KARNES Tri-City North Carolina Retail 2013 Year in Review

Posted on July 21, 2014 by - 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.
KARNES Tri-City Retail Vacancy Trends
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.
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KARNES Tri-City North Carolina Industrial 2013 Year in Review

Posted on July 21, 2014 by - 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.
KARNES Tri-City Warehouse Vacancy Trends (more…)

KARNES Tri-City North Carolina Office 2013 Year in Review

Posted on July 21, 2014 by - 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.

KARNES Charlotte Office Leasing Activity

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.

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CPE Tips & Tricks: Property Traffic Analysis

Posted on December 13, 2013 by - Apartments, Asheville, Chapel Hill, Charlotte, Commercial Property Exchange, Durham, Greensboro/Winston-Salem/High Point, Industrial, Land, Office, Online Training, Raleigh, Retail, Tips & Tricks, Training, Triangle, Western NC

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Share Branded PDF Reports with Your Clients

One of the many integrated features of the KARNES CPE system is the Property Traffic Analysis function. Many users may not be aware of this powerful feature.

While users are working hard to market properties, the Traffic Analysis feature provides useful insight into property traffic data for All or a specified Property by defined time frame, where/how the property was viewed and who viewed the property.

Beyond providing property traffic details, the Property Traffic Analysis function allows the creation of a PDF report that can be emailed or printed and can also be easily customized by adding company logos and headers.  Beyond personal insight, this report creates a excellent branded marketing piece to provide to clients to illustrate listing activity, or to use during organizational meetings.

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Powerful Traffic Analysis Filters

To access the Property Traffic Analysis function, simply login to your account and click on Traffic Analysis under the Home/MyProperties tab.  From here you can filter our results with a variety of options including: Date Range, View TypeView Source and Select Property.  The Traffic Summary Graph displays total number of views by day/date based on selected filter, while the Traffic Summary Chart displays the Name, Company and Number of Views of the Top Viewers.  The Activity Chart displays the Date Viewed, Property Viewed, CPE #, Source Type, Source Name (if a member), Source Company (if a member), and View Type.

With the New Year right around the corner, utilizing the Property Traffic Analysis function is another powerful tool to add to your CPE routine to make 2014 a success!

Keep in mind that the Property Traffic Analysis feature is one of the many benefits that can only be accessed by Paid Subscribers.  If you are ready to be the latest organization or subscriber to harness the tools and features of a KARNES-powered commercial property exchange, contact our sales team today!

Lincoln Harris Adding 480,000 SF Capitol Towers at Carnegie on Former Maersk Distribution Site in SouthPark

Posted on December 13, 2013 by - Charlotte, Construction Update, Development, KARNES Perspective, Office

SouthPark Vacancy Trends 2009-3Q13

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.

Katuah Market Opens At Biltmore Station

Posted on December 13, 2013 by - Asheville, Retail, Western NC

Biltmore Station Hendersonville Road

Biltmore Station Hendersonville Road

Katuah Market  opened its 11,333-square-foot store at Biltmore Station December 18, 2013.

One of the former founders of Asheville’s Greenlife Grocery, John Swann, announced plans to open Katuah Market in February of 2013 and began preparing for its opening. The opening of Katuah Market comes on the heels of the recently completed Harris Teeter on North Merrimon in the Village at Chestnut and the neighboring Trader Joe’s during the third quarter of 2013.

Katuah Market specializes in carrying local sourced products and in-house prepared foods.

Lincoln Harris Plans New Ballantyne In University City

Posted on December 13, 2013 by - Charlotte, Construction Update, Development, In the News, Land, Office

Ballantyne Woodward

The Woodward Building (pictured above) at Ballantyne is one of two speculative buildings delivered at Ballantyne Corporate Park during 2012. Image provided by The Bissell Companies

Johnny Harris mentioned that Charlotte needed a new Ballantyne at the CRCBR’s Annual Meeting and it appears he is ready to make it happen. At least on a smaller scale.

University Investors, a company managed by Lincoln Harris, recently purchased the 24-acre parcel at 239 West Mallard Creek Church Road and Tryon Street for $3.5 million from Bank of America.

In 2005, Landmark Development Partners proposed 326,000 square feet of retail space for the site called University Crossing. Bank of America acquired the site in during the fourth quarter of 2008 and had the land zoned for up to 1 million square feet of space.

Lincoln Harris is seeking to capitalize on the site’s proximity to the future Blue Line Extension stop at JW Clay and terminal stop at UNCC and create a dynamic project that could spur the next Ballantyne in Charlotte.

Apartment Construction Continues in the Triangle with 23-story Development in Downtown Raleigh

Posted on December 12, 2013 by - Apartments, Construction Update, Raleigh

SkyhouseRaleighWith over 9,336 apartment units under construction during September 2013 in the Raleigh-Durham market, Novare Group and Beacon Partners have broken ground on Skyhouse Raleigh, a planned 23-story apartment building, in Downtown Raleigh.  The project is on a fast track completion deadline and is slated to deliver 320-units within 12-months.

The Triangle apartment market continues to attract investors, with current construction levels the highest reported in any period since 1997. The Triangle area market reports, which are prepared by KARNES and made available online at www.aptxchange.com, cover market conditions including construction, vacancy, absorption, and rental trends. Below are a few highlights from the most recent report.

  • A total of 105,477 units where surveyed during the Fall 2013 period.
  • Over the six-month period ending in September 2013, a total of 2,866 units were completed
  • A total of 9,336 units were under construction in the Triangle as of September 2013.
  • The regional vacancy rate climbed 0.4% of a point to 5.9% from the reported March 2013 vacancy of 5.5%
  • At $898, the Fall 2013 average weighted monthly rent for all apartment units in the Triangle was up $19 from the average reported in March 2013.

To find out more about the multifamily market in the Triangle Region, please visit us at www.aptxchange.com or by calling us at 800.879.7172.

In-Person KARNES Training In Winston Salem

Posted on December 9, 2013 by - Commercial Property Exchange, Greensboro/Winston-Salem/High Point

Online WebinarBrian Reece, Managing Partner and Robert Kropp, Research Assistant of KARNES, will be conducting an in-person training covering various key functions of the Triad CIE.

The training will take place Tuesday, December 10th, at the High Point Regional Association of Realtors (1830 Eastchester Dr. High Point, NC 27265).  The training will be FREE and will begin at 2pm, so please attend!

See You At The WSRAR RCA Holiday Social

Posted on December 9, 2013 by - Commercial Property Exchange, Greensboro/Winston-Salem/High Point

Brian and RobertBrian Reece and Robert Kropp will represent the KARNES Team at the WSRAR (Winston-Salem Regional Association of REALTORS®) RCA Holiday Social taking place Tuesday, December 10th, from 5:00-7:30pm at Forsyth Country Club (3101 Country Club Rd, Winston-Salem, NC 27104).

This event will be a great opportunity for Triad CIE users to ask general questions, find out more information regarding future system enhancements and upcoming training topics.

In addition to live music provided courtesy of pianist Owen Dodd, presentation of the Commercial Practitioner of the Year Award will also take place.