Filtered by category: Industry Clear Filter

Mary Katherine Stukes Named a Charlotte Business Journal Women in Business Honoree

Originally published on January 27, 2025, by Moore & Van Allen.

Mary Katherin StukesNAIOP Charlotte Member and Moore & Van Allen's Head of Environmental, Mary Katherine Stukes, was selected for the Charlotte Business Journal’s 2025 Women in Business Awards program.

This highly competitive program, now in its 29th year, celebrates 25 women impacting the Charlotte region through career accomplishments and community involvement. Honorees will be spotlighted in a forthcoming CBJ special report and formally recognized during an awards program on March 20.

Stukes was selected based on her firm and industry leadership, track record of success in brownfield redevelopment matters, and meaningful endeavors as co-chair of MVA’s Women of Moore & Van Allen (WoMVA) Business Resource Group.

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New Report: 2025 Economic Impacts of Commercial Real Estate

Originally published in January 2025 by Brian Lewandowski, Adam Illig, Ethan Street, and Richard Wobbekind, Ph.D. by the NAIOP Research Foundation.

The NAIOP Research Foundation has published the annual Economic Impacts of Commercial Real Estate, 2025 U.S. Edition, research study. The combined economic contributions of new commercial building development and the operations of existing commercial buildings in 2024 resulted in direct expenditures of $898.5 billion and the following impacts on the U.S. economy:

  • Contributed $2.5 trillion to U.S. GDP.
  • Generated $862.5 billion in personal earnings.
  • Supported a total of 14.2 million jobs.

Other highlights from the report:

  • Each $1 of construction spending generated a total value of $2.95 for the economy, reflecting the cumulative effects of the initial construction expenditures as they cycle.
  • The U.S. Census Bureau estimates that private data centers represented 28.7% of office construction value in 2024, an increase from 19.7% in 2023. This is the first year the organization has separated data center construction from financial and general office construction.
  • Industrial (manufacturing) and warehousing starts are down but still significantly above pre-pandemic levels. Much of the new online construction can be attributed to recent reshoring efforts in the U.S., including the CHIPS Act and Inflation Reduction Act.
  • Demand for retail space in 2024 remained strong and shifted toward smaller, more creative spaces. Successful retailers offered experiential shopping with a more personalized touch or other activities, such as dining, for consumers to engage in between shopping. While larger department stores struggled, retail as a whole proved resilient.
  • Some cities have experienced a larger recovery in office attendance than others. New York, for example, reached 82% utilization as of October 2024 and 91% for top-tier office buildings, indicative of a shift in demand to high-quality office properties. See data by State.
Download the Report

The Country’s Largest Urban Hot Spots Embrace Adaptive Reuse in Self-storage

Originally published on January 9, 2025, by Maria Gatea for NAIOP.

Self-storage construction has been on an upward trend since 2020 as the sector has become increasingly popular with American consumers, offering flexible solutions for life’s many transitions. While new construction has dominated the industry for decades, a significant shift is occurring: Existing industrial and retail buildings are being converted into self-storage facilities. This trend is optimizing urban real estate and meeting the growing demand for storage in densely populated areas.

Conversions account for 9% of the country’s self-storage inventory

Approximately 9% of the U.S.’s total self-storage inventory – nearly 191 million square feet – now consists of converted spaces, according to recent StorageCafe research. These conversions are spread across more than 2,300 facilities nationwide...

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CRE Outlook for 2025: Cautiously Optimistic

Originally published on January 6, 2025, by Ed Finkel for NAIOP.

The fortunes of the commercial real estate sector should be somewhere between status quo and modestly improved over the next year, with housing, industrial, data center, and advanced manufacturing among the most dynamic asset classes, according to a cross-section of developers and investors who sit on NAIOP’s board of directors.

Matt McInnis, partner at Front Street Capital in central North Carolina and a NAIOP North Carolina Piedmont Triad member, forecasts a mixed picture. “There are a lot of positive dynamics that are unfolding for us, but for every one of those, there’s something that’s going to constrain euphoric growth,” he said. “We see a lot of people finally in a head space where they’re willing to commit to a project. In 2024, there was a lot of looking. That’s started to change.”

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2025 Cornerstone Sponsorship Opportunities

2025 Cornerstone Sponsorship Info

2025 Cornerstone Sponsorship OpportunitiesNAIOP Charlotte has a strong and active membership comprised of commercial developers, owners, brokers, bankers, architects, engineers, attorneys, and title companies working to advance all commercial real estate sectors.

The Cornerstone Sponsorship supports and enriches the Charlotte Chapter while offering professionals and organizations an opportunity to build and strengthen relationships, increase brand visibility, attend key industry events, and have an active voice in Charlotte’s commercial real estate activities.

Cornerstone Sponsorship Program

2024 Annual Meeting Resource Information

On December 4, 2024, NAIOP Charlotte hosted the Annual Meeting: Navigating the Horizon in 2025. The panel peeked into the future of Charlotte's commercial real estate landscape as we explored the public policy shifts, legislative changes, and evolving business practices poised to shape the industry. Below are resources to dive deeper into the discussions.

ESG Reporting Requirements

A New Chapter in Life Sciences Real Estate

Originally published on December 16, 2024, by Daniel Maldonado for NAIOP.

As we approach the end of 2024, the life sciences space is undergoing a noteworthy transformation. After a sharp post-COVID-19 downturn for the sector, there is a significant revival in venture capital activity, strategic landlord adaptations, and evolving market dynamics on the horizon that may shape the future of life sciences real estate for the better.

Venture Capital’s Resurgence, Landlord Strategies

Recent trends indicate a notable rebound in life sciences venture capital after a decline in 2022. This has sparked optimism for increased deal activity and value creation compared to previous years. The sector’s resilience, particularly in biotechnology and healthcare advancements, is evident as major pharmaceutical firms and venture capital funds retain substantial reserves.

The renewed activity is not just a signal of confidence; it is expected to stimulate leasing activity and address the current oversupply of life sciences real estate, which has caused landlords to adopt innovative strategies to optimize their portfolios. Many are diversifying their tenant bases by leasing space within newly constructed life sciences projects to traditional office users.

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Major Changes Coming to Charlotte Regional Business Alliance

Originally published on December 11, 2024, by Erik Spanberg for Charlotte Business Journal

The Charlotte Regional Business Alliance has hired Tracy Dodson to fill the newly created Chief Operating Officer position. Dodson, who now runs the city of Charlotte’s economic development division, will also fill the lead economic development executive role at CLT Alliance. This position has been vacant for a year.

Dodson’s hiring comes amid more changes at CLT Alliance. The nonprofit continues to search for a permanent CEO after Janet LaBar stepped down last spring. Other changes include scaling back the size of the organization’s board, which will directly oversee the CEO, and eliminating the chief marketing and communications officer job.

While those moves and other tweaks are in the works, the search for a new CEO continues with consultant Thadd Jones and Charlotte-based headhunting firm Nexus Search Partners. Interim CEO Andrea Smith said the search is progressing and remains on track for a permanent CEO to be in place early in 2025. Smith has committed to remaining a strategic adviser after a full-time CEO is in place.

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Trends in Office Real Estate: Shared Amenities

Originally published on December 11, 2024, by Doug West for NAIOP.

In today’s office real estate market, flight to quality has created a race for landlords seeking to attract tenants and fill vacancies. While some tools are economical, like rent incentives, others are more concrete, including developing shared amenity spaces. In major metropolitan markets such as New York, an amenity offering is now a deal-breaking requirement rather than just nice. But what do these spaces look like, and how can landlords be sure they’re including the right ones?     

Shared Amenities as a Differentiator

While many tenants remain cautious about creating in-office programs to entice employees, property owners can fill this gap by developing hospitality-inspired spaces promoting convenience and engagement. Landlords must ask themselves what types of spaces tenants need to thrive in a modern office environment and develop a plan accordingly. This agenda should include outdoor spaces, conferencing centers, and lounges that cater to day-to-day business and provide opportunities for social interaction and relaxation.

Examples of successful amenities include:

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RECAP: Annual Meeting - Navigating the Horizon in 2025

We held its Annual Meeting at the Myers Park Country Club, where we elected the 2025 Board of Directors and awarded the 2024 Award of Excellence to Tim Sittema, the Managing Partner at Crosland Southeast.

Attendees delved into Charlotte's commercial real estate future, exploring pivotal public policy shifts, legislative changes, and evolving business practices. The panel of industry leaders examined critical topics including ESG initiatives, Basel III, environmental regulations, and local public policy, offering insights to help stakeholders stay ahead of emerging trends in the region.

Event Photos
Meeting Resource Information


Moderators

   
       
Sagar Rathie
Crescent
Communities
    Tim Sittema
Crosland
Southeast

 

Panelists

   
         
Bobbi Jo Lazarus
Elliott Davis 
  Peet Poillon
NFP 
  Mary Katherine Stukes
Moore & Van Allen 

CATS Report Shows Progress Being Made

Problems with the Charlotte Area Transit System became obvious to many observers about two years ago when one of its light-rail trains experienced a derailment. It was later determined by the North Carolina Department of Transportation (NCDOT) to be the result of deferred maintenance.  Shortly after, Brent Cagle a seasoned expert on transportation matters, was brought in to lead the department on an interim basis.  

At that time, the City’s Transportation, Planning, and Development Committee also received a referral from the Council to engage in greater scrutiny of CATS and receive regular progress reports from Cagle. To establish even further transparency, the Federal Transit Authority (FTA) was asked to review to obtain additional guidance regarding corrective measures.  The draft report (see page 267 of the meeting packet) outlining its recommendations was provided during the most recent November 20th meeting of the Metropolitan Transit Commission (MTC) which is a body made up of local government representatives who oversee the System.  The findings included the following:

  1. CATS deferred the required 600K overhaul of its rail fleet trucks which resulted in a derailment and in-service failure.
  2. CATS rail fleet maintenance plan does not include the detailed requirements for existing equipment at certain defined intervals.
  3. CATS has not met its miles between road calls goal of > 15,000 miles for the last three years.
  4. Site visit observations found that CATS staff could not confirm the status and plans for the buses located in Lanes 15-17 at the South Tryon bus maintenance facility.
  5. CATS could not provide FTA with a full assessment of all its system facilities and equipment.
  6. Currently, each CATS department has a separate asset list with no central coordination.  
  7. CATS does not report overall maintenance compliance to either senior management or the MTC.
  8. CATS Safety Department conducts audits/reviews of the maintenance of CATS assets.  However, these efforts are not fully documented.
Following the update, Chairman Driggs expressed his feeling that the committee’s work was complete on the referral and that monthly updates from Cagle would no longer be necessary.  Although no formal vote was taken, most members of the committee appeared to share a similar view.

Charlotte Planning Discusses UDO Updates, Housing Supply

Charlotte’s Planning Director, Alyson Craig, provided a lengthy presentation yesterday to members of the Transportation, Planning, and Development Committee on proposed changes to the UDO.  She began her remarks with an update on “Clean Up Text Amendment #4”.  Some highlights included the following:

  • Adds, deletes and modifies several general definitions.
  • For N1 districts, clarifies where setbacks are measured from
  • For residential development on corner lots, clarifies building orientation
  • Updates procedural and applicability requirements for Neighborhood Character Overlay (NCO) and Residential Infill Overlay (RIO) districts
  • Adjusts allowable building lengths for schools and places of worship
  • Clarifies connection requirements for attached housing
  • Allows duplexes, triplexes, and quads in additional zoning districts
  • Another text amendment related to housing supply is likely to be filed after the first of the year.  Some of Craig’s reasons for pursuing such a measure appear sound.  Here were some of her thoughts:
  • We are experiencing a housing crisis in Charlotte with demand outpacing supply.
  • Gentle density can provide supply that is aligned to the Charlotte Future 2040 Plan, while providing for-sale housing opportunities.
  • Initial Council referral dealt primarily with larger, greenfield development projects.
  • A need exists moving us to focus on infill and small-scale development options (missing middle) to increase homeownership opportunities and inventory.
Some key elements to be included are:
  • Appropriately scaled density: Explore ways to encourage stacked quads (2 over 2)
  • Allow housing in more places: Develop more flexibility for housing through partnerships and conversions
  • Affordable small-scale solutions: Revise ADU standards
  • Make it easier to develop preferred housing types: Create preapproved pattern books for missing middle housing types
  • Increase affordable housing tools and explore options to fast-track affordable projects
Time did not allow for the final presentation on the Community Area Planning Process which will be discussed in further detail at the next meeting.

U.S. Real Estate Boom: Five Decades of Development Across Major Sectors

Originally published on December 3, 2024, by Maria Gatea for NAIOP.

U.S. cities have experienced massive expansion across all real estate sectors over the past 44 years, according to recent StorageCafe research that looked at residential and commercial construction activity between 1980 and 2023.

Along with residential construction, industrial, office, retail and self-storage spaces have grown significantly, although the scale and pace of development differ among regions and asset types.

Industrial real estate boom, driven by e-commerce and manufacturing revival

Almost 29.3 billion square feet of industrial space have been delivered across the United States since 1980, representing about half of the country’s overall inventory.

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Nearshoring and Onshoring: Opportunities, Challenges and Globalization’s Impact

Originally published on November 25, 2024 by Kathryn Hamilton, CAE for NAIOP.

Supply chain dynamics, increased demand for “just-in-case” products, and a shift in where goods are assembled are three key drivers in a movement toward growing the manufacturing sector closer to home. NAIOP hosted an executive summit this month in Scottsdale, Arizona, to explore challenges and opportunities, and to hear from the developers, end users and experts who are influencing the trend and shaping the future.

Here are takeaways from the event: 

Globalization Isn’t Affecting Every Country the Same

In the last 40 years, only 25 countries in the world saw trade double or more between 1980 and today; in contrast, 89 countries saw trade stay the same or decrease. In short: globalization is not a juggernaut that affects everyone equally. In North America, about 40% of trade happens between U.S., Mexico and Canada, down from a one-time high of 50% in the 1990s.

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Most Livable Metro Areas in the U.S. in 2024

Originally published on November 18, 2024, by Alexandra Both for NAIOP.

What is the best place to live in the U.S.? The answer varies, but livability often means striking the right balance between cost of living, city amenities, and quality of life. RentCafe.com measured livability in 139 metro areas using 17 metrics divided into three categories: socioeconomics, quality of life, and location and community.

 

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Crossing Borders: How Politics and Globalization are Impacting North American Trade

Originally published on November 14, 2024, by Kathryn Hamilton, CAE for NAIOP.

Shannon O’Neil grew up in a small town in Ohio, not anywhere near the border. She was enthralled by stories shared by her grandmother and a great-aunt who traveled the world, which inspired O’Neil’s desire to work internationally. Today, she is the vice president, deputy director of studies, and Nelson and David Rockefeller senior fellow for Latin America studies at the Council on Foreign Relations. She was the keynote speaker at NAIOP’s Nearshoring/Onshoring Summit held in Scottsdale, Arizona this week.

O’Neil began exploring the commercial ties that cross borders more than a decade ago, observing that supply chains weren’t being talked about enough given all that they can influence. Although known for having commercial and profit margin effects, supply chains weren’t yet assumed to have big geopolitical effects.

All that changed in 2020-2021 when supply chains worldwide were suddenly pinched by a global pandemic that impacted everything.

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The Future of Prebuilt Office Spaces

Originally published on November 11, 2024, by Doug West for NAIOP.

Driven by changes in the business environment and the demands of modern corporate tenants, prebuilt office spaces have transformed from underused “leftover” spaces into an integral part of commercial leasing strategies. These modern, ready-to-move-in spaces are designed to meet the evolving expectations of both building owners and corporate tenants, offering flexibility, aesthetic appeal and functional elements that reflect current office trends.

Benefits of Creating Prebuilt Office Spaces:

  1. Move-in Ready Convenience: Prebuilt offices allow tenants to bypass lengthy design and construction processes, providing immediate access to functional, ready-to-use spaces.
  2. Flexibility for Tenants: These spaces can serve as short-term “swing spaces” for existing tenants during renovations or expansions elsewhere in the building, or as flexible offices for new tenants with short-term needs.
  3. Market Appeal: By offering design enhancements (e.g., color schemes, additional materials and finishes), prebuilt spaces can be customized to meet the needs of a wide range of tenants with varied preferences.
  4. Cost and Time Efficiency: Prebuilt offices eliminate much of the upfront design work for incoming tenants, helping to control project costs and speed up occupancy, benefitting both landlords and business owners.
  5. Consistent Leasing Strategy: Once established, a prebuilt office program can be easily replicated or modified, offering building owners a consistent leasing product that adapts to market demands.
  6. Scale: Creating a range of suite sizes, from as many as five or as few as one tenant space per floor, provides the leasing team with more options to offer potential tenants. Multiple layouts can be combined if needed, as long as the layout was created for flexibility.
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NAIOP Research Foundation Discusses Commercial Real Estate Challenges and Trends

Originally published on November 5, 2024 by Shawn Moura, Ph.D. for NAIOP.

NAIOP Research Foundation GovernorsVisionaries and Distinguished Fellows met in Las Vegas in October to discuss development challenges associated with water and power scarcity and possible research topics for future exploration. A panel, moderated by Marianna Hunnicutt, practice builder at Kimley-Horn, discussed how the development community in Las Vegas is working with utilities and municipal leaders to meet sustainability objectives and ensure access to water and power for future projects.

Michael Bernardo, enterprise conservation division manager at Southern Nevada Water Authority (SNWA), provided an overview of how Southern Nevada is planning for future development while facing a limited supply of water from the Colorado River, which supplies 90% of the community’s water. Southern Nevada receives 1.8% of the river’s flow annually as part of an agreement with neighboring states. SNWA augments this supply by treating any water that enters an indoor drain and returning it to the river. Every gallon returned to the river is one that SNWA can pump back out from Lake Meade. Water conservation efforts are focused on limiting uses that do not return water to the sanitary sewer. Evaporative cooling in the form of cooling towers and swamp coolers currently represents the second largest use of water after landscaping, which uses 50-60% of the available water supply.

Steve Neiger, principal/managing broker, CAST, and Rod Martin, senior vice president, Majestic Realty, explained how NAIOP Southern Nevada worked with SNWA to come up with a workable plan to limit evaporative cooling. The water authority explained to the development community that if no limits were placed on evaporative cooling, all new construction would have to come to a halt within several years. NAIOP Southern Nevada made it clear that a complete ban on all evaporative coolers would impose large costs on existing buildings and would force many to close if they could not be retrofitted with new roofs or expanded power capacity to support new HVAC systems. As a compromise, since the end of last year, evaporative cooling systems are now prohibited from being installed on new projects or added to existing buildings, but buildings with existing evaporative cooling systems can keep them.

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Directing Multiple Project Teams Toward One Shared Goal

Originally published on October 30, 2024 by Joel Brenner for NAIOP.

It took more than 3,500 workers to build the Empire State Building in the early 1930s. Nearly 100 years later, commercial construction projects still require the work of hundreds to thousands of people to complete. Depending on their size, these projects can take anywhere from six months to 10 years to deliver. Managing that volume of workers across an extended period of time is a considerable undertaking. Success doesn’t just hinge on technical expertise; each and every member of the project team must be engaged, working together toward one common goal that unites them.

Building a Team Family

Whether it’s the CEO or one of their executives from the owner’s side, the program or construction manager, project leadership has to set the tone for teamwork from the beginning. Key to this is building the entire team as an extension of the client’s organization, rather than as outside consultants or service providers. Bringing them into the client’s vision, educating them on the brand, sharing communication and accounting platforms all help to create a more seamless workflow and culture of whole-team integration. When people feel like they’re part of something bigger, they’re not just checking boxes; they’re invested in the outcome – and they know that others are, too. This sense of ownership is critical to long-term project success.

The process requires a level of humility, and not every person or company you interview is going to be able to take that step. Even if they are the most technically qualified for the job, if they can’t rally around the one-organization mentality, they’re not going to do the best work for the project. You need ambassadors, not order-takers.

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Office Market Update: Where Are We Now and Where Are We Going?

Originally published on October 11, 2024 by Ginger Meurer for NAIOP.

The supply imbalance in the office market has been stark the last few years, but panelists at NAIOP’s CRE.Converge conference this week identified bright spots and emphasized the possibilities for creative investors.

Rich Gottlieb, president and COO, Keystone Development & Investment, moderated the panel that featured John Weidner, AIA, NCARB, LEED AP, principal, Global Media Practice Area Leader, Gensler; Adam Showalter, managing director at Stream Realty Partners; and Connor Greissing, founder and managing principal, Brick Row.

Showalter said he hoped to “talk about some green shoots in office and not just a bunch of crabgrass.”

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