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.

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Gaining Traction in Today’s Real Estate Market

May 13, 2010

The NAI Carolantic brokers recently attended a two-day regional NAI meeting to discuss current economic trends and additional ways to assist our clients.  The meeting, held in Charlotte, was very productive and attended by over 80 NAI brokers from North Carolina, South Carolina, Tennessee and some from the DC area as well as New York.  In networking with these NAI brokers, the general consensus was that there are some sectors of the market that appear to be trying to gain some traction.  Most of this activity is user driven, and for properties that are both well located and reasonably priced.

Mark Everett, Broker, NAI Carolantic Realty

This is consistent with what I see in the Triangle market and includes various types of owner occupied buildings. I believe activity has picked up and the market is looking for ways to be re-energized.  If you have the need or desire to own your building, you can still get a deal done.  Financing is available for owner occupied real estate including traditional bank financing as well as SBA loans.  Couple that with available land parcels and favorable interest rates and it is a great time to purchase or build your own facility.  Give me a call and let’s see if I can help you ‘gain some traction’ in handling your real estate needs.


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.