Industrial sector builds despite high vacancies

Posted on October 17, 2009 by - Charlotte, In the News, Industrial

Among Charlotte-area warehouses and distribution centers, vacancy rates are rising. Rents are falling. Yet two local developers are betting now is the time to build more than 300,000 square feet of new industrial space…Charlotte’s industrial market has fared relatively well during the recession compared with the office and retail markets because developers didn’t overbuild, said Karnes analyst Andrew Jenkins. One reason is developers grew cautious when industrial vacancy rates peaked at 19.2 percent in 2003, Jenkins said, “scaring everyone into being careful where they built.”
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Waxhaw may get new mix with a town center project

Posted on September 19, 2009 by - Charlotte, In the News, Retail

September 19, 2009
Charlotte Business Journal
A Matthews developer may do something next year that has been rarely accomplished in the Charlotte area in this economy: Start construction of a mixed-use commercial center…Having Waxhaw sign on to the project may be the key to finding financing, says Andrew Jenkins, managing partner of real estate analysis firm Karnes Research Co. in Charlotte. Such an agreement “would ultimately be the main draw for the project,” he says. The Commons at Wesley Chapel, a commercial center with a Target store, may provide competitors for small shops, Jenkins says.
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Triad commercial vacancies stable in Q2

Posted on August 21, 2009 by - Greensboro/Winston-Salem/High Point, In the News, Retail

August 21, 2009
Triad Business Journal
Vacancy rates for industrial, office and retail real estate in the Triad were mostly stable in the second quarter compared to the first quarter of this year, according to the latest set of reports from Karnes Research…Retail vacancies crept up in the quarter to 10.5 percent from 10.3 percent in the first quarter, the company reported. Forsyth County’s vacancy rate was higher at 11.7 percent, compared to 9.9 percent in Guilford County. The negative net demand was mostly due to the closing of locations by Peak Fitness, Goody’s and Linens N Things, the report said….
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Sales of office, retail and industrial property plunge in Charlotte

Posted on August 14, 2009 by - Charlotte, In the News, Industrial, Office, Retail

August 14, 2009
Charlotte Observer
Two reports on Charlotte’s commercial real estate market released this week show a continued decline in demand for commercial space as employers contract and retailers close up shop amid weak consumer spending….Net absorption, or the amount of space occupied minus the space vacated, was negative 134,800 square feet during the first half of this year for Charlotte-area office space, according to Karnes Research. Last year, net absorption was a positive 670,800 square feet. The two years prior it was around 1.4 million per year. “Demand is down, a lot,” said Karnes analyst Andrew Jenkins.

Also noteworthy: No new buildings were completed in the suburbs during the first half of this year. That hasn’t happened since 1992, Jenkins said. Last year, developers put 2 million square feet of new space on the market, all of it in the suburbs, according to Karnes. “It’s a good sign the developers have pulled back and are aware of what was going on,” Jenkins said. “They’re tightening belts, and it’s hard to find financing to build new buildings. At least they recognize this is not a good time to be delivering speculative space.”
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Meridian center in Charlotte’s University Research Park is taken back by Hartford Financial

Posted on July 31, 2009 by - Charlotte, In the News, Office

July 31, 2009
Charlotte Business Journal
The Meridian Corporate Center is officially out of receivership and under new ownership. The owner of the 1.9 million-square-foot University Research Park office complex handed the property over to its lender, The Hartford Financial Services Group Inc., earlier this month in lieu of foreclosure. The transaction was valued at $110 million…Although the litigation between Hartford and Cerberus continues, the Meridian Corporate Center likely becomes more marketable now that it’s out of receivership and has clear ownership, says Andrew Jenkins of Karnes Research Co. And given the current economy, it’s unlikely that Hartford would be able to find a buyer for the office park in the short term anyway, he says.
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Riverwalk gets a boost in deal with Rock Hill council

Posted on July 17, 2009 by - Charlotte, In the News, Retail

July 17, 2009
Charlotte Business Journal
The developer of Riverwalk, a planned $600 million mix of businesses, homes and shops, has a new partner that could help get the stalled project near the Catawba River off the drawing board….Andrew Jenkins, managing partner of Karnes Research Co., a real estate consulting firm in Charlotte, says big projects such as Riverwalk are viable if financing can be found. The banks and big investors need some positive economic news to bring them back to the real estate development market. “So if (developers) are able to convince investors that their project is a long-term project with modest returns and a less risky investment to, say, the stock market, there should always be opportunity for larger projects in the future,” Jenkins says.
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Fed offering space in Charlotte office

Posted on June 25, 2009 by - Charlotte, In the News, Office

June 25, 2009
Charlotte Observer
The Charlotte branch of the Federal Reserve Bank of Richmond is looking to become a landlord. The Fed has chosen Percival McGuire Commercial Real Estate to lease 34,000 square feet within its uptown office….Real estate analyst Andrew Jenkins with Karnes Research said the Fed may have trouble finding a taker in this market. The vacancy rate for office space of all types is rising and average lease rates have been falling in an economy where tenants are skittish about signing long-term commitments. The building’s age could also hurt, particularly as about 3 million square feet of new office space is due to come on the market soon…Still, Jenkins said, some companies, such as those that work with both of Charlotte’s major banks, may prefer to be in what he called a “bank-neutral” building…
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Orvis store coming to Phillips Place

Posted on June 16, 2009 by - Charlotte, In the News, Retail

June 16, 2009
Charlotte Observer
Phillips Place has snagged a new tenant: luxury sporting goods retailer Orvis Company Store, a relative coup in a recession that will soon add a vacancy to the high-end shopping center…Retail vacancy rates in the Charlotte area have been steadily rising since hitting a low of 4.9 percent in 2004, according to Karnes Research Co. Still, the latest rate – 6.9 percent as of the end of 2008 – is better than in previous downturns, said Karnes real estate analyst Andrew Jenkins. In 2002, area vacancy rates hit 7.6…
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Clouds over West Village

Posted on June 4, 2009 by - In the News, Office, Triangle

June 4, 2009
News and Observer
On the surface, West Village has lived up to its promise. Its offices, apartments and restaurants, carved out of former Liggett & Myers Tobacco Co. factories, are teeming with workers, renters and diners, who crave more offerings in this reviving downtown…Ninety-nine percent of the 455 West Village apartments are full, and 80 percent of its completed offices are leased. An Amtrak stop is nearing completion, and other prospective tenants abound. The performance is remarkable, considering that average occupancy at apartment complexes in the region fell to a six-year low of 89.7 percent in March, according to Karnes Research of Raleigh. Or when you consider that many of West Village’s offices became available just as the economic slowdown began to pinch demand. Indeed, leasing at West Village has helped downtown’s office vacancy rate drop each quarter in the past year, bucking the regional trend.
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40 Under 40: Andrew Jenkins

Posted on May 20, 2009 by - Charlotte, In the News

40 Under 40

40 Under 40

Andrew Jenkins, managing partner of KARNES, is acknowledged by The Charlotte Business Journal as one of the region’s 40 Under 40. This program recognizes 40 individuals, under the age of 40, who are proven performers in their respective industries and communities. These dynamic up and comers have shaped our community in ways that have made the Charlotte region a better place to do business and live. Winners will be profiled in a special section of the June 12 Charlotte Business Journal issue.
View all 40 winners for 2009