KARNES is proud to announce that Managing Partner, Brian Reece, will be a narrator for the upcoming Triangle Apartment Association (TAA) Fall Construction Bus Tour. In addition to seeing several new apartment communities in the Triangle, bus tour participants will also receive market information including analysis by KARNES.
Don’t miss this truly unique experience to hear from industry leaders about submarket performance, market trends, new product trends, demographic and employment statistics, and factors that are driving new development. Whether you are an investor, owner, developer or operator, you will walk away with a better understanding of the Raleigh-Durham-Cary Market!
The bus tour will take place Friday, October 17th from 9AM-3PM. Cost is $75 Members/ $85 Non-Members
Click here for more information or to register today!
Last month we mentioned a limited seating event that you didn’t want to miss, and we would like to inform you that the NAIOP Triangle Bus Tour is SOLD OUT!!! The tour is a truly unique experience to see proposed, renovated, or under construction properties in the Triangle! NAIOP Triangle brought back its signature bus tour event that allows real estate professionals to gather the latest insight and “real time” data on office development in the Triangle.
KARNES is proud to be a Gold Sponsor of NAIOP Triangle and will be the exclusive data and research provider for the bus tour.
The bus tour will take place Thursday, October 9th from 9AM-4PM and includes lunch, all day parking, reception, and much more! For event details, please refer to the following link: http://www.naioprt.org/events.cfm
Posted on September 15, 2014 by sales4karnesco - Chapel Hill, Commercial Property Exchange, Development, Durham, Events, Office, Raleigh, Subscribers, Triangle, Triangle CPE, Users
NAIOP Triangle is bringing back its signature bus tour event that will allow real estate professionals to gather the latest insight and “real time” data on office development in the Triangle. Don’t miss this truly unique experience to see proposed, renovated, or under construction properties in the Triangle!
KARNES is proud to be a Gold Sponsor of NAIOP Triangle and will be the exclusive data and research provider for the bus tour.
The bus tour will take place Thursday, October 9th from 9AM-4PM and includes lunch, all day parking, reception, and much more! For registration details, please refer to the following link:
Posted on July 21, 2014 by info4karnesco - Chapel Hill, Charlotte, Commercial Property Exchange, Construction Update, Development, Durham, Greensboro/Winston-Salem/High Point, KARNES Perspective, KARNES Tri-City Report, Raleigh, Retail, SiteIndex, Triad CIE, Triangle, Triangle CPE, Western NC, WNC CPE
A combined total of 144.8 million square feet of retail space was located within the Tri-City area at the end of 2013. With a retail inventory totaling approximately 60.7 million square feet, the Charlotte market was the largest of the three North Carolina retail markets, accounting for 42% of the retail inventory. The Triangle market ranked second with 46 million square feet of retail space, while the Triad maintained 38 million square feet of retail space. After declining to a historical low of 541,782 square feet in 2002, retail construction increased to nearly one million square feet in the Tri-City markets during 2013. New retail supply during 2013 was most pronounced in the Triangle region, where 693,982 square feet of new space was delivered. The Charlotte region ranked second with 231,680 square feet of new retail space completed during 2013, while the Triad region reported 38,000 square feet of new retail during 2013. Only the Charlotte region reported a continued decline in new construction from the level reported in 2012. While retail construction in the Tri-City area increased during 2013, the level of new supply remained well below the 2.6 million square feet averaged annually between 2008 and 2011.
The relatively low supply-side pressures from new construction allowed for vacancy rates to decrease in all of the Tri-City markets during 2013. At 8.0%, the Charlotte retail vacancy rate decreased 0.6% of a point during 2013 as net absorption totaling 494,986 square feet outpaced the 231,680 square feet of new supply. Despite the decrease, the Charlotte vacancy rate remained above the 6.9% reported in 2008. The Triangle retail vacancy rate decreased 0.4% of a point during 2013 as net demand totaling 849,391 square feet outpaced 693,982 square feet of new supply. The Triangle’s 2013 vacancy rate of 6.6% was the lowest of the Tri-City markets, but remained 0.1% of a point higher than the 6.5% reported in 2008. New retail supply totaling 38,000 square feet in the Triad market was outpaced by net demand totaling 386,123 square feet during 2013. As a result, the Triad retail vacancy rate decreased 0.9% of a point to 10.1% from the 11.0% reported at the end of 2012. Despite the decrease, the rate remained 0.5% of a point higher than the 9.6% reported at the end of 2010.
Posted on July 21, 2014 by info4karnesco - Chapel Hill, Charlotte, Commercial Property Exchange, Development, Durham, Greensboro/Winston-Salem/High Point, Industrial, KARNES Perspective, KARNES Tri-City Report, Raleigh, SiteIndex, Triad CIE, Triangle, Triangle CPE, Western NC, WNC CPE
Karnes divides the industrial market is into two categories – warehouse and flex. At the end of 2013, the Tri-City markets contained a total of 105 million square feet of warehouse space and 34.6 million square feet of flex space. With over 52 million square feet of warehouse space, the Triad market accounted for approximately 50% of the Tri-City warehouse market. The Charlotte market ranked second with 34 million square feet, while the Triangle market maintained 18.4 million square feet.
The 178,250 square feet of warehouse space completed in the Triad market during 2013 accounted for all of the new warehouse space completed among the Tri-City regions. For the Triangle market, 2013 marked the fourth year in a row where no new warehouse space was delivered. Two warehouse buildings were delivered in the Triad market during 2013 with the largest being a 134,650-square-foot speculate building at 1023 Corporate Park Drive in Mebane. A total of only 564,738 square feet of new warehouse space was delivered in the Charlotte market between 2009 and 2013, while the Triangle market reported even less at 412,940 square feet. With the additional space delivered during 2013, total warehouse construction in the Triad during the same period totaled 469,750 square feet.
Renovation of the historic Grinnell Water Works building at 1431 W. Morehead Street started during the second quarter of 2007 but stalled in 2009. The building was purchased by Edifice for $688,500 during the third quarter of 2013 and now appears to be back on track with active renovations for new occupancy.
Edifice has tabbed Kristy Venning and Charlie Swanson of Beacon Partners to market the 28,128 square foot building.
Edifce’s headquarters is located in the neighboring Coca-Cola Building that they purchased for $650,000 in 1996 and gives them ideal proximity to oversee the renovations and selection of future tenants. One of the most exciting renovations coming to 1431 W. Morehead Street will be a 1,300 square foot rooftop patio for tenants to enjoy the impressive skyline views afforded with its location just outside of Downtown submarket. Edifice expects completion of the extensive renovations on the 28,000-square-foot building by the end of June 2014.
When completed, 1431 W. Morehead Street will be the first new office space added to the Karnes inventory of multi-tenant for lease inventory in the Midtown submarket since 2012 when the Levine Cancer Institute (171,000-square feet) opened.
Preliminary data for the first quarter of 2014 show that the I-77/Southwest office submarket will lead the region in demand during the first quarter of 2014 with nearly 155,000 square feet of positive net abortion.
Significant leases reported in the I-77/Southwest office submarket during the first quart of 2014 include:
- Red Classic Services, a transportation division of Coca-Cola, leased 16,250 square feet at Patriot Plaza.
- Shelco moved into 20,822 square feet at LakePointe’s Corporate Center One.
- LPL Financial Services signed a temporary lease for 62,795 square feet at Airport Plaza.
- Carolinas HealthCare System occupied the 66,864-square-foot Arrowpoint One.
Two buildings were removed from the Karnes dataset of multi-tenant for lease office inventory during the first quarter of 2014 in Charlotte’s second largest suburban submarket. The Atrium Corporate Centers at 4421 Stuart Andrew Blvd. and 4335-4339 Stuart Andrew Blvd. were purchased by Mecklenburg County Schools for $7.5 million and will serve as their headquarters allowing for consolidation of their offices across the region. The buildings which total nearly 150,000 square feet had almost 50,000 square feet marketed vacant when removed.
I-77/Southwest’s office vacancy fell 2.2% points from the end of 2013 to during the first quarter of 2014. At 19.1%, I-77/Southwest’s first quarter of 2014 office vacancy was 8.1% points lower than the 27.2% high reported at the end of 2011.
The U.S. Department of Veterans Affairs chose a site next to LakePointe Corporate Centers Five and Three for a six-story health-care center that will be developed by Childress Klein-Cambridge Healthcare Solutions, designed by RPA Design and constructed by J. E. Dunn Construction Company. The 295,000-square-foot facility will offer out-patient primary care and specialty services and is expected for completion by the third quarter of 2016.
Continued leasing success and pre-leasing could prompt developers to break ground on portions of the 2.4 million square feet of proposed office space in the I-77/Southwest office submarket. One of the largest and most recently announced proposed projects in the I-77/Southwest office submarket is the 400,000-square-foot expansion at Coliseum Centre that could attract current neighboring tenants in the area like The Lash Group and LPL Financial to expand their foot print into new space.
An Alabama-based investor has purchased the Golden Gate Shopping Center, located at 2208 Golden Gate Drive in Greensboro, and has begun renovations on the property. The center was built in 1960 and purchased from DDR Corp. for a little over $7 million in March of 2014. The new owners expect to spend around $4 million dollars on the redevelopment project, which could be completed by the 3rd quarter of 2014. The center, which is currently around 70% occupied, will also be renamed to The Village at Golden Gate. A 32,565-square-foot Food Lion and a 24,038-square-foot Staples anchor the 151,371-square-foot center, with new leases announced that include an antique shop and The Green Bean. In an effort to reduce competition, Food Lion also leased (but does not occupy) the 30,248-square-foot space vacated by Harris Teeter, but a new tenant is still being sought for the space.
The Village at Golden Gate is located in the Guilford – Northwest submarket, where the KARNES retail vacancy rate totaled 10.3% as of the fourth quarter of 2013. The vacancy rate in the submarket has decreased 2.9% points since the end of 2011 as net demand totaling 187,210 square feet outpaced 16,219 square feet of new supply. Retail rental rates in the submarket averaged $22.12 per square foot at the end of 2013.
Childress Klein began marketing 310,690 square feet of speculative warehouse space at Ridge Creek West I in response to the tightening warehouse market in the Charlotte region.
Construction of the new building is scheduled to begin the first week of April and should complete by the end of 2014. The building will feature a 30’ clear height, 52’ wide by 50’ deep column spacing and access to extensive on-site trailer storage that will be ideal for distributors and manufactures seeking easy access to I-77, I-485, Highway 49 and the Charlotte/Douglas International Airport.
Charlotte’s 2013-year-end vacancy rate was reported at 6.9% and was the lowest recorded warehouse vacancy rate since KARNES began tracking the market in 1988. Nearly 930,000 square feet of positive net demand was reported in the Southwest warehouse submarket through 2013 resulting in a 7.5% vacancy rate to end the year.
At 310,690 square feet, Ridge Creek West I will be the largest warehouse building under construction in the region. Steele Creek Commerce Park, also in the Southwest submarket, was the only speculative warehouse project under construction in the region at the end of 2013 and will total over 465,000 square feet when fully developed. Pre-leasing has been successful at Steele Creek Commerce Park as Building 1 (70,000 square feet) will be occupied by Kuehne & Nagel Inc. and half of the 70,000-square-foot Building 2 will be occupied by Huber + Suhner.
The Ridge Creek Distribution Center campus already boasts over 1 million square feet of distribution space but only 121,680 square feet was reported available in Ridge Creek Distribution Center IV nearing the end of the first quarter of 2014.
Andrew Jenkins, managing partner, will be representing KARNES at the 2014 ULI (Urban Land Institute) Carolinas Regional Meeting being held on January 23, 2014. Mr. Jenkins is also participating as a member of the Market Impact Council.
According to the Charlotte ULI website, this two-day event, which brings together members of ULI Charlotte, ULI South Carolina and ULI Triangle for the first time, will showcase regional opportunities and best practices in land use. The event will provide an opportunity to meet the Carolinas’ top decision-makers and industry experts from every sector of real estate and land use. This event will be held at the Westin Charlotte, located at 601 S. College Street.
About the Market Impact Council
This council will explore the opportunities created in our communities by large employers (such as corporations, universities and medical centers) and major market transactions. Discussion will center around economic development impacts that result from these employers and how developers can leverage the demand for supporting industries, housing and commercial real estate. The council will also investigate incentive programs and infrastructure requirements that are necessary to support the growth of these entities.