We're back with our popular "Two for Tuesday PLUS" edition providing education for you about relevant issues. Here's our list of things YOU should know about:
PLEASE NOTE: The City’ s submittal portal Accela Citizen Access (ACA) will be “under construction” on Thursday, June 1st thru Sunday, June 4th. ACA will re-open on Monday, June 5th. CLT Development Center
Rob Nanfelt, Executive Director of REBIC, take: Anything that can be done to smooth out the process and provide more certainty is a positive. We appreciate staff taking the initiative on this. The additional reviews that will come with the new stormwater and tree requirements will be where some delays are inevitable - probably as much as 5 to 7 business days. It will take some time to get this right.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!
Community Area Planning (CAP) started its spring workshops on March 28th with the West Middle geography. Workshops will be held in 14 geographies throughout the city. Each area will have a virtual, evening, and weekend workshop option. Spring/Fall workshops are part of the two-year CAP project, and the next step in implementing the Charlotte Future 2040 Comprehensive Plan. Community Area Planning builds upon the vision and goals in the Comprehensive Plan. It provides more detailed guidance for development, infrastructure, transportation, and other quality-of-life factors for each part of the city.
Not sure which workshop to attend?
Ready to register?
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.
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:
The City of Charlotte UDO team is hosting two online (Zoom) informational sessions on Tuesday, April 11, 2023, to provide information about four proposed text amendments that have been filed. If approved, these text amendments will be in place when the UDO and amended Tree Ordinance go into effect on June 1, 2023. They are:
The first session is scheduled from 12:00 noon to 1:30 p.m., and there will also be an evening session from 6:00 p.m. to 7:30 p.m. The same presentation will be made at both sessions, so you may choose the time that is most convenient for you.
Advance registration is required. Please use the following link to register for one of these sessions.
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.
On Monday, November 7th, the Charlotte City Council held a marathon day of meetings. Two of the committees held discussions on topics of significant interest to the real estate industry. To catch up on anything you may have missed, please click on the information links below:
Transportation, Planning, and Development Committee - Agenda, Video
(Presentations)
Housing, Safety, and Community Committee - Agenda, Video
(Presentations)
Numerous vacancies remain on several Charlotte City Council-appointed Boards and Commissions.
On Nov. 8, Gastonia residents will vote on a $75 million Transportation General Obligation Bond Referendum. The City Council approved the bond referendum at its Aug. 2 meeting.
Proposed projects include:
For more information, visit this link.
Charlotte voters will also have the opportunity to vote on a $226 million bond package that will upgrade and enhance streets, build housing for low-to moderate-income individuals and families, and improve infrastructure in the city's older neighborhoods and emerging high-growth areas.
Two and a half years after the pandemic began, the short-term future for the office sector remains uncertain, with record vacancy rates adding to the industry’s woes, according to a recent office report from CommericalEdge. And as hybrid and work-from-home business models continue to take hold — and rising inflation rates further deter workers from returning to traditional office settings — the sector’s long-term prospects are also murky.
The average full-service equivalent listing rate in the top 50 U.S. office markets was $37.58 per square foot in June — up two cents from the previous month, but down 2.6% from the previous year.
With a 15.6% gain year-over-year (Y-o-Y), Charlotte, North Carolina, continued to lead the market in price growth, increasing its average full-service equivalent listing fee to $33.45 per square foot. Prices in this market grew at progressively faster rates for the fourth straight month.
Similarly, Miami office space ($47.23/square foot) had a gain of 8.4% over the previous year and continued to be one of the fastest-appreciating office markets. But Boston still outperformed it with a 12% increase, thanks to the city’s thriving life sciences industry.
Last week, the U.S. Senate passed the Inflation Reduction Act of 2022, a $740 billion budget reconciliation measure with provisions to address climate change and energy security, extend federal healthcare subsidies, and allow Medicare to negotiate prescription drug prices. As we informed you last week, the bill, which had been negotiated by Senate Majority Leader Charles Schumer (D-NY) and Senator Joe Manchin (D-WV), contained a proposal changing the taxation of carried interests that would have harmed the commercial real estate industry and real estate entrepreneurs.
When the Schumer-Manchin agreement was announced, NAIOP and NAIOP Arizona, along with our national real estate allies, mobilized to support Senator Kyrsten Sinema (D-AZ) in her efforts to oppose the proposed changes to carried interest. In order to ensure her vote, the proposal was dropped from the bill before the legislation was brought up for floor debate.
We are gratified that the concerns of NAIOP and the real estate industry were considered on this very important issue. For more than a decade, NAIOP has successfully opposed various proposals to alter the tax treatment of carried interests, or “promotes” as they are known in real estate. While characterized in the media as affecting Wall Street hedge fund managers, these tax increases would have had a much broader economic impact, impacting real estate partnerships, the venture capital industry and others. We have been engaged with policymakers long before this latest proposal was introduced, and our members’ support has been extremely helpful.
Senator Sinema promised to continue working with Senator Mark Warner (D-VA) to develop legislation reforming carried interest taxation. I want to assure every NAIOP member that, on this and the other important issues affecting commercial real estate, we and our NAIOP chapters will continue our strong advocacy on behalf of you and our industry.
Last week, NAIOP members met with City Council Candidates Dimple Ajmera and Marjorie Molina to discuss important issues impacting Charlotte’s CRE industry.
The Lunch with a Leader series provides NAIOP Charlotte members an exclusive opportunity to meet and interact with key leaders in our community. Look for upcoming NAIOP Charlotte fall events here.
Compiled from REBIC, staff reports
REBIC’s Rob Nanfelt reported Tuesday that the City’s Planning Committee is taking up the matter of the proposed Unified Development Ordinance. Next month, committee members will take any additional recommendations before the third/final draft.
Last week, the Charlotte City Council received comments from the community during a public hearing on the proposed UDO. Click here to view the resolution. The entire hearing is available to view here – beginning approximately at the 2:51:30 mark.
Next is a review and recommendation from the City’s Planning Committee scheduled to begin Tuesday, July 19, at 5 p.m. Those interested can view it on the City’s Planning Department YouTube Channel. The complete agenda and meeting packet is available here.
REBIC's Rob Nenfelt and his team put together this week's Two For Tuesday and UDO takes center stage early next week.
The Charlotte City Council has scheduled a public hearing on the proposed Unified Development Ordinance (UDO) for Monday, July 11. The Council Action Review begins at 5:00 pm followed by the Public Forum/Business meeting at 6:30 pm. An agenda should be available here by Friday afternoon. Click here to sign up to speak.
Also, Planning Staff has just released responses to public comments submitted prior to last Thursday's deadline. Additional changes will be reflected in the next and likely final draft when it is released which will occur prior to the expected vote on adoption in late August. Here's a link to the page containing the Second Draft Public Comments - With Staff Responses.
For additional UDO resources, please visit Charlotte's Unified Development Ordinance (UDO) - (charlotteudo.org).
June 23, 2022: More than 100 commercial real estate professionals registered to hear a panel of local industry professionals share their feedback on the latest draft of Charlotte’s Unified Development Ordinance (UDO). Roger Manley (BB+M Architecture), Jon Morris (Beacon Partners), Tim Sittema (Crosland Southeast) and moderator Rob Nanfelt (REBIC) discussed their participation and impacts the new ordinance will have on the future of commercial real estate development.
Some of the highlights included:
Affordability after the UDO's implementation. Yes, development and housing costs will go up. But the new draft should offer more flexibility.
Do you have questions about all the development you see in CLT? Do you want to know more about how CLT plans for its future? Are you interested in influencing the future of your neighborhood?
The 2040 Planning Academy, formerly the Community Planning Academy, is a free 5-class program aimed at helping residents better understand the role planning plays in building communities. Through group discussions, presentations, and interactive activities, participants will learn when and how they can be involved in planning processes and help influence the future of their community.
The application window is open starting today, Tuesday, June 21, 2022, and will close on Sunday, July 17, 2022, at midnight.
Members from NAIOP’s three chapters in North Carolina traveled to Raleigh last week to advance the priorities of the commercial real estate development industry in meetings with state lawmakers. The top priority for NAIOP of North Carolina, the state alliance of NAIOP chapters, is the passage and enactment of House Bill 291, permit reform legislation sponsored by State Representative Jeff Zenger.
Local building permits are an essential and fundamental requirement for the development and improvement of commercial and residential properties. However, the processes for obtaining these permits can vary by city and county in North Carolina. These variations lead to uncertainties and delays in projects moving forward, which can impact the costs, financing and contractional relationships with contractors and providers of construction equipment and materials.
The enactment of House Bill 291 would bring reforms to the permitting process similar to those advocated by our local chapter in Georgia which were ultimately enacted into law in that state. These reforms to the local permitting process bring more predictability and accountability, reducing uncertainty and unnecessary delays. Core elements of the bill include:
The North Carolina House of Representatives passed House Bill 291 in May of 2021 on bipartisan vote of 79-33, sending the bill to the state Senate. The legislation was eventually sent to the commerce and insurance committee in March for their consideration. Our meetings last week focused on urging Senate leadership and the committee chairs to move this important legislation forward before adjourning for the year as early as the end of June. NAIOP of North Carolina’s advocacy played a key role in HB 291 being scheduled the following day for a hearing before the insurance committee the subsequent week.