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.
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.
As Harris Teeter reclaims the No. 1 retailer position in Charlotte, according to the latest data by Chain Store Guide, the Charlotte Observer provides a report on the details, featuring analysis by KARNES. Read the entire article here: After store swap, Harris Teeter back at No. 1 in Charlotte area and additional retail analysis by KARNES below:
With the introduction of Publix into the Charlotte regional grocery market, the retail landscape continues to change. Historically low new retail supply over the past 2 years, which averaged approximately 262,050 square feet per year, was delivered in the Charlotte region, according to the 2nd Half 2012 KARNES Retail Report. This level of new supply was well below the average of 1.9 million square feet per year completed in the region between 2000 and 2010, allowing for retailers to focus on core locations as opposed to rapid expansions. Community and Neighborhood Centers, commonly anchored by grocery chains reported vacancy rates of 8.7% and 12%, respectively, at the end of 2012. These rates were down from the 9.3% (Community) and 12.3% (Neighborhood) reported at the end of 2010, but remained higher than the 6.6% (Community) and 7.8% (Neighborhood) reported at the end of 2008.
Andrew Jenkins, Managing Partner, KARNES
Andrew Jenkins, managing partner of KARNES was featured today on WFAE, Charlotte’s NPR News Source. Mr. Jenkins offered up his firms opinion on Publix’s bid to enter the Charlotte market and compete against Harris Teeter.
Click here to listen to the full coverage at WFAE.org
KARNES was pleased to be in attendance for the Charlotte Business Journal’s Commercial Real Estate Quarterly (CREQ) Live event this morning, which featured Johnny Harris, President and Chief Executive Officer of Lincoln Harris. Mr. Harris provided the audience with a fireside chat, conducted by the Charlotte Business Journal’s Will Boye, covering a range of topics including his involvement in the development of commercial real estate in Ballantyne, SouthPark, and Uptown Charlotte.
The keynote by Mr. Harris was preceded by a lively roundtable discussion involving the winners of the 2013 CRCBR® Deal Makers Awards, an annual awards program officially audited by KARNES. Award winners and panelist included Jensie Teague of Selwyn Property Group, Inc., Rob Pressley of Coldwell Banker Commercial-MECA, Christopher Skibinski of The Skibinski Company, Brian Brtalik of Cusham & Wakefield | Thalhimer, and Phil Brosseau, Jr. of CBRE.
The CREQ Live event is the Charlotte Business Journal’s semi-annual event that brings the Charlotte Business Journal’s Commercial Real Estate Quarterly (CREQ) publication to life. For over 20 years KARNES has been the source for the Charlotte Business Journal’s CREQ exclusive commercial real estate content and looks forward to many more years working together with the Charlotte Business Journal.
Please be sure to update your commercial real estate listings at SiteIndexCharlotte.com to be included in the next CREQ publication, which will be available on May 17th, 2013.
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 more than five years with no new office construction, the SouthPark submarket in Charlotte appears set to deliver its first new building during 2014. SouthPark, which is the Charlotte Region’s third largest suburban office market with just under 4.25 million square feet, has not seen new office construction since the third quarter of 2007, when the 125,000-square-foot CMC Morrocroft was completed.
SouthPark’s first new office property since CMC Morrocroft will be developed at Sharon Square, a mixed-use project developed by Pappas Properties which includes apartments and retail space anchored by Whole Foods. Pappas Properties plans to build a 105,500-square-foot office building that will be anchored by SunTrust Bank and is scheduled to be complete by mid 2014. SunTrust will consolidate its local operations into approximately 43,500 square feet at the Sharon Square office property.
At the end of 2012, the Tri-City markets contained a total of 105 million square feet of warehouse space and 34.8 million square feet of flex space. With 52.4 million square feet of warehouse space, the Triad market accounted for approximately 50% of the Tri-City warehouse space. The Charlotte warehouse market ranked second with 33.5 million square feet, while the Triangle market maintained 18.8 million square feet.
The 270,400 square feet of warehouse space completed in the Charlotte market during 2012 accounted for all of the new warehouse space completed among the Tri-City regions. For the Triangle and Triad markets, 2012 marked the third year in a row where no new warehouse space was delivered. The 270,400-square-foot Ridge Creek Distribution Center IV building in Charlotte was the only warehouse completion during 2012. The building, which was developed as a speculative warehouse project, completed with Averitt Express occupying 68,000 square feet. While new warehouse deliveries in the Charlotte market totaled nearly one million square feet between 2008 and 2012, the Triangle market reported only 412,940 square feet of new warehouse deliveries during the same period. New warehouse completions in the Triad market totaled 1.18 million square feet between 2008 and 2012, with all of the new construction occurring during 2008 and 2009.