Jun
08
During April 17, 2020, NAIOP Charlotte Board Meeting, the following market perspectives were offered from board members:
- Construction continues to proceed. Seeing smaller work crews on-site, but not slowing progress. Not seeing material issues at this time. New deals, if capitalized, are moving forward.
- Developer and investors are hoping construction pricing to decrease as much as 20% but the construction industry is saying maybe 2%.
- Seeing construction lending delayed by 30‐60 days due to banks focusing on PPP.
- Big picture – Charlotte is still looking good to pull out of this when the time is right.
- “Uneven” based on product type and where a project is in the process.
- Retail is brutal. The only tenants that haven’t requested rent relief are grocery stores, drug stores, and quick-serve restaurants. Each answer is different. We need to look at the space and how we continue to provide a new experience in the retail of the future.
- After this, we will have a greater realization that we create community – not sure brick and mortar retail will be dead.
- On Monday (4/20), City will hold their first virtual rezoning meeting which will include public input through council members, chat, speaking upon appointment. No decline in zoning or permitting applications.
- C‐4 is a new coalition of general contractors on a call twice a week with city and county (maybe 80 people on each call). As a group, developed best practices for a safe environment.
- Many hotel owners are closing their location or 5‐15% occupancy.
- Not seeing distressed sales yet.
- In corporate America, how well offices adjust for future remote working? They are seeing some indications of 10% of remote workers to 30% remote workers. Corporations looking at hoteling and new design features. Will the old‐fashioned suburban office park may come back? New projects, looking at touchless entry for security and door entry.
- WELL program – thinks that may have a good opportunity for a future program.
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