Originally published on August 3, 2021, for NAIOP E-Newsletter.
The bipartisan group of senators negotiating infrastructure legislation finalized legislative text over the weekend and officially introduced the measure Sunday night. Senate Majority Leader Chuck Schumer (D-NY) has stated he plans to hold a vote on the bill later this week.
Originally published on July 27, 2021, by Ester Fung for the Wall Street Journal.
U.S. commercial real-estate sales this year have rebounded to pre-pandemic levels, fueled by historically low-interest rates and the belief of many investors that the worst of Covid-19 is over.
Originally published on July 29, 2021, by Sheheryar Hafeez for the NAIOP E-Newsletter.
Real estate investment trust (REIT) merger and acquisition activity has emerged from the pandemic in full force with some $75 billion in investment nationally from January through mid-July 2021. This robust activity is expected to continue throughout what could potentially be a record-breaking year. While all 11 Global Industry Classification Standard sectors are in positive territory for the year, real estate ranks second highest with a strong 27% performance, just slightly below energy.
Originally published on July 21, 2021, for NAIOP E-Newsletter.
Owners and developers of commercial real estate recognize that obtaining local building permits is an essential and fundamental requirement for the development and improvement of their properties. The processes for obtaining these permits vary by municipality and state. These variations lead to uncertainties and delays in projects moving forward, which impacts the development project’s financing, cost and the retention of contractors, construction equipment and other materials.
Originally published on July 23, 2021, by Roger McCarron for NAIOP E-Newsletter.
The COVID-19 pandemic, and the waves of lockdowns and business interruptions it prompted, affected global supply chains in virtually every industry — and construction is no exception. Due to widespread shortages of building materials, and pent-up demand from projects that were delayed or postponed during the pandemic, costs for materials including lumber, copper, steel, aluminum and vinyl skyrocketed. According to the National Association of Homebuilders, lumber prices spiked to a more than 300% year-over-year increase in May. While prices have since come down, they remain higher than historical averages and data suggest that demand for construction materials is approaching pre-pandemic levels.
Originally published on July 27, 2021, for NAIOP E-Newsletter.
Republican and Democratic Senators negotiating infrastructure legislation signaled they were close to a final deal, with lead negotiator Rob Portman (R-OH) saying they were “90% of the way there.” The coming days are critical after Senate Majority Leader Chuck Schumer (D-NY) forced a procedural vote last week on moving a bill forward despite there being no legislative language available. The vote failed to garner the 60 votes needed for passage of the procedural motion, with the lead negotiators arguing they hoped to have any remaining issues resolved and legislative text drafted this week.
Originally published by Wendy King for NAIOP's Summer 2021 Issue.
As COVID-19 vaccines continue to roll out, and with the possibility of booster shots for variants as fall approaches, many commercial and residential property management companies, as well as sales and leasing brokerages, are considering how to deal with vaccinations within their workplaces.
NAIOP Charlotte & CRCBR are hosting their always sold-out industry golf tournament on Monday, September 27!
Get your company name in front of developers and brokers and catch up with your industry peers. For one price, your company will be recognized as a sponsor during this two-flight tournament! Make plans to join us as a sponsor for this fun and valuable event!
Sponsorship opportunities are available on a first-come, first-served basis.
At this time, player spots are only available through sponsorship of the tournament.
Originally published on June 29, 2021, by Zach Bowyer, Brian Chandler and Bryan Lockard for NAIOP E-Newsletter.
The COVID-19 pandemic interrupted a nearly 12-year growth cycle for the senior housing market, causing a drop in valuations to an eight-year low. Stabilized occupancy rates also fell to record lows due to infections, mandated holds on new resident admissions, safety concerns, and isolation fears. Rents, however, continued to rise, despite significant occupancy losses.
Originally published by Daniel Castner, Brian Spence and Trevor Boz for NAIOP's Summer 2021 Issue.
The scientific research market has grown substantially over the past 10 years. With a global pandemic top of mind, investors are looking at the life science industry now more than ever.
Originally published on July 2, 2021, by Ioana Ginsac for NAIOP E-Newsletter.
Last week, commercial real estate property data and listings platform CommercialEdge published its most recent national office report, which paints a more current picture of office sector activity across the top 50 U.S. markets. Data analyzed for the June 2021 report found that:
Originally published on July 9, 2021 by Shawn Moura Ph.D. for NAIOP E-Newsletter.
In June, NAIOP conducted its eighth survey of its U.S. members on the impacts of COVID-19. Since April 2020, the association has examined the pandemic’s effects on commercial real estate and how firms have responded. Most American adults are vaccinated, and daily coronavirus case counts have plummeted in the five months since the previous survey. This has allowed a widespread return of customers to restaurants and retailers, and most observers now expect that office occupancy rates will rebound in the fall when schools re-open for in-person instruction.
Originally published on July 7, 2021, by Toby Burke for NAIOP's blog.
NAIOP of North Carolina recently hosted the first in-person Day at the State Capitol since the outbreak of the pandemic. It provided NAIOP members from the Charlotte, North Carolina Piedmont Triad, and Raleigh-Durham chapters with the opportunity to advocate for effective policies that advance commercial real estate development within the state. This year’s legislative priorities focused on three areas: economic development, tax reform, and regulatory reform.
Originally published on July 13, 2021, for the NAIOP E-Newsletter.
The Senate returns this week from its July Fourth recess to continue work on an infrastructure package supported by President Joe Biden and a bipartisan group of 22 senators, which the White House hopes will garner the needed 60 votes in the Senate needed for passage. At the same time, House and Senate Democrats are working on a parallel track to develop a budget bill that will include Democratic leadership priorities and that can pass the Senate with only Democratic votes.
We are proud to introduce our new association members! The following is a list of individuals who have joined NAIOP Charlotte since March 12, 2021:
Originally published on June 22, 2021 by Andy Halik for NAIOP E-Newsletter.
With U.S. coronavirus cases plunging and knowledge workers craving the social component of the workplace, many companies across the country are fully reopening their offices to employees. Some companies took the opportunity to renovate or update their workspace during the lockdown periods of the pandemic, and others are planning significant design changes to prepare for the next era of the office.
Originally published on June 29, 2021 for NAIOP E-Newsletter.
Last week President Joe Biden announced agreement with a bipartisan group of senators, led by Kyrsten Sinema (D-AZ) and Rob Portman (R-OH), on a bipartisan infrastructure plan. The infrastructure deal would total $1.2 trillion over eight years, with approximately $579 billion in physical infrastructure, including roads, bridges, transit, water and sewer projects, and upgrades to the electrical grid. However, the nascent deal almost unraveled when Biden, in an effort to appease Democratic progressives, promised not to sign the legislation unless it was simultaneously accompanied by a reconciliation bill incorporating elements of his other domestic spending priorities.
Originally published by Ron Derven for NAIOP's Development Magazine Summer 2021 Issue.
COVID-19 delivered a gut punch like no other to the commercial real estate industry last year, with transactions in the second quarter of 2020 plummeting approximately 40% over the same period in 2019.
Originally published on June 21, 2021 by Marc Rapport for MillionAcres.com.
The pandemic recovery in the office sector is underway and is projected to reach positive net absorption in the fourth quarter of this year, according to research from NAIOP, the Commercial Real Estate Development Association.
Originally published on May 2021 by Hany Guirguis, Ph.D., Manhattan College and Michael J. Seiler, DBA, William & Mary and the University of Cambridge.
The U.S. economy is experiencing a strong rebound from the COVID-19-induced recession, resulting in job growth in office-using sectors. However, tenant-safety concerns remain a drag on office leasing. The U.S. office market posted continued declines in net absorption in the fourth quarter of 2020 (-26.7 million square feet) and the first quarter of 2021 (-34.8 million square feet). Nonetheless, as coronavirus safety concerns abate and the economy continues to expand, negative net absorption is forecast to moderate over the next two quarters, with a return to positive absorption in the fourth quarter of this year (Figure 1). Quarterly net absorption in 2022 is expected to average 11.7 million square feet, in line with the 2015-2019 quarterly average of 11.6 million square feet.
