Originally published on June 6, 2024, by Natalie Fidlow, CFA for NAIOP.

“Labor availability trumps labor costs as a top concern in the Eastern Pennsylvania and New Jersey markets,” said David Hickey, global managing director at Hickey Associates. He led experts in a dynamic discussion at I.CON East this week in Jersey City, New Jersey. They drilled down on the region’s data and provided strategies to navigate the tight talent market.

Originally published on May 23, 2024, by Chris Grant for NAIOP.

For many decades, the construction industry has played a vital role in reshaping communities, standing as a key indicator of economic performance and prosperity. In more recent years, labor challenges have shifted the industry’s progression, threatening to disrupt integral projects and new developments throughout the country. With issues such as a shortage of skilled laborers and the need for new technology and software, today’s general contractors are faced with many industry-specific challenges that require innovative strategies and effective planning to guarantee continued success.

The City of Concord will hold its next wastewater allocation meeting on Tuesday, June 25th at 11:00 am.  Here are additional details as well as the meeting packet (over 400 pages, may take a while to download).

The Compact Development provision proposed by Planning staff and discussed during a prior council and committee meeting, and ultimately approved by the Planning Commission's Zoning Committee was approved during last night's Charlotte City Council meeting.  This text amendment seeks to partially address the need for entry-level and workforce housing by allowing higher density developments in certain parts of the city.  Next up will be a summer discussion of strategies to increase the amount of allowable townhome developments.  We look forward to further engagement and are optimistic about the potential approval of another text amendment targeting this need this coming fall.

Our attention is also directed toward the City's Alignment Rezoning process that is already underway.  City staff is hosting webinars this evening at 6:00 pm, tomorrow during the lunch hour, and again on Thursday at 2:00 pm.  Please take time to register and participate in one of these informational sessions.

The City of Concord will hold its next wastewater allocation meeting on Tuesday, June 25th at 11:00 am.  Here are additional details as well as the meeting packet (over 400 pages, may take a while to download).

Please join us from 9:00 to 10:30 am on Wednesday, July 17th for an informational session about building code changes, ongoing technology transition efforts, and a status report about plan review and third-party inspections.  For more information, please email [email protected].

During the Charlotte City Council Zoning meeting, rezoning petition #2024-033 also known as "Clean-up Text Amendment #3" was unanimously approved.  Another item, rezoning petition #2024-067, the Compact Residential Development Text Amendment, to which we have provided significant input, also received a public hearing.  While this measure is not a perfect solution it does bridge the gap until additional text amendments can be drafted that allow for additional higher-density developments to meet attainable housing supply needs.  The full Council is expected to vote on this amendment during next Monday night's meeting.   

During last week's HBAGC Land Development Council meeting we had an opportunity to hear from Mooresville Mayor Chris Carney.  He spoke about the changes he's been making since taking the helm back in December.  During his remarks he also suggested our industry continue its engagement as the Town rewrites its comprehensive plan and UDO.  Check out Mooresville Tomorrow for additional information.  Spoiler alert:  check back soon to hear about these issues on our next podcast.

The NAIOP CRE Sentiment Index for April 2024 is 52, a rebound from the September 2023 reading of 46, indicating that respondents expect conditions for commercial real estate to improve over the next 12 months. 

• Mecklenburg County proposing development fee increases in FY 2025 Budget - In partnership with the HBAGC we are initiating meetings with key staff at Mecklenburg County to discuss the potential impact of these proposed fee increases.  Here is the Land Use and Environmental Services Agency (LUESA) presentation that was provided to the Mecklenburg County Board of Commissioners on April 23, 2024.

• Gastonia Looking for Feedback on Micro-Transit Fares - The City of Gastonia will host a public hearing on a fare increase at its regular City Council meeting which begins at 6 p.m. on May 7 and will be held at Gastonia’s City Hall, located at 181 S. South Street, Gastonia.  Additional information may be found here.

• Town of Waxhaw Proposed Land Reservation Text Amendment - The Town Board of Commissioners has introduced Text Amendment 14-2024 purportedly to address reserving future school sites but could have the impact of curbing growth in an already difficult building environment.

• Charlotte Tree Manual Updated - Links now available!  Redline Version, Clean Version

• U.S. Supreme Court Rules that Legislation Does Not Protect Improper Impact Fees - In a unanimous ruling, the court found that local impact fees must pass the rough proportionality test previously established in two landmark cases (Nollan v. California Coastal Commission and Dolan v. City of Tigard, Oregon) whether or not the fees were legislatively adopted or applied individually.  See more details from the National Association of Home Builders.

Dan Melvin, PE, serves as a Principal at LandDesign, where he oversees a team of consulting civil engineers specializing in land development projects of varying scales and complexities. With extensive experience in Charlotte, Dan possesses an in-depth understanding of the region’s infrastructure and regulatory challenges, enabling him to devise practical solutions tailored to his clients’ needs.

Dan’s ability to cultivate strong relationships with clients and regulatory authorities is key in advocating effectively for projects within the local development community. His involvement in public-private partnerships has provided him with valuable insights into the development process, enhancing his approach to project management and problem-solving.

Last night the Charlotte City Council voted to approve UDO text amendment 2024-043, effectively limiting the ability for builders to provide housing products to moderate income buyers.  We have reported regularly on this topic in recent weeks through other editions of our "2 for Tuesday."  This action has led to even greater uncertainty within the building community and will likely translate into higher housing prices, at least in the short term.  Staff is planning to file another measure that will serve as a substitute for the option that was widely utilized by the industry and effectively eliminated by Council.  This new text amendment will likely be filed on Thursday with a public hearing slated for mid-June and a Council vote on June 24th.  We are currently working with staff to ensure this is a viable tool and that it will assist our members in providing the housing types necessary to meet critical supply demands.

Tonight at 5:30 pm, the Charlotte Mecklenburg Planning Commission will take action on UDO text amendment 2024-043 aimed at curbing the use of Conservation Subdivisions for new development.  This action will be to either recommend approval or denial of the proposed amendment.  The meeting will be held in Room 267 of the Charlotte Mecklenburg Government Center, 600 East 4th Street, Charlotte, NC.  If you cannot attend in person, you can visit the City's YouTube page to follow the action.

Passage of the amendment will effectively eliminate the use of this provision and is one of three interrelated matters currently before the council:

1.  Conservation Subdivision Amendment - will result in less density and is currently scheduled for a May 20th council vote.
2.  Addressing the matter of Duplexes and Triplexes in existing neighborhoods - will result in less density, "Clean-up" Text Amendment 3 adds prescribed conditions to duplexes and triplexes in the N-1 zoning category (see page 15-2), the public hearing scheduled for May 20th.
3.  The creation of a Compact Development category (to replace conservation subdivisions) - could allow higher density developments under certain circumstances, still conceptual.

We are encouraging Members of the Charlotte City Council to take action on these provisions simultaneously so they may better consider the big picture as it relates to housing affordability.  

Originally published on April 29, 2024, by Jay Biggins for NAIOP.

In the wake of the coronavirus pandemic, many downtowns across the country remain disquietingly vacant. Office towers that once hummed with activity are a bit quieter, the hallways emptier. The U.S. has the highest office vacancy rates – 18.4% – since 1992. Some levels of hybrid and remote work are here to stay, and now the commercial real estate landscape faces some tough decisions, offering both challenges, which are clear, and unique opportunities, which are less well-defined but coming into focus.

Originally published on April 24, 2024 by Matthew Preston for NAIOP.

With many returning to offices, sustainable commuting options are back in the spotlight. With this in mind, a recent study from CommercialCafe explored which mid-sized U.S. cities (populations between 220,000 and 500,000) are leading the way in offering eco-friendly commutes. By focusing on this specific size range, the analysis provides insights beyond major metropolises and allows for more fair comparisons of green commuting practices.

North Carolina is the sixth highest-ranking state in the U.S. for overall contributions of commercial real estate to state GDP with $44.1 billion, $19.1 billion in direct spending, $16.7 billion in personal spending, and 312.1 million jobs supported in 2023 (the most recent data available).

• Industrial (includes manufacturing): North Carolina ranks #4
• Warehouse: North Carolina ranks #7
• Retail: North Carolina ranks #7

The data is from “Economic Impacts of Commercial Real Estate, 2024 U.S. Edition” published annually by the NAIOP Research Foundation.

Originally published on April 17, 2024, by Eric Schmutz for NAIOP.

With national and swing state polls indicating support between President Joe Biden and former President Donald Trump is fairly even, casual political observers could be forgiven for not realizing that House and Senate races are also tight; there could be a historic switch in the House and Senate majorities this November.