The US and North Carolina Continue Toward Economic Recovery

May 4, 2010
Jimmy Barnes

Jimmy Barnes, SIOR, President of NAI Carolantic Realty

According to the Washington Daily News, North Carolina unemployment dropped from roughly 535,000 in February to about 496,000 in March. Promising news as well from the News and Observer, which said, “The broad-based household survey of jobs shows statewide employment up for four consecutive months (December to March) and increasing at an average monthly rate almost twice as fast as in the nation.”  AW North Carolina is just one of many companies contributing to this advantage. The transmission supplier for Toyota is investing $100 million and adding 360 jobs at its Durham plant according to SYNC newsletter.

Nationally, Wells Fargo’s Weekly Economic & Financial Commentary reports that real GDP grew at a 3.2% annual rate during the first quarter of 2010 and that consumer confidence was up 5.6 points in April.

Our NAI Carolantic brokers report a continued increase in activity with deals actually being closed.  After a slow start to the year, we have had over 20 leases signed and several sales transactions in just the last 45 days  Our listings, not unexpectedly, have increased 35% and clients are asking us for assistance more than ever.  Please give us a call if we can be of help to you in analyzing your real estate position:  919-832-0594.

Comments Off | Jimmy Barnes, NC, Raleigh, Recovery, Triangle Real Estate Market, Uncategorized | Permalink
Posted by Kerry Saunders

Turning the Corner

April 21, 2010

Jim Adams, Broker, NAI Carolantic, jadams@naicarolantic.com

As NAI Carolantic continues its commitment to tracking the information that will best help its clients make informed business decisions, positive signs are emerging that bode well for the future of the market on micro and macro levels.

In the April 19th issue of Business Week, staff writer Mike Dorning contradicted the polls with hard evidence of a national economic recovery.  Among other things Dorning mentioned that manufacturing has been recovering for eight straight months, and that economists are revising GDP growth forecasts for 2010 from 2.1% to 3%.  While recovery remains slow without a new driver for the economy, it seems that in spite of the recession woes and psychology, the indicators for a favorable return on a national level are present.

Locally, our region continues to receive positive national press with high rankings in various studies.  Raleigh-Cary was recently named as the ‘Third Best Place in the Country for Business and Careers’ by Forbes.com and Durham metro ranked 23rd.  The study ranked the 200 largest metropolitan statistical areas on cost of doing business; educational attainment; and economic, income, job and population growth. 

There are also tangible signs that the Triangle economy is on the rebound.  While liquidity from debt sources remains in short supply and underwriting stringent, at NAI Carolantic we are working with many well capitalized buyers that are seeking buy opportunities either with no debt or with a low debt to cost ratio.  As the economy continues to improve, banks and other lending institutions predict that current lending restraints will ease…a process that appears to already be underway.

Comments Off | Cary, Jim Adams, Raleigh, Recovery, Triangle Real Estate Market | Permalink
Posted by Kerry Saunders

Now’s the Time for an Owner Occupant

February 9, 2010

As we begin our climb out of the recession there are many opportunities in commercial real estate, but none greater than that for the owner occupant…where the proprietor of the business, owns the real estate as well.  There is no better time to make the jump from leasing to owning your real estate!

Kyle Greer, Broker with NAI Carolantic

Why?  First, prices have been reset.  Over the past 24 months, we have seen prices fall on real estate and in some cases as much as 35%.  This is primarily due to the fact that values became so inflated during the boom in the mid-2000’s they are now retracting to a more normal level.  So you are ‘buying in’ at a great time.

Second, if you’re looking to build from the ground up or fit-up an existing building, construction costs are at record lows due to the lack of work.  Contractors have slashed their margins just to keep crews working which translates into a great time to build or expand!  I work with a client who builds the exact same building at all locations and in the past two years, we’ve seen the bid prices drop over 40%!

Finally, and probably most critical is the financing.  In the mist of frozen credit markets, owner occupants are the ones who can get the financing needed to execute deals.  There are many reasons banks still have confidence in owner occupants.  They include:  Banks are anxious to build relationships with these businesses as they can sell them other services that are profitable to the bank; underwriting and monitoring is easier on owner occupied real estate; and typically owner occupants have more assets in case of default.  Not only are the banks eager to work with owner occupants, they are receiving the most aggressive financing out there and in some cases as much as 90% LTV!  There are many other programs such as SBA loans and other stimulus money that is directed to the small business owner.  On top of all of this, interest rates are at historic lows.

In summary, prices have been reset, there are many great properties, building costs have never been cheaper, financing is available, and rates are the lowest they’ve ever been.  If you are a business owner and have been on the fence considering whether or not to purchase land or a building for your business, now is the time to act!

Comments Off | Buy real estate rather than lease, Kyle Greer, Market Information, NC, Owner Occupied Real Estate, Triangle Real Estate Market | Permalink
Posted by Kerry Saunders

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