While interviewing Tracy Montross, we discovered some amazing facts about her, and the impact this pivotal airport and airline has on the health of our entire region.  For instance, did you know that at one point during the pandemic, our own Charlotte Douglas International Airport (CLT) was the busiest terminal in the world?  It’s a testament to the airline that has helped put us on the world map in terms of attracting, maintaining, and growing business opportunities around the greater Piedmont region.

Charlotte, (or CLT which represents 5% of the entire GDP for the state of North Carolina) is fortunate to serve as America’s second-largest hub, connecting us to the world with an average of 560 daily flights, more than 170 destinations, and 23 countries, serving more than 42 million travelers in 2022.  Its regional impact on our economy, huge employment figures, and the way it supports our ability to attract world businesses; this is truly a subject REBIC wants you to know about!

Listen to this very entertaining podcast, here.

Originally published on April 20, 2023, by Gary Tasman for NAIOP.

If you’ve ever attended a ceremonial groundbreaking for a school, restaurant, corporate headquarters, or other new building, you understand the symbolism of that first turn of the dirt. The groundbreaking ceremony signifies the physical start of a construction project. In most cases, however, months or even years have already been spent preparing the land for future growth, as planners and developers work behind the scenes to make the property “shovel-ready.”

We definitely see growing momentum around the country related to adaptive reuse.  In some cases, this involves office-to-residential conversions and in others office to other institutional uses.  You may recall we started beating the drum on this back in November as one of our six strategies related to housing affordability (click here) with the mindset that increased production of housing units would be a positive outcome.

Since that time, we have had an opportunity to talk to a lot of folks who agree that we should see if we can make it work.

One architectural firm in particular, Gensler, has put much effort into the concept.  Click the links below to learn more about how these ideas could become a reality.

• Gensler Blog - What We Learned
• Gensler Blog - Converting Class C Office Space
• Gensler Webinar
• Calculator Presentation

During last night's meeting, the Charlotte City Council held a hearing on four text amendments related to the soon-to-be-implemented Unified Development Ordinance (UDO).  Since these were introduced several weeks ago, REBIC representatives met with Planning Staff and suggested revisions to the proposed amendments, some of which were accepted, and some were not.  This is the first round of changes that will likely be made over the course of the next couple of years.   Here are the details:

• Text Amendment to the Charlotte Tree Ordinance - (1) Adds new requirements for collected civil penalties to only be used to further the purpose, intent, enforcement, spirit, and requirements of the Charlotte Tree Ordinance with regard to the use of collected funds; (2) Corrects numerical and roman numeral sequencing in Articles; and (3) Deletes two unintentional words in one sentence.  
• Text Amendment 2023-056 - Amends the UDO for the use Landfill, Land Clearing, and Insert Debris (LCID) by (1) deleting it as a use permitted with prescribed conditions in all zoning districts except ML-2; (2) modifying the use in the ML-2 zoning district as a use requiring a conditional zoning that complies with the prescribed conditions; (3) increasing the distance between an operational portion of an LCID landfill to 50 feet from any property line; (4) adding a requirement that the actual fill area shall be located at least 300 feet from any Neighborhood 1 or Neighborhood 2 Place Type or an existing residential structure in any other place type; (5) deleting collector streets as a permitted primary vehicular access; (6) adding limited hours and days of operation for the use; (7) adding a requirement for a geomembrane liner and leachate collection system subject to state standards that is equal to or exceeds the state criteria for municipal solid waste landfill units; (8) adding a requirement that the use shall comply with the state groundwater well and surface water requirements for a municipal solid waste landfill; and (9) deleting the requirement for a zoning permit for the use. 
• Text Amendment 2023-057 - Amends the UDO to allow Multi-Family Attached and Multi-Family Stacked development in the CG and CR zoning districts under certain conditions and to modify the prescribed conditions for the principal use of Drive-Through Establishment and the accessory use of Accessory Drive-Through (formerly Drive-Through Facility) to limit their use in Centers Place Types.
• Text Amendment 2023-058 - This is a broad "clean up" amendment that corrects errors in the adopted ordinance and will improve functionality.  This is the first of many such amendments that will be proposed over time.  Click this link for a Summary Memo that describes the proposed language changes.  

A final vote on the amendments will likely be held prior to Memorial Day as the originally adopted ordinance becomes effective on June 1st.

Originally published on April 10, 2023 by Miles Haladay for NAIOP E-Newsletter.

America faces a multipronged real estate crisis. We have a stubborn residential housing shortage, high office vacancy rates, and flight from many downtown hubs that is killing off businesses servicing those areas. In West Coast cities like San Francisco, it’s been dubbed the “donut effect,” with workers moving farther away from the urban core.

Erin Shaw is slated to become the newest member of the Charlotte Mecklenburg Planning Commission as she received seven recommendations during last night's Council meeting earning her an automatic appointment.  Erin is a Managing Director with Beacon Partners, a REBIC Member, serves on the Charlotte Region Commercial Board of REALTORS®, a participant in the Urban Land Institute National Development Council, and is a member of NAIOP.  She will add a wealth of experience to the commission.  

 

In a move that is definitely backward motion, that will create uncertainty, and potentially threaten the economic vitality of an important part of our region, the Board of Commissioners of the Town of Mooresville adopted a resolution establishing a working group to study the legal requirements of imposing a growth moratorium. 

Last Thursday the Charlotte City Council held a Budget Workshop as it works toward a May/June approval of the Fiscal Year 2024 Budget set to begin on July 1st.  To view the full meeting, click this link.  Additional inks to presentations provided can be found following here: 

• Revaluation Update Presentation 
• Revaluation Impacts
• CATS FY 2024 Budget Outlook
• CATS One-Pager
• Charlotte Water FY 2024 Budget Presentation
• Charlotte Water One-Pager
• March 9th Budget Workshop Follow Up

Originally published on April 3, 2023, by Kathryn Hamilton, CAE for NAIOP E-Newsletter.

“There’s a really exciting trend emerging in hiring and compensation that’s going to accelerate throughout 2023,” opened Chris Lee, CEO of CEL & Associates, during a recent NAIOP webinar. “It’s the blending together of the quantitative – the numbers, compensation and bonuses – and the qualitative – workplace environment and benefits.”

Originally published on March 22, 2023, by Yonah Sturmwind and Kathy Kozak for NAIOP E-Newsletter.

“Where there’s a will, there’s a way.” This adage has never been more relevant for developers looking to finance new building projects. With Federal Reserve Chair Jerome Powell indicating that the Fed will continue to raise interest rates, traditional capital providers with strained balance sheets are pulling back on lending. And given the current economic outlook, many senior warehouse line lenders may also look to pull back on financing, opening the door for a more direct asset-by-asset approach. As a result, borrowers need to seek out alternative lenders that creatively finance their projects – enter nontraditional lenders and loan-on-loan financing partners.

Originally published on March 20, 2023, by Larry Lichtenauer for NAIOP E-Newsletter.

Impending recession expected to be grinding, enduring and especially difficult for Class B and C office space

With all signs pointing to an economic recession – presumably arriving midyear or Q3 – how can the commercial real estate community best plan for this event, what lessons can be learned from similar downturns, how long will this period last and which asset classes will be particularly hard hit? Recessions cause hardships and are never a good thing, but what silver linings and opportunities will be available to savvy investors and progressive companies? Offering their insights and perspectives on this topic are Anirban Basu, chairman and CEO of Sage Policy Group and Jennifer LeFurgy, Ph.D., vice president of knowledge and research for NAIOP.    

Community Area Planning will build upon the engagement efforts from both the Charlotte Future 2040 Comprehensive Plan & Policy Map. Attend a Workshop to learn about the process and to share your input regarding future development and growth in your area. 

Meetings will be held beginning next week (March 28th) on Tuesdays at 11:00 am, Thursdays at 4:00 pm, and Saturdays at 9:00 am.

Click here to see the full list and sign
up for one or more workshop events! 

Originally published on March 14, 2023, by Marie Ruff for NAIOP.

Experts dug into the data behind labor and workforce trends in California’s Inland Empire and the surrounding regions, one of the most competitive labor markets for distribution and manufacturing workers in the western U.S., during a session at NAIOP’s I.CON West in Long Beach, California. Speakers noted that alternative markets like Phoenix and Las Vegas/Reno could provide valuable options outside of the Inland Empire, especially when considering total cost modeling.

Originally published on March 10, 2023 by Marie Ruff for NAIOP.

The industrial real estate market has been on fire, but this still-hot sector is expected to cool, according to the latest Industrial Space Demand Forecast from the NAIOP Research Foundation. A powerhouse panel of financial experts addressed the capital markets outlook for industrial real estate in a session at NAIOP’s I.CON West in Long Beach, California. 

Originally published on March 10, 2023, by Kathryn Hamilton, CAE for NAIOP.

As industrial spaces move deeper into urban areas, the need to build up instead of out will increase. Vertical industrial – whether used for fulfillment, maker spaces, labs or light manufacturing – requires a new approach, different requirements and a whole lot of explaining.  

Originally published by Marie Ruff for NAIOP E-Newsletter.

The next phase of advanced manufacturing innovation is ready for launch in the Long Beach region of California. Attendees of NAIOP’s I.CON West were able to go behind the scenes on a project tour of cutting-edge advanced manufacturing facilities in Douglas Park, an industrial, retail and hotel center that spans more than 260 acres adjacent to the Long Beach Airport.

Originally published on March 9, 2023, by NAIOP.

NAIOP is again partnering with CEL & Associates, Inc. to compile the 2023 NAIOP/CEL Commercial Real Estate Compensation and Benefits Survey. A nationally known real estate advisor, CEL has conducted this survey – the largest in the industry – for 34 consecutive years.

Originally published on March 6, 2023, by Eliza Theiss for NAIOP E-Newsletter.

Three years after the COVID-19 pandemic upended the office sector, it remains in flux. While many businesses have fully committed to hybrid and remote work arrangements, others are becoming more adamant about getting employees back into the office. And, according to the CommercialEdge U.S. office market analysis, there will be even greater uncertainty and upheaval as the industry transitions to a new status quo.

Originally published on February 27, 2023, by Janet Pogue McLaurin AIA, FIIDA, NCIDQ , LEED AP for NAIOP E-Newsletter.

Office workers around the globe scrambled to suddenly work from home in March 2020 at the beginning of the COVID-19 pandemic. As the global pandemic raged from weeks to months to years, we adapted to virtual meetings and new ways of working. It fundamentally changed how we work and our expectations of the office. Over a period of time, Gensler surveyed 2,000 U.S. workers as they were returning to the office to understand the new role of the office, what’s working and not, and what’s missing in the work experience.

Originally published on February 16, 2023, by NAIOP.

From pricing to building codes to zoning and beyond, developers embarking on an adaptive reuse project must consider key factors that can make or break its success.