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.
Posted on July 21, 2014 by info4karnesco - Charlotte, Commercial Property Exchange, Construction Update, Greensboro/Winston-Salem/High Point, KARNES Perspective, KARNES Tri-City Report, Office, Raleigh, SiteIndex, Triad CIE, Triangle, Triangle CPE, Western NC, WNC CPE
A combined total of 117 million square feet of office space is located within the Tri-City area. Totaling nearly 50 million square feet at the end of 2013, the Charlotte market is the largest of the three North Carolina office markets. The Triangle market ranked second with 41.4 million square feet of office space, while the Triad maintained 25.7 million square feet of office space. After reporting a total of 1.48 million square feet of new office construction in the Charlotte, Triangle, and Triad regions during 2012, new supply came to a halt during 2013 and marked the first time in over 25 years that no new office space was completed in the combined Tri-City region.
The decrease in supply-side pressure allowed for gains to be reported in each of the Tri-City markets. The Charlotte market reported the greatest gains during 2013 as net absorption (demand) totaling 1.3 million square feet resulted in a 2.5%-point decrease in the office vacancy rate. The year-end 2013 rate of 14.8% in Charlotte was the lowest vacancy rate among the three markets, with the Triangle and Triad both reporting a rate of 15.0%. The year-end 2013 Triangle vacancy rate was 0.6% of a point lower than the year-end 2012 rate as net absorption totaled 204,615 square feet. The Triad region reported a 0.2% of a point decrease in vacancy during 2013 as net absorption totaled 162,219 square feet.
With net absorption totaling 1.3 million square feet, the Charlotte region reported the highest level of net demand during 2013. The Triangle region ranked second in terms of office demand during 2013 with net absorption totaling 204,615 square feet. The Triad market reported 162,219 square feet of net demand during 2013. Four office tenants occupied over 100,000 square feet in the Tri-City markets during 2013, with the largest tenant occupancy reported at Ballantyne – Gragg Building, where MetLife took 284,212 square feet. MetLife also accounted for the fourth largest gain as the company took 104,747 square feet of space at Ballantyne Three. Ballantyne Corporate Park also accounted for the largest contraction during 2013 in the Tri-City markets as AXA Equitable Life Insurance relocated from 152,000 square feet at Ballantyne – Rushmore One to 141,647 square feet at Innovation Park Building 202.
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.
Join Managing Partner, Brian Reece, as he presents commercial and office development trends at the Triangle J Council of Governments Annual Development Review Update. Informal discussions will take place following presentations.
According to the Triangle J Council of Governments, the Smart Growth Committee invites elected officials, municipal and county staff, Planning & Zoning Board members of the business and academic community and others who are interested in development patterns that sustain economic development and a clean, healthy environment to join with them in this program.
The event will take place Tuesday, February 18th from 2-4PM at the Triangle J Council of Governments (4307 Emperor Blvd., Durham)
SouthPark Vacancy Trends 2009-3Q13
The 13-acre site that once housed the 284,000-square-foot Maersk Distribution Services building will now include two, 10-story office buildings totaling 480,000 square feet proposed by Lincoln Harris called Capitol Towers at Carnegie.
JLB SouthPark LLC, purchased the site for $21 million during the second quarter of 2012 and began demolition of the building in preparation for construction of up to 591 apartment units.
Lincoln Harris will purchase half of the site to build the speculative 240,000-square-foot buildings.
As of the third quarter of 2013, the SouthPark office submarket totaled nearly 4.25 million square feet with a vacant rate at 10.5%. The 86,754-square-foot Sharon Square office project that SunTrust Bank will anchor was the only office project under construction in the SouthPark submarket during the third quarter of 2013. When completed, Sharon Square will be the first standard office building delivered in SouthPark since One Piedmont Town Center and Two Piedmont Town Center, which have maintained nearly 100% occupancy levels since their completion in 2005/6.
Andrew Jenkins, managing partner of KARNES was featured yesterday on WSOC TV Channel 9 News regarding Portman Holdings’ plan to develop an 15 story office building in Uptown Charlotte. Click here to see the full video or click here for the article. For more information on the Charlotte Office Market, please visit www.siteindexcharlotte.com for office availabilities and office analysis. Here are some highlights from the most recent Charlotte Office Market Report, provide by KARNES:
Posted on April 18, 2013 by info4karnesco - Charlotte, Commercial Property Exchange, Construction Update, Greensboro/Winston-Salem/High Point, In the News, Industrial, KARNES Perspective, Office, Raleigh, Retail, Triangle
Andrew Jenkins, managing partner of KARNES, was a speaker today at the Appraisal Institute 2013 Real Estate Valuation Conference, which took place in Charlotte. The panel event featured various industry experts including Mark Vitner (Senior Economist, Wells Fargo), Roger Cobb ( Broker, Selwyn Property Group), Jon Morris (Broker, Beacon Partners), and Henry Breaux (Broker, The Providence Group).
Mr. Jenkins’s discussion provided an insight into commercial market data, analysis and trends, from the largest regions across North Carolina.
Click here to download a PDF version of the presentation and read on for a transcript of the presentation’s key points:
Tri-City Market Overview
April 18, 2013
Presented by Andrew Jenkins, Managing Partner, KARNES
Tri-City Market Overview Introduction
- KARNES began producing the Tri-City Commercial Real Estate Market Report in 2012 in an effort to bring a standardized analysis method across the state.
- The intention of the report is to provide an annual review, at a high level, of the commercial markets in the three major NC regions.
Posted on April 18, 2013 by sales4karnesco - Charlotte, Construction Update, Greensboro/Winston-Salem/High Point, In the News, Industrial, KARNES Perspective, Office, Raleigh, Retail, Triangle, Western NC
Andrew Jenkins, managing partner of KARNES, will be a speaker at the Appraisal Institute 2013 Real Estate Valuation Conference, taking place today in Charlotte. According to the Appraisal Institute’s website, this a panel event where each panel member will have a topic to discuss and then there will be time for comments, questions, and answers. At the event, attendees will hear a range of topics regarding national, regional, local economic trends in various industries from experts in the field that include Mark Vitner (Senior Economist, Wells Fargo), Roger Cobb ( Broker, Selwyn Property Group), Jon Morris (Broker, Beacon Partners), and Henry Breaux (Broker, The Providence Group).
Mr. Jenkins’s discussion today will provide insight into commercial market data, analysis and trends, from the largest regions across North Carolina.
The event is being held on Thursday, April 18th from 8:30am-5:30pm at the Charlotte Marriott Executive Park, located at 5700 Westpark Dr.
Brian Reece, managing partner of KARNES was featured today on News 14 Carolina following the Downtown Raleigh Alliance presentation on the state of the Downtown Market. Click here to see the full video or click here for the article. For more information on the Downtown Raleigh Office, Industrial, and Retail Markets, please visit www.trianglecpe.com for commercial availabilities and analysis. To find out more about the multifamily market in Downtown Raleigh or the Triangle Region, please visit www.aptxchange.com. Here are some highlights from the most recent Triangle Apartment Market Report, provide by KARNES and www.aptxchange.com: