US & International Market Report

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   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.


NAI Carolantic Realty on Target with Commercial Real Estate Forecasts

January 19, 2012

At last year’s conference, NAI Carolantic predicted that 2011 would be a painfully slow recovery year, but that we would see bottom.  They were right on target once again.  We finished the year with a drop in vacancy in the multipurpose and office sectors and remained the same in retail.  We also had increases in absorption in all but two submarkets.  That was the message to more than 1,700 business and community leaders who gathered at Raleigh’s RBC Center on January 18th for the 27th Annual Triangle Commercial Real Estate Conference hosted by NAI Carolantic Realty. The Conference is considered the authoritative “state of the market” report on the Triangle’s real estate sector and an accurate bellwether on the health of the region’s overall economy.

Steve Stroud, SIOR, Chairman of NAI Carolantic, welcomed attendees noting NAI Carolantic was celebrating “Forty Years of Forward Thinking.”  He also said he was glad to be there given a tractor accident three months earlier.  He thanked family, his team at NAI Carolantic and friends for their numerous acts of kindness during his recovery.

Jimmy Barnes, SIOR, President of NAI Carolantic Realty

Following Stroud’s comments, NAI Carolantic President Jimmy Barnes, SIOR took center stage to review the past year’s commercial real estate landscape and offered Carolantic’s forecast for 2012.

“Remember, leasing is big business, as it has been reported there is over a trillion dollars nationally in lease obligations for public companies alone.  We are finally making headway, but nowhere near where we were in 2007.  The national capital markets are affecting business here in the Triangle. The primary stories are lots of money available but also billions of dollars of maturing debt.  Local and community banks are trying to work with their customers, but vacancies and declining values are big obstacles. In addition, a lack of institutional grade, Class A product, low interest rates, and an abundant money supply have driven up activity and consequently prices.  The Triangle has benefited from this activity with large transactions in the apartment market ($850 million) as well as the office market.  There is still a lot of political unrest, but we are seeing a national recovery, and our local real estate market is as active as we have seen it over the last 36 months.  Nothing robust, but we are optimistic moving into 2012”, said Barnes. 

NAI Carolantic’s survey and analysis showed that, in a market of almost 240 million square feet of office, multipurpose and shopping center space, nearly 32 million square feet remained vacant at year-end.  “Vacancy decreased slightly in the office and multipurpose sectors, and the shopping center market remained at 6% for the third year in a row.  Absorption improved slightly in 2011 and we expect minimal construction in the first quarter of 2012.  The apartment market continues to be on fire with the vacancy rate the lowest in the past decade,” said Barnes.

You learn something new every day!

June 15, 2011

Steve Stroud, SIOR, Chairman of NAI Carolantic Realty

Isn’t it great to learn something new every day…especially as it relates to our Region of North Carolina?  I was reading an article recently from the NC Department of Commerce  and wanted to share it with you.  The article indicated that according to a recent study prepared for the Research Triangle Regional Partnership (RTRP) and funded by NC State University’s Institute for Emerging Issues faculty fellow program found that North Carolina is a hub for smart grid companies.  According to the report, titled Smart Grid: Core Firms in the Research Triangle Region, NC states, “The Research Triangle Region and state of North Carolina have a unique opportunity not only to invent, manufacture and sell smart grid technologies to the world, but also to apply them at home.  The merger of Duke Energy and Progress Energy, creating the nation’s largest utility, may offer economies of scale that can facilitate smart grid deployment.”

The article went on to say the proposed smart grids hold the potential for utilities and customers to manage electrical usage more efficiently.  A smart grid would potentially enable the US power system to avoid power outages and blackouts.  Only California has substantially more facilities that develop, manufacture or service smart grid technologies.

The Research Triangle is home to the headquarters of five lead companies, making it second in the nation, and approximately 59 core smart grid firms with 101 locations that develop or manufacture relevant hardware and software, or perform other smart grid-related services.  These companies employ nearly 3,000 people.  Of the eight smart grid technology categories identified by the International Energy Agency, the Triangle’s largest concentration is in information and communications technology integration.

Knowing this fact about our Region can only help us as we talk with clients around the country and the world about all the advantages of living and working in the Triangle.  Let’s never stop learning.

Emerging Perspectives/Part III

January 31, 2011

Steve Stroud, Chairman of NAI Carolantic Realty, gave the following  ‘perspective’ at the 26th Annual Triangle Commercial Real Estate Conference held on January 12th at the RBC Center in Raleigh, NC.  This is the Part III and the final portion of his remarks.

“There are many who will try to convince us that ‘taking our country back’ means taking it backwards.  And nothing is further from the truth.  Yes, we want a return to our founding principles, to personal responsibility, statesmanship, and fair taxation. But, believe me, the solutions to the mess we are in now, require that we look to the future.  Specifically, to take a hard look at our schools and universities and work for fundamental changes in the ways we are teaching our children – especially when it comes to teaching the history of this great country.

Steve Stroud, SIOR, Chairman of NAI Carolantic Realty

Unfortunately, many of us will not be around to solve the problems we’ve created.  I believe that at this point the best legacy we can leave behind . . . something we can accomplish . . . is to get our education system back on the right track. 

For example, at the high school and elementary level, you have the efforts of Bob Luddy, founder and president of CaptiveAire Systems.  Bob has a passion for education, and he’s put his enthusiasm, time and money into creating Franklin Academy, Saint Thomas More Academy, and, in 2007, Bob opened Thales Academy in Raleigh, the first in a network of private community schools offering a high-quality grammar school education at low-cost tuition.  Franklin Academy and St. Thomas More are both nationally ranked near the top of all secondary schools.

We have charter schools like Raleigh Charter High School.  It was founded by a Board of Directors made up of business professionals, experienced educators, and college professors.  It is a community school, with a diverse student population and parents dedicated to seeing that their children succeed in a disciplined atmosphere that promotes real learning.

There are many new perspectives emerging on the education scene.  Students and parents have new opportunities, and we need to provide them with even more. We, as business and community leaders, have a responsibility to get involved.  We need to work with our public school system to help them make changes to better prepare our children to compete and succeed in the next century.

If we are going to get our country back, the best place to start is getting our schools back.  And by that I mean getting control away from those who object to the Pledge of Allegiance, and those who don’t believe it’s important that our children learn about the real heroes of American history.  We need the next generations, to appreciate the sacrifices that have made possible all of the freedoms we too often take for granted.  

I’ll close with this quote:  “All tyranny needs to gain a foothold is for people of good conscience to remain silent.”  Thomas Jefferson

We have been silent long enough.”

Emerging Perspectives/Part II

January 25, 2011

Steve Stroud, Chairman of NAI Carolantic Realty, gave the following ‘perspective’ at the 26th Annual Triangle Commercial Real Estate Conference held on January 12th at the RBC Center in Raleigh, NC.  This is Part II of his remarks.

Steve Stroud, SIOR, Chairman of NAI Carolantic Realty

“My parents, and their generation, never complained to the government, and never asked for anything but an opportunity.  They rolled up their sleeves and went to work, and they made the most of any opportunity that was afforded them.  They belonged to a community, and that community looked out for one another. There was nothing exceptional about their circumstances, or their resolve to raise a family with a deep sense of personal responsibility and a respect for this country and what it stands for.  They were a typical North Carolina farm family of the 1940’s and Fifties. Their values were hard work, and thrift, and belief in God and family. Their values had not changed one bit from those of our Founding Fathers.

This was not so long ago.  A single generation, in fact.  So where did we go wrong?  And more importantly, what can we do to get our country back again?

First, bring back statesmanship . . . . in Washington DC, in our state capitals, and in our city and county governments as well.  We need to stop electing politicians who know how to campaign but know nothing about governing.  We need to quit the earmarks and eliminate the gerrymandering that creates congressional districts that look like somebody spilled a bottle of ink on the map. Both parties have been guilty of the same thing. 

Second, get rid of bloated government.  Lately it seems that the only jobs being created have been government jobs. On the day that the Federal government employs fifty percent of the population, plus one person, then our democracy will cease to exist. 

Third, bring integrity back to our electoral process.  The right of every legal, registered citizen to vote must be protected.  And we must recognize that if people who have not earned the franchise are allowed to vote, that hurts the legitimacy of the whole democratic process.  Bring back the process where voters need to show their voter registration card, or some other form of official ID.  Right now it’s too easy to cheat.  In fact, the instructions on how to do so are published on the Internet.

Finally, we’ve got to fix the relentless taxation that seems to be aimed at punishing those who make the most of their opportunities and achieve something in our society. 

In some twisted fashion the achievers have become the enemy, to be seen simply as a source of tax money that is then re-distributed.  And when the bill comes due for this incredible level of deficit spending, who do you think is going to be asked to pay it? 

(Part III, the final portion of Steve’s remarks will be posted next week.)

Emerging Perspectives/Part I

January 16, 2011

Steve Stroud, Chairman of NAI Carolantic Realty, gave the following ‘perspective’ at the 26th Annual Triangle Commercial Real Estate Conference held on January 12th at the RBC Center in Raleigh, NC.  This is Part I of his remarks.

Steve Stroud, SIOR, Chairman of NAI Carolantic Realty

“Last year, I talked about essentials to continued growth: the importance of funding our flagship universities to maintain our competitive edge; educating our residents to establish a metropolitan agency to plan for infrastructure, water, sewer, and public services providing efficiency and economies of scale; and finally asking for a good-faith effort between commercial lenders and their mortgagees to extend performing loans and avoid making calls that trigger domino effects throughout the local economy.

Today, I still hold to my recommendations from last year, but I think there is more at stake right now.  I believe our leaders in Washington are playing a dangerous game. Perhaps they should read again what Thomas Jefferson reminded his fellow citizens in his First Inaugural Address, that happiness and prosperity rested upon,

“A wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned.”  This, he thought, was “the sum of good government.” Thomas Jefferson

Today, government borrowing has created a staggering national debt – now an incredible 94% of GDP. That not only threatens our stability now, but it will be a burden to our children, and our children’s children.  The so-called stimulus did nothing, except create problems we’ll encounter further down the road.  Our national debt has increased by 86%. Unemployment is stuck at more than 9%, and we all know the real number is much, much higher than that.

Obviously our local economy remains at the mercy of decisions made in Washington.  So tonight I’m going to take a broader perspective, and talk to you about our legacy as a nation, and then focus in on what I perceive to be our best hope for getting out of this situation – a greater involvement by all of us in the education of our children. 

We need to return to teaching American history in a way that will renew their appreciation for this country’s greatness and its unique position as a beacon of freedom in the world….by teaching our children the principles put in place by our founding fathers.”

Friends of Scouting Annual Breakfast Fundraiser

March 11, 2010

It has been my pleasure to Chair the 2010 Friends of Scouting Annual Breakfast Fundraiser.  And what an event we had this past Wednesday at the North Raleigh Hilton.  We had over 350 people in attendance with the highlight being the keynote speaker, Dr. Nido Qubein, President of High Point University.  He shared his life story which included his arrival in the United States with $50 in his pocket, unable to speak English and not knowing anyone.  His rise to become one of the most prestigious speakers in the country and an incredible businessman was an awe-inspiring story.  His ideals are in keeping with the spirit of the Boy Scouts: Always think of others first, and give and assist those who are not as fortunate as you.  Dr Qubein’s presentation was awesome.  It was funny and from the heart.  His patriotism and optimism were contagious.  I particularly enjoyed his story about serving salad to his lunch guest prior to asking for $1 million dollars for High Point University.  The guest committed to the $1 million donation.  Dr Qubein then only wondered how successful he might have been if he had served chicken strips with the salad…and ultimately what he could get if he served surf and turf! 

Our efforts with the fundraising breakfast help to support over 14,000 youth in the Boy Scout program here in the Occoneechee Council which serves 12 counties.  Just this year, we have awarded over 700 scouts with the Eagle recognition.  Having attended an Eagle ceremony just last weekend, I can tell you it is quite an accomplishment.  To see an 18 year-old young man express a sincere and emotional thanks to his scoutmasters, friends, scout volunteers, and ultimately his parents and grandparents was a very moving experience.  We are helping our youth…and it could be debated that we need Boy Scouts more than ever and they need us as well. 

Jimmy Barnes accepts Silver Eagle Sponsorship recognition on behalf of NAI Carolantic Realty

Special thanks to my Vice Chairs for their dedication in a questionable economy.  Their help made this one of the most successful fundraisers to date.  The Vice Chairs were: Ron Barbee, Dan Bryson, Jack Clayton, Steve Crouse, Fred Day, Bill Dixon, Rod Frankel, Richard Gannotta, Rick Guirlinger, Ritch Haar, Kathy Higgins, Jeff Legg, Neil Morris, Doyle Parris, J.R. Shearin, William Smith, Michael Story, Steve Stroud, Frank Tart, Rex Thomas and John Webster. Only once before have contributions surpassed what we received on the morning of our event.  Could there be a better way to celebrate the Boy Scouts of America’s 100th Anniversary and the success of the Occoneechee Council?  Your comments on the Boy Scouts?

State Pension Funds Could Help NC Businesses

February 18, 2010

In the coming year, it will be more important for every possible good-faith effort between commercial lenders and their mortgagees, to extend performing loans and avoid making calls that trigger domino effects throughout our local economy. That’s essential, but it’s not enough. There is simply not enough money for loans to act as a stimulus to economic activity.

E. Stephen Stroud, SIOR, Chairman

E. Stephen Stroud, SIOR, Chairman of NAI Carolantic Realty

We do know, however, the State of North Carolina has billions of dollars in State pension funds and other funds.  What if these funds were made available through banks that serve all of North Carolina? They could be put to work for economic development purposes such as commercial, residential and industrial development. 

The mechanism is already in place—no new bureaucracy required!  Loans could be given at the equivalent rate as federal funds.  And since banks touch all of the local economies in every region throughout the state, this would help jump start the economy in local communities throughout the state. AND the pension funds would be secure because the banks would operate under the same state banking agency and rules as they do today.

Thinking and Acting As a Metropolitan Area.

February 1, 2010

future raleigh skyline
You may think its Chapel Hill, or Raleigh or Apex. But when you’re flying into RDU at night and look out the window, what you see out that window is a metropolitan area.  But we don’t manage it like one. We don’t operate like a metro area.  We pay a high price because we don’t plan like one, and we don’t negotiate like one. We don’t buy equipment and services and land like one. We don’t throw our weight around like one, we don’t make our voice heard like one, and we don’t talk to prospective companies with the sophistication and wherewithal of one.

I’ve said this before, but a metropolitan agency to plan for infrastructure, water, sewer, and public services would provide immediate benefits of efficiency and economies of scale.  More importantly, it would get us on the same page in matters that concern all of us.

Our economic development officials, that work tirelessly for us, would be an even stronger force and could help us win corporate expansions or relocations All of the time.

Cary will be still Cary and Zebulon will still be Zebulon. This isn’t about making the Triangle one big city.

But watersheds and deep aquifers don’t care about city limits and if we’re going to secure an ample water supply for the entire Triangle, we shouldn’t either.  Such oversight would also allow us to build roads that don’t have to make a broken-field zig-zag to accommodate the differing plans of a dozen municipalities over 20 miles. The same goes for sewer and many public services.

The short of it is that private companies of a like-mind have for years merged to gain efficiencies and economies of scale to become competitive. But first we need to educate the residents of this region on the benefits of thinking and acting like a region in matters that concern us all.