April 5, 2012
Do you have commercial real estate in other US markets or internationally? If so, we suggest you contact us for the 2012 Global Market Report produced by NAI Global. The 150-page Report provides an insider’s view of market conditions and trends in more than 200 commercial real estate markets worldwide including insight into where the real estate opportunities exist. Using narrative market reports and statistical charts, the report provides market highlights, trends, demographic and business profiles, rental rates, vacancy rates and land prices.
Steve Stroud SIOR, Chairman, NAI Carolantic Realty
Dr. Peter Linneman, NAI Global’s Chief Economist and Principal of Linneman Associates, the leading real estate economics consulting firm, worked with NAI Global to prepare the Outlook portion of the Report. Linneman Associates also added its expert economic analysis and insights to the detailed local market data from NAI professionals worldwide to deliver the information on commercial real estate costs and market conditions around the world.
For a free copy of the report, please email us at firstname.lastname@example.org. If we can assist with any current or future real estate requirements anywhere in the world, call us at 919.832.0594. We look forward to being of service.
May 25, 2011
Jimmy Barnes, SIOR, President of NAI Carolantic Realty
New figures were recently released by the NC Employment Security Commission which indicated the state added 2,900 nonfarm jobs during April. In addition, the state’s unemployment rate held steady in April, remaining at 9.7 percent for the second month in a row. Not tremendous growth, but at least on the positive side especially considering the disastrous job loss we had in 2009.
Along with this news, the North Carolina Department of Commerce released information that it has been working on 149 new projects with 74 actual projects announced. Over 7,000 jobs have been created with a capital investment of $1.09 billion between January and May, 2011.
We can also celebrate some local good news with the Lenovo announcement on May 20th that it had signed a contract with Affiliated Computer Services, Inc, a Xerox Company, as part of an initiative to expand its Global Services business. The agreement will create approximately 300 new jobs in the Research Triangle region.
Oh, and I congratulate our hometown boy, Scotty McCreery who is a shining light for the Town of Garner and the State of North Carolina. Way to go Scotty!
Just a few of the reasons why we have a lot to be thankful for living in North Carolina, and specifically the Triangle region. Please let us know if we can be of assistance to you and your firm.
September 24, 2010
We can’t say it enough…the Raleigh/Durham region is one of the best places in the US to live, work and play. This was reconfirmed this week when I attended the Greater Raleigh Chamber of Commerce Board meeting and heard the latest Economic Development report. From May 15-September 15, Wake County Economic Development has assigned 12 new projects, had 7 client visits and had 104 existing industry interactions. Twenty projects are actively being worked on by staff and will represent a potential total of $305,625,000 in new investment and 3,293 new jobs. There have also been 18 companies who have relocated or expanded in the area since May. They include: BB&T, Deere & Co., Kyma Technologies, Inc., Rex Healthcare, WakeMed Health & Hospitals, Inspire Pharmaceuticals, and Pensk Truck Leasing Co. These 18 companies account for 267 new jobs and over $167.9 million in new investment.
Jimmy Barnes, SIOR, President of NAI Carolantic Realty, Jbarnes@naicarolantic.com
Despite the sluggish commercial real estate market, we do see some activity. One of our brokers, Scott Hadley, just completed a large lease renewal and expansion for FMI. Another broker, Gray Creech, closed on two office condos, and I recently completed at 25,000sf lease with BeavEx in RTP. We continue to work with several clients in locating new sites for their operations. In addition, we are helping several banks dispose of excess real estate with closings occurring in North and South Carolina.
Let us know if we can be of assistance to you. As the song goes, “Nothing could be finer than to be in Carolina!”
NOTE: Be sure to mark your calendar for our 26th Annual Triangle Commercial Real Estate Conference scheduled for January 12, 2011 at the RBC Center in Raleigh. This invitation-only event continues to be one of the most unique gatherings of Triangle business and community leaders.
May 27, 2010
Moss Withers, Broker, NAI Carolantic Realty
I was fortunate to attend the annual “State of the Research Triangle Region” presentation this morning at the Sheraton Imperial. Approximately 800 of the area’s leading business executives attended the breakfast as a great way to network and understand what has taken place over the past year in the Triangle corporate community. Charles Hayes, President and CEO of the Research Triangle Regional Partnership, gave the audience an in-depth look at the region’s economic health and competitive position for the past year. He also discussed areas of focus for the community moving forward.
“Despite the one-year employment decline, the region posted a net employment gain of 50,000 over the past five years, with the fastest-growing jobs in healthcare, professional and technical services and educational services. These job categories reflect the strength and growth of the region’s world-class life sciences and technology clusters, particularly pharmaceuticals and advanced medical care, as well as its major healthcare facilities and many institutions of higher learning,” said Hayes. “The new year has brought signs that economic recovery is underway. Through the first quarter of 2010, companies in life sciences, technology, defense and other industries have announced more than $65 million in investments for projects that will create another 900 jobs over the next few years.”
NAI Carolantic Realty was pleased to provide RTRP with the latest commercial real estate statistical information as it relates to vacancy, absorption, rental rates, and new construction for the office, multipurpose and shopping center categories. As brokers, we often use the information RTRP has organized and provided as another marketing and analytical tool for both current and potential clients.
For additional information on the presentation this morning, contact the Research Triangle Regional Partnership office at 919-840-7372 or visit them on the web at www.researchtriangle.org. If we can be of assistance in analyzing your real estate position, please give us a call at 919.832.0594, or visit us on the web at www.naicarolantic.com.
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!
January 26, 2010
Robin Roseberry Anders, SIOR
In May 2009, MSNBC named Raleigh-Durham #2 in the nation for markets likely to recover quickly. True to form, the Triangle area continues to attract new businesses, as well as domestic and international expansions, despite the economic downturn. The Triangle Combined MSA added an average of 10,254 jobs per year (July to June) over the 7-year period ending in June 2009 resulting in an average 1.5% annual growth rate. Companies like EMC Corporation announced plans for a $280 million expansion that will add almost 400 jobs over the next five years. Allscripts-Misys Healthcare Solutions will bring 125 new jobs to the area as the company utilizes $19 billion of government money to update health information systems. Deutsche Bank will open a technology development center creating over 300 jobs and investing $6.7 million.
Though the Raleigh/Durham/RTP market has experienced its share of bad news, some of the more prominent stories have been offset by significant announcements. For example, emerging from Nortel’s bankruptcy is Avaya’s acquisition of a portion of Nortel’s local business, keeping a large percentage of Nortel employees in the Triangle. On the heels of Sony Ericsson’s recent defection, the Baton Rouge-based IEM announced moving its headquarters to the Triangle, bringing 430 jobs over the next six years. Laid off workers are once again taking opportunities to start their own businesses. Consistently, the Triangle area is targeted for its innovation and highly educated workforce.
In working with companies looking to expand or relocate their operations, there’s no better time than now to have your commercial broker evaluate your real estate options. If we at NAI Carolantic can be of service to you, let us know. It’s not all bad news out there.