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.
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.
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.
Key Findings:
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.
Outside of LandDesign, Dan serves as the President of the NAIOP Charlotte Chapter, where he works to support the interests of commercial real estate developers and owners. He also serves as a development representative on the Charlotte Water Advisory Committee, providing insights and guidance on water infrastructure issues that influence both current and future developments.
Dan holds a degree from Florida State University and resides in Charlotte with his wife, Laura, and two sons, John and Charles.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:
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.
Where companies used to require space for virtually all their workers, hybrid work models mean fewer people in the office and, thus, less need for so much square footage. Now, all across the nation’s downtown areas, developers and owners are asking what the future of the “office” looks like. How do we utilize the space that’s available?
The biggest obstacles confront Class B and C office buildings, often in less desirable locations, lacking amenities and/or technology. These properties have the emptiest space, and many have no viable future as office space.
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.
To order to identify the leaders in green commuting, the study analyzed several key factors including public transportation ridership, walking and cycling rates, carpooling engagement, access to EV charging stations, and the promotion of pedestrian and cycling commuting with green amenities and attractive urban environments.
Read on to discover the top 30 cities and gain insights into the best performing examples of sustainable commuting in action.
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).
The data is from “Economic Impacts of Commercial Real Estate, 2024 U.S. Edition” published annually by the NAIOP Research Foundation.
Nationally, the impact of new commercial real estate development in the U.S. continues to grow.
The combined economic contributions of new commercial building development and the operations of existing commercial buildings in 2023 resulted in direct expenditures of $913.1 billion and the following impacts on the U.S. economy:
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.
In the Senate, where Democrats currently hold a two-seat majority at 51-49, Republicans are projected to pick up the West Virginia seat from retiring Democratic Senator Joe Manchin, which would make it a 50-50 Senate, with the next vice president casting the deciding vote. Adding to their challenges, two Democratic senators in states projected to go for Trump (Ohio and Montana) are likely to face serious challenges in their reelection efforts.
In Ohio, three-term Democratic Senator Sherrod Brown will face Republican businessman Bernie Moreno. Polls taken before the primary favored
Brown; however, Biden lost the state in 2020, and has trailed in state polling by more than 10 percentage points.
Originally published on April 18, 2024, by Anna Liza Montenegro for NAIOP.
Real estate development is an ever evolving and, at times, volatile business. Advanced technology can help to mitigate that volatility and improve processes in the construction and real estate industry. Building information modeling, or BIM, is one of the most powerful tools developers can use to reduce risk and ensure the profitability of their investments. BIM not only allows for better planning and project design, but also facilitates collaboration, communication, efficiency and ongoing asset management.
Building information modeling (BIM) is a type of 3D modeling software that can be used to facilitate collaboration on every aspect of a building project, from design to construction to ongoing maintenance. Unlike traditional 3D computer models, BIM images contain vast amounts of data. Each component of a BIM model contains information about costs, spatial relationships, materials and more. BIM can also simulate design changes and identify potential problems before they become reality. Through the power of cloud-based computing, BIM models can be accessed from virtually anywhere in real time, allowing for better collaboration and information sharing among project stakeholders.
Originally published on April 16, 2024, by NAIOP.
Charlotte member Sean McMullan has been selected as a NAIOP Research Foundation Visionary.
The Research Foundation established the Visionaries program in 2017 to connect outstanding rising industry professionals with Research Foundation Governors who are experienced, well-respected industry leaders. The 2024 cohort of Visionaries will be inducted at NAIOP’s National Forums Symposium, May 8-10, in Minneapolis.
Originally published on March 13, 2024, by Kathryn Atkins for NAIOP.
Although this year’s I.CON West conference is taking place in California, much of the due diligence session applies to the rest of the country. In all aspects of due diligence, the goal is the same: How do we get the project for our investors through the approval cycle with the least risk, time and expense?
In a panel session, four experts discussed slightly different aspects of due diligence practices (political; biological and resource; California Environmental Quality Act, if applicable; and site selection). Still, the take-home consensus was how properly executed due diligence can give the developer leverage with the growing number of naysayers in cities, counties and states across the United States.
How do commercial real estate leaders work through increasingly difficult objections to building and growth? Say it doesn’t cost money to mitigate the challenges to the project and each due diligence – it can still push the timeline and invite more “bounty hunters” (those seeking to derail the project and exact a gatekeeper fee for stepping aside). It’s not worth it to some folks, while others with a higher risk tolerance might be willing to forgo the due diligence. It’s a risk.
Originally published on April 3, 2024, by Aquiles Suarez for NAIOP.
On March 11, President Joe Biden submitted his FY 2025 Proposed Budget to Congress. Like the budget he proposed last year around this time, it contains a number of tax policy changes that, if enacted, would have an outsized negative impact on the commercial real estate industry. But unlike last year’s proposal, this is an election-year proposal intended as the administration’s statement on the economic agenda Biden will pursue if re-elected this November.
That does not mean, however, that this budget proposal should be seen as simply a rhetorical document with little chance in a Republican-controlled House of Representatives. Unlike prior year budget proposals, this one is a setup for an unavoidable tax debate in 2025, when many of the tax provisions enacted during the Trump administration in the Tax Cuts and Jobs Act of 2017 will expire. As a result, many lower and middle-income Americans, not just businesses, will face tax increases if Congress fails to renew a number of provisions. Democrats and Republicans will be forced to negotiate and pass tax legislation because both sides of the political aisle will need it.
If reelected, Biden will of course claim that the voters agree with his economic vision, and he will have enormous negotiating leverage in the tax debate because of the scheduled tax increases that will go into effect.
Originally published on March 25, 2024, by Brian Walker for NAIOP.
NAIOP’s Market Share blog sat down with 2024 NAIOP Chair Brian Walker to ask him about his career path, NAIOP experience, and vision for the association this year.
I can recall what it felt like to be a young CPA just starting my career. NAIOP and the Pittsburgh chapter were essential in connecting me with the knowledge, research, education and people I needed to launch my career. Our DLs comprise nearly 28% of our total membership, and they’re the future of our industry and association. I’m thrilled to have the opportunity to meet so many of our rising leaders this year and support their growth.
Pittsburgh has transformed from its roots as “the Steel City” into a vibrant hub for healthcare, education, technology, robotics, and financial services. Western Pennsylvania has been a strong annuity market for investment. Our real estate has always been built and priced right, with growth slow and steady. The offset is that the market is not growing rapidly, and we see lateral movement from old buildings to new.
Originally published on April 4, 2024, by Bob Boyer for NAIOP.
In the ever-changing world of construction, creative solutions are key to moving projects forward. In an industry where tradition can take precedence over innovation, it’s important for general contractors to regularly challenge the norm; doing so can uncover modern insights that reshape the way we build the communities where we live and work.
Technology exists at the root of all innovative breakthroughs, especially in the construction world. Although sometimes daunting to adopt, these new tools are positioned to help increase project efficiencies, save time and uncover cost-saving opportunities. Examples of these impactful technologies include Building Information Modeling (BIM), 3D printing, virtual and augmented reality, artificial intelligence and blockchain technology. As a forward-thinking general contractor looking to enhance existing processes and enter a new generation of productivity, leaders should consider implementing these tools into their daily practices to remain relevant and up to speed.
We are proud to introduce our new association members! The following is a list of individuals who have joined NAIOP Charlotte since January 1, 2024:
All four standing committees of the Charlotte City Council met yesterday. Here's a quick outline of what was covered with links to agendas and presentations.
Transportation, Planning, & Development
Planning Director Alyson Craig provided an update to the committee and referenced three text amendments that are currently working their way through the process:
