions: Revise ADU standards
• Make it easier to develop preferred housing types: Create preapproved pattern books for missing middle housing types
• Increase affordable housing tools and explore options to fast-track affordable projects

Time did not allow for the final presentation on the Community Area Planning Process which will be discussed in further detail at the next meeting.

Originally published on November 11, 2024, by Doug West for NAIOP.

Driven by changes in the business environment and the demands of modern corporate tenants, prebuilt office spaces have transformed from underused “leftover” spaces into an integral part of commercial leasing strategies. These modern, ready-to-move-in spaces are designed to meet the evolving expectations of both building owners and corporate tenants, offering flexibility, aesthetic appeal and functional elements that reflect current office trends.

Benefits of Creating Prebuilt Office Spaces:

1. Move-in Ready Convenience: Prebuilt offices allow tenants to bypass lengthy design and construction processes, providing immediate access to functional, ready-to-use spaces.
2. Flexibility for Tenants: These spaces can serve as short-term “swing spaces” for existing tenants during renovations or expansions elsewhere in the building, or as flexible offices for new tenants with short-term needs.
3. Market Appeal: By offering design enhancements (e.g., color schemes, additional materials and finishes), prebuilt spaces can be customized to meet the needs of a wide range of tenants with varied preferences.
4. Cost and Time Efficiency: Prebuilt offices eliminate much of the upfront design work for incoming tenants, helping to control project costs and speed up occupancy, benefitting both landlords and business owners.
5. Consistent Leasing Strategy: Once established, a prebuilt office program can be easily replicated or modified, offering building owners a consistent leasing product that adapts to market demands.
6. Scale: Creating a range of suite sizes, from as many as five or as few as one tenant space per floor, provides the leasing team with more options to offer potential tenants. Multiple layouts can be combined if needed, as long as the layout was created for flexibility.

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Originally published on October 30, 2024 by Joel Brenner for NAIOP.

It took more than 3,500 workers to build the Empire State Building in the early 1930s. Nearly 100 years later, commercial construction projects still require the work of hundreds to thousands of people to complete. Depending on their size, these projects can take anywhere from six months to 10 years to deliver. Managing that volume of workers across an extended period of time is a considerable undertaking. Success doesn’t just hinge on technical expertise; each and every member of the project team must be engaged, working together toward one common goal that unites them.

Originally published on November 5, 2024 by Shawn Moura, Ph.D. for NAIOP.

NAIOP Research Foundation Governors, Visionaries and Distinguished Fellows met in Las Vegas in October to discuss development challenges associated with water and power scarcity and possible research topics for future exploration. A panel, moderated by Marianna Hunnicutt, practice builder at Kimley-Horn, discussed how the development community in Las Vegas is working with utilities and municipal leaders to meet sustainability objectives and ensure access to water and power for future projects.

Originally published on October 11, 2024 by Ginger Meurer for NAIOP.

The supply imbalance in the office market has been stark the last few years, but panelists at NAIOP’s CRE.Converge conference this week identified bright spots and emphasized the possibilities for creative investors.