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.
2013 CCIM Market Forecasts
The 2013 CCIM Market Forecasts were a great success and it was our pleasure to get a chance to see familiar faces along with new ones during the past two weeks at the 2013 CCIM Market Forecasts in Greensboro, Charlotte and Cary.
Each of the forecasts focused on the opportunities upcoming in the North Carolina market with an emphasis on how education and workforce development will continue to spur growth in the state.
In addition to a positive outlook for 2013, KARNES was pleased to report that each of the commercial real estate sectors reported positive growth during 2012 in our Tri-City North Carolina Commercial Real Estate Market Report. If you were unable to attend one of the forecasts and would like a copy of this report please look for us at one of the many upcoming networking event during 2013.
Below is an executive summary of our report’s key findings:
After reporting a historically low level of new office construction totaling 354,769 square feet in the Charlotte, Triangle, and Triad regions during 2011, new office construction increased significantly during 2012 as a total of 1.48 million square feet was completed in the Tri-City regions. New office supply during 2012 was most pronounced in the Charlotte region, where 987,415 square feet of new space was delivered. The majority of the new office space completed in the Charlotte region was reported at the Ballantyne Corporate Park, where more than 800,000 square feet was completed during 2012, including two, 276,120-square-foot speculative office buildings.
Despite increased supply-side pressures, the vacancy rate in the Charlotte market decreased 1.1% points as net absorption (demand) totaling 1.34 million square feet outpaced new supply during 2012. With a year-end 2012 rate of 17.3%, Charlotte reported the highest vacancy rate among the three markets, with the Triangle reporting the second highest rate at 15.6%. The year-end 2012 Triangle vacancy rate was 0.5% of a point lower than the year-end 2011 rate as net absorption totaling 466,938 square feet outpaced 196,942 square feet of new supply. The Triad region reported a 0.6% of a point decrease in vacancy during 2012 as net absorption totaling 371,513 square feet outpaced new supply totaling 297,000 square feet. At 15.2%, the 2012 vacancy rate was the Triad’s lowest reported rate in over five years.