Posted on January 15, 2020 by Patricia Kirk

With online retail sales rising by 10 percent annually, the volume of returns is also growing. According to research from market data firm Statista, returns for online sales tend to be two to three times more frequent than returns for in-store sales, with 15 to 30 percent of online purchases returned, compared to 8 to 9 percent of merchandise bought in-store. UPS estimates that nearly $42 billion of the total $138 billion in products sold online during the 2019 holiday season in the U.S. will be returned, which is up from $37 billion the previous year.

The longer it takes for items to be returned and processed, the greater the depreciation on the merchandise, especially for fashion apparel and seasonal products, notes David Egan, CBRE head of industrial & logistics research, Americas & Global. Reverse logistics software provider Optoro estimates that the value of apparel depreciates by 20 to 50 percent within eight to 16 weeks, and electronics lose 4 to 8  percent of their value per month. The challenge for retailers, according to Egan, is to get returned items back into inventory for resale quickly.

Click here to read more

Posted in the Winter 2019/2020 Issue by Shawn Moura, Ph.D.

In October, the NAIOP Research Foundation’s National Research Directors Meeting brought together NAIOP Distinguished Fellows and research directors from national real estate brokerage, data and investment firms at CRE. Converge 2019 in Los Angeles. Attendees discussed current Foundation research and trends in industrial and office development.

Market Tiers and Rankings: Clear as Mud?

Maria Sicola and Charles Warren of CityStream Solutions presented the initial findings of a white paper sponsored by the NAIOP Research Foundation that describes how the commercial real estate industry currently sorts metropolitan markets into tiers or rankings. Sicola and Warren-based their findings on interviews with industry researchers, consultants, and academics, plus published reports that utilize or examine market tiers and rankings.

Click here to read more

Posted on January 28, 2020

Last week, the U.S. Environmental Protection Agency (EPA) and the Department of the Army released the final version of the Navigable Waters Protection Rule. This regulation defines the “waters of the United States” (WOTUS) for purposes of determining the application of the federal Clean Water Act.

 NAIOP has strongly supported WOTUS reform that would provide greater clarity on the application of federal jurisdiction over domestic water bodies, and which would increase the predictability and consistency of government environmental permitting decisions.  NAIOP provided a comment letter to the EPA in 2019 with suggested revisions to the existing rule.

For developers and property owners, perhaps the most notable change concerns jurisdiction over ephemeral streams, which only flow intermittently, typically after rainfall. Regulation of these dry channels has been a contentious issue for years. This is especially true in more arid Western states, where they can account for the vast majority of streams, and may not see any water flow for long periods of time.

Click here to read more

Nominations are now being accepted for the 2020 Developer of the Year – NAIOP's highest honor.

This annual award recognizes a developer demonstrating exceptional leadership and innovation in commercial real estate. Nominees must be a Principal member in good standing and will be judged by a panel of industry peers using the following criteria:

1. Outstanding quality of projects and services. Detail your portfolio’s innovation through the incorporation of sustainability, technology, building wellness and resiliency as they apply to the development and building operations. Judges take into consideration the size and diversity of a nominee’s portfolio.
2. Financial consistency and stability. Detail your company’s strategies for return on investment, economic sustainability and success.
3. Ability to adapt to market conditions. Detail your company’s adaptability and success navigating economic, community impact, demographic and environmental conditions.
4. Active support of the industry through NAIOP. Detail how your company and your employees are involved in NAIOP through the number of active NAIOP members, your chapter participation, your support of NAIOP Corporate programs, and your employees’ participation in chapter and Corporate Boards of Directors.
5. Support of the local community. Detail your company’s charitable and philanthropic activities within your market.

Nominations close Friday, February 28, 2020.

Click here for nominations

Posted on January 23, 2020.

Today, the United States Environmental Protection Agency (EPA) and the Army Corps of Engineers announced a final Waters of the United States rule. 

Thomas J. Bisacquino, president and CEO of NAIOP, the Commercial Real Estate Development Association, issued the following statement upon the announcement of the regulation:

"For years, the lack of a clear definition regarding the scope of federal regulation of our nation's waters has been a costly source of confusion, delays and compliance challenges for the commercial real estate industry. The Navigable Waters Protection Rule is a critical step forward and represents a reasonable approach to federal oversight that balances environmental protection with economic realities. NAIOP appreciates and commends the work of EPA and Army Corps of Engineers for addressing many of these concerns, and for developing a rule that implements commonsense streamlining measures, as well as appropriate jurisdictional definitions, among other changes."

Posted on January 29, 2020

Lawmakers return to Washington with a possible presidential impeachment trial in the Senate on their minds. But as that process plays out, policymakers are discussing other issues that are important to commercial real estate.

Just before Christmas, officials at the Treasury Department released the final round of regulations governing opportunity zones, the economic development tool designed to spur job creation and economic development in distressed or developing communities. Opportunity zones were created as part of the 2017 Tax Cuts and Jobs Act that NAIOP supported.

The final rules address questions such as:

• What types of gains may be invested and when?
• When may gains be excluded from tax after an investment is held for a 10-year period?
• How can large C Corporations invest in opportunity zones?

Click here to read more

Posted on January 27, 2020

By Aaron Ahlburn

How advancements in transportation, technology, and construction continue to converge.

Global economic uncertainty, rapid technological advances, and pressure from e-commerce are forcing radical innovation in supply chains. With transportation and the movement of goods and materials making up a significant portion of total logistics operating costs, these innovations are altering the logistics landscape. They allow supply chain and transportation managers to focus on cost efficiency, profitability, and service to clients.

However, changes in individual sectors of logistics are not progressing at the same pace. Some are being deployed. Others may not live up to expectations. As trends such as faster e-commerce fulfillment, more urban deliveries, and autonomous trucking and robotics continue to converge, what will be the impact on industrial real estate?

Posted on January 24, 2020

Watch a short video and get to know Larry Lance, 2020 NAIOP Chairman.

As he visits chapters and represents NAIOP throughout the year, Lance says he plans to emphasize the relationships and partnerships that come from NAIOP membership. “NAIOP has always strived to serve our members at every stage of their careers. Over the next year, I’d like to focus on helping our CEOs and Developing Leaders in particular to deepen their engagement with NAIOP and with each other,” he said during comments at CRE. Converge 2019. “My challenge to CEOs is to not wait until retirement to give back, and to get more involved with NAIOP through the Forums program or the Research Foundation.”

Lance is a 33-year NAIOP member, having joined the organization in 1987. Throughout his long membership, he has given his time as a member of the board, where he has led the government affairs committee, served on the Developer of the Year selection committee and Development magazine editorial board, and been a NAIOP-PAC Trustee.

We are now accepting nominations for the NAIOP NC Project of the Year awards. The Project of the Year Awards are given annually to project teams to recognize outstanding commercial development in North and South Carolina. The award is presented during the NAIOP North Carolina Statewide Meeting in Pinehurst. Nominations are accepted until February 28, 2020 by completing the online form. Click here to view past winners.

Winning projects will be invited to be part the lunch panel on March 26, 2020 at the NAIOP NC Conference in Pinehurst.

Award Guidelines

The Project of the Year award is determined by a selection committee of industry peers from each NAIOP Chapter in North Carolinas and three non-NAIOP NC members. Awards will be given for two categories - new ground up or redevelopment. The following criteria are used to evaluate entries:

• A NAIOP Member in good standing who demonstrates substantial participation in the project.
•  Must have broken ground or the project must have been completed between January 1, 2019, to December 31, 2019.
• Submissions can be submitted for project category #1 new ground up and project category #2 re-development / adaptive re-use / re-purpose.
• The project must have made a unique contribution to the economic growth and vitality of a region or community. (e.g. job creators, a catalyst for surrounding economic development, creation of public infrastructure that would have otherwise not occurred).
• Demonstrated unique design or innovation (is there a “cool factor”).
• Ability to overcome design, regulatory issues or other factors that challenged the project at various phases.
• Provide photos/renderings of the project.

Submit A Project

Posted on January 21, 2020

By Jason Beske, AICP

The declining prospects of North America’s shopping malls have been the subject of significant media attention, industry concern and public interest. Faced with competition from e-commerce and shifting consumer preferences for other retail formats and experiences, hundreds of traditional shopping malls have closed in recent decades, with many more closures expected in the coming years. The NAIOP Research Foundation commissioned this report to examine how developers are transforming struggling or closed malls into properties that fit within current market conditions and serve the needs of their surrounding communities.

Once able to attract consumers by offering a range of retail options in a single location, traditional malls have struggled to compete with other retail formats in recent years. Many anchor stores and smaller mall-based retailers have gone out of business due to competition from online and budget retailers. Although certain upscale malls located in dense and growing metropolitan areas continue to attract customers, Class B and C retail centers have struggled to remain open.

Click here to read more.

Posted on January 21, 2020.

We are proud to introduce our new association members! The following is a list of individuals who have joined NAIOP Charlotte since January 16, 2020:

• Timothy Boggs, Cenero
• John Coleman, Northwood Office
• Cameron Coughlin, The University of North Carolina at Charlotte
• Jacob Hart, Schneider Electric
• Scott Hinson, McMillan Pazdan Smith Architecture
• Chris Kerr, Batson-Cook Construction
• Sloan Kormelink, EDIFICE
• Brian Landes, JLL
• Elizabeth McMillan, Crescent Communities, LLC
• Jason Munday, SeamonWhiteside
• Scott Rigsby, IA Interior Architects
• Rick Schroder, SeamonWhiteside
• Matthew Vranjes, Civil & Environmental Consultants, Inc

NAIOP Charlotte, the Commercial Real Estate Development Association, held its annual meeting on Wednesday, December 18, 2019, at the Charlotte City Club, where they elected the 2020 Board of Directors and announced the winner of their Award of Excellence. This award recognizes an individual who positively influences our community and industry. ­­­­Attendees also heard from Ron Kaufman, RNC National Committee; John Lassiter, Charlotte 2020 Host Committee; and Walter Price, Moore & Van Allen on the Republican National Convention coming to Charlotte in 2020 and its impact on the city’s economy.

Click Here for the Press Release

Click Here to View Event Photos

2020 Board of Directors

President – Scott Harris, Choate Construction
President-Elect – Patrick Pierce, Selwyn Properties Secretary – Jason Moore, Rodgers Builders
Treasurer – Welch Lyles, Asana Partners
Immediate Past President – Tracy Dodson, City of Charlotte
Past President – Cheryl Steele, Offit Kurman, P.A.
*For a full list of the 2020 NAIOP Board of Directors, visit our website at http://www.naiopclt.org/board-of-directors

Award of Excellence

The Award of Excellence was given to Jason Moore of Rodgers Builders, Inc. The award is presented to an individual that dutifully gives time and energy to a focused non-profit organization or community cause and humbly serves others in the community without concern for recognition or compensation. He or she champions the commercial real estate industry on a national, state and/or local level and passionately seeks to be an agent for change, even in the face of diversity. This person is seen as a real estate industry ambassador at any level of government or community.

Photo (L-R): 2019 NAIOP Charlotte President Tracy Dodson, City of Charlotte, and incoming 2020 NAIOP Charlotte President, Scott Harris, Choate Construction Company

Published on January 15, 2020.

The City of Charlotte’s Placemaking Program launched in 2018 with the mission of using urban design and placemaking to transform underutilized public spaces into vibrant places for people. The Urban Design Center in the City of Charlotte’s Planning, Design, and Development department is leading the effort with their own projects while creating opportunities for neighborhoods to use placemaking to promote community collaboration and accomplish public space goals.

The City of Charlotte Placemaking Program is opening up a new round of Placemaking Grants for 2020. The application will be available on December 30th and be due on March 6th. Please visit our Placemaking Grant page for the guide, application, and other important details.

​Check each project below to see how the City of Charlotte is using placemaking to create more vibrant and well-loved community spaces! A multi-departmental team led by the Urban Design Center has made placemaking more accessible through Placemaking Hub processes and Placemaking Grants for neighborhoods, and a Placemaking Artist program for local artists.

Learn More Here

Posted on January 14, 2020

The Charlotte Land Development Standards Committee has determined that various details in the CLDSM need to be revised or added as Revision No. 19 of the CLDSM. DRAFT updated details are available on the CLDSM website at https://charlottenc.gov/cldsm in a PDF marked up with revision clouds and revision notes. The projected effective date for the updated details and Revision No. 19 of the CLDSM will be January 27th, 2020. Please review the DRAFT details and provide any feedback or comments to Brendan Smith at [email protected] by January 15th, 2020.

Posted on December 30, 2019

Save the date for the 2019 REBIC Public Policy Forum with guest speaker Michael Stegman, author of the white paper "Eliminating Exclusionary Zoning Should be the Civil Rights Issue of Our Time."

February 6th, 2020
1:30 - 3:00PM
UNC Charlotte Center City Auditorium

Register Now

Posted on November 26, 2019

Get the inside track on upcoming opportunities in the office sector in this member-only webinar on Dec. 17, 2-3 p.m. EST. This webinar will provide insights and data from the latest NAIOP Office Space Demand Forecast, and identify linkages between overall economic activity and the demand for office real estate.

Learn More & Register Here

Posted on December 6, 2019

The NAIOP Research Foundation has published the NAIOP Office Space Demand Forecast for Q4 2019.

Key Takeaways:

• The U.S. office market continues to perform as expected, with an average of 14.7 million square feet absorbed per quarter in 2019.
   
• The forecast for the remainder of 2019 and 2020 remains strong at an average of 13.2 million square feet absorbed per quarter in 2020 and 12.7 million square feet per quarter in 2021.
   
• At present, the economy – and thus the office markets – are expected to remain in an upcycle for at least the next 18 months.
   
• The effects of the WeWork situation are likely to be isolated to a small set of markets and will not broadly impact the national office market. The company's inability to expand may generate more demand for direct leases in some markets, but overall, coworking appears to be a long-term trend, and the forecast will likely resist any short-term impacts caused by WeWork's recent troubles.

Firms might slow their expansion plans in 2020, reducing the need for new office space, in reaction to overall fears of a slowdown. Still, most measures of consumer health, including wage growth, job growth and consumption expenditures, remain strong.

View the Report

Posted on November 25, 2019

By Amanda Abrams

When Research Triangle Park in North Carolina opened in 1959, its bucolic setting was considered a major selling point. With office buildings hidden behind grassy meadows and swaths of pine forest, the quiet development was viewed as a perfect spot for the thinkers who went to work at companies like IBM and RTI International.

Posted on November 22, 2019

DEVELOPMENT SERVICES TECHNICAL ADVISORY (DSTAC) COMMITTEE: Meetings are held on the fourth Wednesday of each month on the 8th floor in Planning's Innovation Station, Charlotte Mecklenburg Government Center (600 East Fourth Street, Charlotte, NC) from 1:00 pm to 2:30 pm.

STORM WATER ADVISORY COMMISSION (SWAC) MEETING: Meetings are typically held on the third Thursday of each month at 4:30 pm at the Mecklenburg County Offices at 2145 Suttle Avenue, Charlotte, NC.

TREE ADVISORY COMMISSION: Meetings are typically held on the third Tuesday of every month at the Charlotte Mecklenburg Government Center (600 East Fourth Street, Charlotte, NC) beginning at 5:00 pm.

Posted on November 18, 2019

Last week, the House Committee on Financial Services unanimously (57-0) passed a bipartisan bill that would extend the Terrorism Risk Insurance Program (TRIA) for seven years. The reauthorization of TRIA the can now move to the floor of the full House of Representatives.

The bill, H.R. 4634, would also require a study on the cyberterrorism market and expand an ongoing study to determine the availability and affordability of TRIA coverage for places of worship. In the Senate, Republican Thom Tillis of North Carolina is reportedly working to introduce a reauthorization bill as well. The current bill expires next year.

In order to guarantee that insurance coverage would be available for the commercial real estate industry, Congress first passed the Terrorism Risk Insurance Act of 2002. It created a federal reinsurance backstop program for terrorism insurance, and mandated that insurers make terrorism coverage available along with their property and casualty lines of insurance. Congress has already extended TRIA three times.