An Intern’s Perspective

July 12, 2010

This summer, I have had the opportunity to work as an intern at NAI Carolantic Realty. My experience has been enjoyable and educational, teaching me a tremendous amount about commercial real estate and the Triangle area in just a short time. I feel fortunate to have been able to develop and practice skills with NAI Carolantic that will undoubtedly prove useful in the “real world”, wherever the future may take me.

My interest in commercial real estate is quite new, growing from my attendance of the 25th Annual Triangle Commercial Real Estate Conference this past January. It wasn’t that I found the 2010 market forecast particularly inspirational, but the fundamental facets of the real estate business drew me in. I liked Steve Stroud’s characterization of real estate as a finite, non-renewable resource that would prove recession proof in the long term, and the event left me wanting to learn more.

My internship has facilitated that learning, and I continue to pick up new information every day. Even from the back seat, it is pretty clear that it is a tough time for commercial real estate. Fortunately, there are signs of renewed activity and a case for optimism in the Triangle. I see brokers working harder than ever because opportunities are out there, and our market is one of the most promising in the country.

Byron Bryan, Intern, UNC-Chapel Hill

I truly appreciate having the opportunity to work with the people at NAI Carolantic. They have gone out of their way to help me learn, and I think that is a reflection of the way they approach their business and community endeavors. It is no surprise that NAI Carolantic is the Triangle’s leader in commercial real estate, and a great asset to the community.

Funding Our Flagship Universities

January 14, 2010

Steve Stroud

Steve Stroud, SIOR, Chairman of NAI Carolantic

Raleigh, NC – January 14, 2009 – As I stated at our 25th Annual Triangle Commercial Real Estate Conference, I believe there are some critical areas that must be addressed if we are going to have continued growth and maintain a competitive edge in the Raleigh/Durham Region.   I’m sharing one of my recommendations here and will have others in future blog posts.

The North Carolina Constitution (Article 9) says  The General Assembly shall provide that the benefits of The University of North Carolina and other public institutions of higher education, as far as practicable, be extended to the people of the State free of expense.

There’s only one way to do that. It’s to give our flagship schools in North Carolina the funding they need to compete as world-class institutions so they can continue performing as our economic engine.

Our flagship universities are not simply shinier versions of our other state-supported schools.  They are not simply the biggest, the oldest, with nationally known athletic programs.  They are not simply selective in their admissions.

If we keep funding them on par with the other schools in the UNC system, we are in danger of weakening our flagship universities.  We cannot allow that to happen. Sometimes we must make hard decisions to protect the people and the economy of North Carolina.

Our major universities repay our investment in them many times over by acting as drivers of economic growth.   If you doubt it for a second, consider this:

  • Less than 10 miles from this building is the headquarters of the largest privately owned software company in the world, with revenues of over $2 billion dollars and more than 11,000 employees. It was founded by a former NC State faculty member based on work done at NC State. It is called SAS.
  • Also less than 10 miles from here, stands the brand-new headquarters of the world’s largest clinical research organization, also with revenues topping $2 billion dollars and with more than 21,000 employees. It was founded by a former UNC-Chapel Hill professor. It is called Quintiles.
  • That’s software and biostatistics. How about technology? Well who here isn’t amazed at what’s happening with LED lighting? You can thank researchers at NC State for much of that work. And you can thank companies like Cree—founded by former NC State faculty—for bringing that efficient, green technology to the market. With revenue of $500 million and 3,500 employees, Cree just announced they would add another 500 jobs over three years.

These are only two of our outstanding universities which showcase our intellectual power to the nation and the world. They demonstrate our state’s commitment not only to higher education, but to innovation, and to getting results in the classroom, the laboratory, and the field.  These universities need additional funding to compete for top professors, top students and top research projects.

Let’s make sure we give these major, flagship universities the special consideration and funding they need to continue to compete in the world today.

Steve Stroud, SIOR, Chairman of NAI Carolantic Realty

The Tailspin is Over….

January 14, 2010

Jimmy Barnes

Jimmy Barnes, SIOR, President of NAI Carolantic Realty

Raleigh, NC – January 14, 2010 – Wow, 1,800 people attended NAI Carolantic’s 25th Annual Triangle Commercial Real Estate Conference yesterday.  Hard to believe we have been reporting on the commercial real estate market in the Raleigh/Durham area for so many years.  A big thanks goes to our corporate sponsors:  Bobbitt Design Build, Edge Office, JDavis Architects, Manning Fulton & Skinner, The Title Company of North Carolina, TriSure, Wachovia, a Wells Fargo Co., and Withers & Ravenel.  This event doesn’t happen without them and their generous support.

We reported this year that the tailspin is over for the residential markets, but the commercial markets will continue to suffer during 2010.  With continuing loan write downs, increasing vacancies and reducing cash flows, average losses in real estate values will exceed 30%.  A continuing sluggish economy with minimal job growth will prevent any recovery in 2010.  Yes the market will hit bottom, which in itself can be considered good news.

The reduction in new construction projected for 2010, the lowest in 15 years, is not good news for those in the construction business.  It does, however, help prevent vacancy numbers from getting too far out of whack.  Absorption continues to be minimal, so it will take a little time to get vacancy back to a healthy number.

2009 was an awful year for job growth.  There just wasn’t any.  Job growth is what makes our area so strong.  We had 25,000 new jobs annually in the 90’s, but from 2000 to 2009 we saw choppy annual job growth ending with a loss of 30,000 jobs this past year.  However, early projections for 2010 are positive.  Although minimal, its still good news and we have to build on it in the days ahead.

Jimmy Barnes, SIOR, President of NAI Carolantic Realty