Board Insights

Jun

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.