Originally published on August 24, 2024, by Veronica Grecu for NAIOP.

In 2023, the trend of transforming buildings into apartments saw a significant revival, nearing the peak levels of 2019 and 2020, as developers responded swiftly to the increased demand for housing after a two-year slowdown.

This resurgence resulted in 12,713 new apartments, marking a substantial 17.6% increase from the previous year. The momentum for adaptive reuse is expected to continue, with an estimated 151,000 rental apartments currently being converted, including 58,000 from former office spaces.

While office spaces are popular for future projects, hotel conversions dominated last year’s adaptive reuse landscape: A record 4,556 apartments emerged from repurposed hotels in 2023 alone, a 38.8% increase from the previous year and nearly double the output in 2021. This surge in hotel conversions is the most significant since 2016, with 3,061 apartments created.

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September 10 | 4:30PM - 7:30PM | The Hamilton

Join CREW Charlotte for its Alphabet Soup Networking event. Come network with colleagues from all of the local CRE Organizations!

This year we will have karaoke again so be ready to sing! Hear from some of the CREW Charlotte Board and other members and guests! Don’t worry, it is not required and is in a separate space so you only participate if you want to!

Appetizers and two drink tickets included (good for non-alcoholic beverages, beer, wine, or use 2 tickets for a mixed drink)

$95 per ticket if purchased before August 20th, $115 after August 20th

Originally published on August 13, 2024 by Brielle Scott for NAIOP.

From John Oliver to CNN to the Wall Street Journal, everyone seems to be talking about PFAS. PFAS (per- and polyfluoroalkyl substances) are a family of manmade chemicals that have been used in manufacturing everything from apparel to cosmetics to food packaging.

In April, the federal government issued the first enforceable national PFAS regulations, and rather than just a problem for manufacturers of products with PFAS, this is now an immediate issue for owners and developers of all types of commercial real estate, and anywhere where PFAS may have been created or used.

In a recent NAIOP webinar, experts from Arnall Golden Gregory LLP, including Beth Davis, partner, and co-chair of the firm’s environmental practice; Morgan Harrison, litigation partner; and David Marmins, litigation partner; joined Patrick McKeown, business development manager for ECT2, a provider of solutions for removing difficult-to-treat contaminants from water and vapor, to discuss how developers can prepare for PFAS regulations.

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We are proud to introduce our new association members! The following is a list of individuals who have joined NAIOP Charlotte since April 2024:

• Kailan Boston, eXp Commercial
• Thomas Brafford, Patterson Pope Inc
• Garrott Braswell, Avison Young
• Noah Carper, Suddath Relocation & Logistics
• Margaret Doolin, Barings
• Andy Eades, Patriot Surveying & Infrastructure PLLC
• Keely Edwards, Ratzlaff Construction Company, LLC
• Jewell Gentry, Avison Young
• Will Grant, Ascent Construction Group
• Grandin Howell, DAVENPORT
• Geoffrey Lewis, GEL Engineering, LLC
• Chad Melberg, Gable Company
• Trent Michels, FuND
• Brian Mountcastle, L.F. Jennings General Contractor
• Sean Pardy, Terracon Consultants, Inc
• Zach Spencer, The Bainbridge Companies
• James Thompson, Dogwood Industrial Properties
• Paul Viverette, Multivista
• Tyler Windham, USI Insurance Services
• Adam Winters, ARCO Design/Build, Inc.

Originally published on August 7, 2024, by Eric Schmutz for NAIOP.

In June the U.S. Department of Energy (DOE) released the National Definition of a Zero Emissions Building (ZEB). This definition is the result of DOE and White House listening sessions held over the past year to obtain stakeholder concerns and feedback. 

Under the national definition, a building that achieves zero operational emissions from energy use must be, at a minimum:

• Energy efficient.
• Free of on-site emissions from energy use.
• Powered solely by clean energy.

DOE states that the new ZEB definition is not a regulatory standard or certification; the definition should be used as a guidance that public and private entities may adopt to determine whether a building has zero emissions from operational energy use. The definition has been developed to apply to existing buildings and new commercial and residential structures construction. Operational emissions are based on the whole building’s energy use, including emissions from tenants, and do not include carbon offsets.

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Laura Boorman Truesdale
Mary Katherine H. Stukes
Moore & Van Allen

Early preview of the article to be featured in the NAIOP Development Magazine this fall.

If you have read the news lately, you have likely heard about “forever chemicals” and the dangers they may pose. While you might be familiar with the potential impacts on human health and the environment, the implications of these chemicals on the commercial real estate industry may be less obvious.

The term “forever chemicals” refers generally to per- and poly-fluoroalkyl substances, also known as “PFAS.” PFAS are man-made and have been manufactured in the United States for over 70 years. They are used in a wide array of consumer and commercial products and processes across industry sectors and have achieved popularity and success in large part because of their unique resilience to degradation. While the chemical makeup of PFAS has made them critical to certain industries, it has also allowed them to persist widely in the environment (and potentially in humans and animals).

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The mission of the Real Estate & Building Industry Coalition (REBIC) is to catalyze positive outcomes for those working to create a healthy real estate market in the Charlotte region by using our voices to advocate, educate, connect, and advise. Subscribe to REBIC’s Two for Tuesday: quick reads and upcoming events in the region.

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For several years now there has been an ongoing dialogue among government leaders about how best to meet our transportation and mobility challenges within Mecklenburg County and throughout the region.  Last Friday an initial agreement was reached, and the following statement was issued to the media:

The Managers of Mecklenburg County, the City of Charlotte, and a majority of the six towns included within the County have successfully concluded meetings leading to the preparation of draft legislation enabling a countywide referendum on a one-percent local sales tax to fund mobility initiatives countywide, and the ability to establish a regional transit Authority.  

Elected officials for each jurisdiction will now consider this draft legislation and after review will be asked to pass resolutions supporting its advancement to the North Carolina General Assembly.  If approved, the request will be formally submitted to the North Carolina General Assembly where local government, business, and community leaders hope to gain adoption of enabling legislation to allow the voters of Mecklenburg County to determine their transportation future by making a choice for increased regional transportation infrastructure investments for both roads and transit.  

If the referendum is authorized, local leaders will engage the broader community about how previous mobility plans, including those for expansion of our public transit network, may be modified to match available resources and support the continued growth our region is experiencing.  That process will be essential to winning broad public support for the mobility plan.  This is a vital step toward meeting our region’s numerous mobility needs over the coming decades.

Iredell County Commissioners recently directed staff to initiate a text amendment to its land development code that would have, among other things, limited density to one unit per five-acre parcel in some parts of the county.  The measure was drafted and presented to the Iredell County Planning Board during last week's meeting where it was considered and debated.  Some board members expressed concern about the adverse impact this amendment could have on housing affordability.  Ultimately, it was determined the proposal necessitated additional discussion and it was tabled for the time being.  We will continue to weigh in as the measure receives future consideration.   

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Originally published on July 17, 2024 by Aquiles Suarez for NAIOP.

Just prior to leaving for this week’s congressional recess, and before the tragic events of this weekend which unfortunately served to highlight our current political polarization, Republicans and Democrats in Congress worked together to introduce bipartisan legislation furthering one of NAIOP’s top legislative priorities. The Revitalizing Downtowns and Main Streets Act (H.R. 9002) was introduced last Thursday with 12 original cosponsors: six Republicans and six Democrats, all members of the tax-writing House Ways and Means Committee.

H.R. 9002 would incentivize the conversion of underutilized commercial properties to residential use, helping to address the historically high office vacancy levels resulting from hybrid work patterns that arose during the COVID-19 pandemic and which have become a persistent feature of our labor markets. At the same time, the adaptive reuse of these structures would help alleviate the lack of housing supply, including of affordable housing, in many localities. The welcome show of bipartisanship underscores the importance of the issue, which NAIOP has made a priority since last year.

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Originally published on July 10, 2024, by Aquiles Suarez for NAIOP.

The Supreme Court has certainly garnered its share of attention for several of its rulings this last term, but none is likely to have more of an impact on business, including commercial real estate, than its opinion in Loper Bright Enterprises v. Raimondo, issued on June 28. In that case, the Court overturned a 40-year legal standard it had first established in 1984 in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., which stated that courts would defer to federal agency determinations on policy matters if the relevant statutory language was ambiguous.

The so-called “Chevron doctrine,” or “Chevron deference,” as the practice became known, began initially as a practical means of allowing federal regulatory agencies tasked with implementing aspects of legislation that called for scientific or highly technical determinations. It came into play when an agency determined that an area or matter not explicitly authorized in a statute was within the reach of their regulatory authority, as long as their determination was reasonable. Thus, if Congress passed a law requiring the Environmental Protection Agency (EPA) to regulate a certain broad class of chemicals, then the EPA could not be challenged for including substances that the agency stated it reasonably believed were covered by the statute.

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Originally published on July 16, 2024, by Alexandra Both for NAIOP.

The popularity of new homes built for the purpose of renting is peaking. Two drivers behind this boom are the rise of remote work and millennials reaching prime homebuying age while facing challenges in purchasing property.

But which areas have contributed the most to this growth? To answer this question, and to map out the future of this niche market, RentCafe.com analyzed Yardi Matrix data on single-family homes for rent in professionally managed communities.

In 2023, a record-breaking 27,500 build-to-rent homes opened their doors, up 75% compared to the year prior. Lifestyle changes in the aftermath of the COVID-19 pandemic led to new peaks each year, culminating this past year.

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Originally published on June 27, 2024, by Jennifer Lefurgy, Ph.D. for NAIOP.

If an average person’s work hours were aggregated at the end of their career, it would total approximately 13 continuous years. Work consumes so much time and energy that if it doesn’t go well, it can become a psychological drain that impacts employee productivity and engagement. Numerous studies have shown that mental well-being at work is on the decline.

Has remote work hurt employees and is it time to return to the workplace to boost social connections, receive in-person mentoring and reduce isolation? The answer may be yes, but there is also a need for employers to create supportive and well-managed workplaces.

Gallup’s annual State of the Global Workplace report found that just over half of employees in North America are not engaged (51%), meaning they are uninspired by their work and do the bare minimum, and 16% are actively disengaged and seeking a new employer. According to the survey, employee disengagement accounts for $8.9 trillion in lost productivity worldwide.

Originally published on July 24, 2024, by Ethan Harris for NAIOP.

From design/build condos to built-to-suit warehouses, one factor remains the highest priority regardless of the project type: the approach to upholding the highest level of safety. Although safety exists as a core value across all areas of the construction industry, the increased risk of serious injuries or fatalities persists. Construction workers are ranked number four on the United States Bureau of Labor Statistics list of occupations with the most fatality rates.

Considering this heightened risk, it’s important for every team member, from subcontractors to superintendents, to take responsibility for safety compliance, empowering others to take responsibility for not only their own actions but the actions of those around them. To help enhance safety efforts for the project from start to finish, safety leaders are focusing on ways to implement safety standards within each component of the building’s design. Although this approach requires comprehensive planning and strategizing on the front end, it is intended to reduce and mitigate hazards before they become issues. Keeping this idea in mind, the following are a few actionable methods for managing projects designed around safety compliance.

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Originally published on July 29, 2024, by Malaika Rivers for NAIOP,

How many different commercial areas in your market are in transition? Maybe a professional or minor league sports team is considering a new mixed-use development, or an industrial area is attracting a growing residential community. On the flip side, perhaps the nearby office campus sits partially empty, or the local mall cannot attract shoppers the way it once had. These changes are familiar market landscapes to commercial real estate professionals, but they may not be as familiar with the tools to help maneuver these transitions.

One such tool can channel the voices and dollars of commercial real estate owners to great effect. Known as special purpose districts, special service districts, or a host of other names, special districts harness resources that benefit a variety of commercial centers.

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The Charlotte Future 2040 Team is pleased to announce the release of the Annual Report Mid-Year Highlight video. This video showcases stories from their partners about progress toward implementing the Charlotte Future 2040 Comprehensive Plan. It serves to honor the hard work being done by various city and county departments.

The Mid-Year Highlight offers a snapshot of select projects and programs being implemented by their partners. Additional projects and programs will be featured in the upcoming Charlotte Future 2040 Annual Report. For more comprehensive information on the Annual Report, interested parties can visit the official website.

Viewers are encouraged to watch the Mid-Year Highlight video to learn more about how the City of Charlotte is honoring the vision for their beloved city and advancing the goals of the Charlotte Future 2040 Plan. The video can be accessed via a button provided in the original communication.

Watch Mid-Year Highlight VIdeo

The Town of Matthews has initiated an effort to curb Short Term Rentals (STRs) through the introduction of a text amendment to its Unified Development Ordinance (UDO).  Text Amendment 2024-2 does the following:

• STRs would be required to be separated from each other by a minimum of 800 feet, measured from property lines.
• They would be required to have a zoning permit and the permit would need to be posted publicly.
• Renters would not be allowed to hold special events or gatherings.
• A local manager or operator would be required to be located in or adjacent to Mecklenburg County.

During recent Commissioner meetings, several residents spoke in favor of imposing these restrictions but based on information provided by the Town, it is unclear how significant a concern this is to the vast majority of the population.  A review of the minutes of recent meetings indicates there have been a total of ten calls to the police related to STRs during the past three and a half years.  Of those, five were initiated by the STR owners and the other five came from area homeowners.  According to Town Staff, there are currently somewhere between 20 and 40 STR properties located within the Town of Matthews where the current population stands at over 30,000.

The public hearing on the text amendment began last night and has been extended to August 12th (STR conversation runs from 2:50:36 through 4:51:40).  Look for more updates and opportunities for engagement on this topic very shortly.    

On July 1st, 2024, the City of Gastonia ended public bus operations for its residents and initiated the GoGastonia Microtransit service.  This came about when the Gastonia City Council approved a 36-month contract with River North Transit, LLC to provide on-demand transit services to riders, who currently complete approximately 144,000 trips annually.  This new delivery system will not displace ADA transportation services.

The City also determined that on-demand microtransit would better address its limited-service area, alleviate hour-long wait times, eliminate an aging fleet of buses, and provide better access to the majority of its users.  In the past fiscal year, Gastonia Transit had been operating six fixed bus routes covering nearly 295,000 miles per year while providing service to over 144,000 passengers.  The previous system was averaging only seven passengers per vehicle hour across all routes.

Want to learn more?  Tomorrow, July 17th from 10:00 am to 12:00 pm at the Gastonia Career Center, 116 Armstrong Street, Gastonia, NC 28054, the City of Gastonia will be holding several information sessions about the new service. 

RSVP Here 

A bill that NAIOP and its members spearheaded was introduced today in the U.S. House of Representatives. The “Revitalizing Downtowns and Main Streets Act” establishes a new 20% tax credit to convert many underutilized or vacant commercial properties to residential use.

The bipartisan bill is sponsored by U.S. Representatives Mike Carey (R-OH) and Jimmy Gomez (D-CA).

“This legislation will spur the conversion of vacant spaces that can stimulate local economies and begin to address the housing crisis in communities across the U.S.,” said Marc Selvitelli, CAE, president and CEO of NAIOP. “This important bill allows Congress to begin rectifying many of the ripple effects of the COVID-19 pandemic that are still affecting the lives of Americans and impacting local tax revenues.”

The proposed legislation includes: