February 2, 2010
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25th Annual Triangle Commercial Real Estate Conference Chairman's Report:Steve Stroud, SIOR sstroud@naicarolantic.com We were pleased to welcome a record crowd of over 1,800 invited business and community leaders to our 25th Annual Triangle Commercial Real Estate Conference held in Raleigh on January 13th at the RBC Center. Twenty-five years ago, we realized that the best way to assure our clients' success was to inform their decisions with the highest quality of information about the Triangle real estate market and its history. With that in mind, we set out to create a uniquely valuable resource - a comprehensive database of market research, to be updated annually. Nothing else we have done has been more important in helping us understand the history of our region, and thus avoid repeating the mistakes of We want to especially thank our corporate sponsors for their support in helping make the event possible: Bobbitt Design Build; Edge Office; JDavis Architects; Manning Fulton & Skinner; The Title Company of North Carolina; TriSure; Wachovia, a Wells Fargo Company; and Withers & Ravenel. Now more than ever, we're helping keep our region first and foremost in the minds of businesses looking to expand or relocate their operations from around the world. In that effort, we are bolstered by NAI's global team of over 5,000 professionals in 325 offices in the US and 55 countries. Last year NAI Global handled thousands of transactions totaling over $45 billion, and we can help you transact deals anywhere in the world. If we can be of assistance to you and your company as you evaluate your real estate position, please give us a call at 919-832-0594 or email us at questions@naicarolantic.com. Be sure to visit our blog at www.naicarolanticblog.com as we continue to share information that may be of interest to you.
"We Found Bottom", according to our conference guest speaker Dr. Peter Linneman, NAI Global Economist and the Albert Sussman Professor of Real Estate, Finance, and Public Policy at the Wharton School of Business, the University of Pennsylvania. Dr. Linneman is widely recognized as one of the leading strategic thinkers in the real estate industry. Outlining his view of the national economy, Linneman stated, "There is no doubt that capital markets are rebounding, as witnessed by the nearly 65% bounce in the stock market, and the greatly narrowed spreads on LIBOR, high-grade corporate debt, and more recently, junk bonds. The process of price discovery always occurs first in the public markets, where assets are freely and frequently exchanged between third parties, with private markets lagging 12-18 months. As a result, we expect private asset pricing, including that of commercial real estate, to begin rebounding in the second and third quarters of 2010." I think everyone As in the past, I reviewed the 2009 commercial real estate landscape for the Triangle and offered our forecast for 2010. I believe as the tailspin ends for the residential markets, our commercial real estate market will continue to suffer with loan write-offs, decreasing values and reductions in cash flow. The weak economy and slowly recovering job market will not help the situation. However we all know, there's not a better place to be than the Triangle area. Our adaptability has been a proven reason we always rebound before other areas. In a market of over 237 million square feet of office, multipurpose and shopping center space, nearly 31 million square feet remained vacant at year-end. Vacancy rose in the office and shopping center sector with the multipurpose sector maintaining at 16%. Although leasing absorption will continue to be minimal, with the reduction in construction, (the lowest number of starts in the last 15 years), we expect vacancy to remain stable. There could be some reduction in vacancies in some submarkets if a few big deals that are circling decide to make the Triangle their home. We expect investment opportunities to remain available, however financing will be challenging and buyers and sellers will continue to struggle to determine true value. We don't expect to see any new development until 2011. Please visit our website at www.naicarolantic.com and go to 'Market Research' to see the slides from my presentation as well as Dr. Linneman's presentation.
NAI Global: With over 5,000 real estate professionals in over 325 offices in 55 countries worldwide, NAI Global serves corporate, institutional and government clients through its strategically located offices in major, secondary and tertiary markets. |
Visit our Blog: www.naicarolanticblog.com and sign up to stay informed of real estate issues impacting the Triangle area. If you are interested in receiving a DVD of the 25th Annual Conference, just send an email to questions@naicarolantic.com to request a free copy. Featured Properties: For Lease
This 9,534 square foot flex/warehouse building is available at $6.00/sf, NNN with tenant improvements negotiable. It is located just off US 1 in Apex and close to all major arteries. There is one dock-high door, one grade-level door, and 19 parking spaces. The dock area can accommodate approximately 20 more parking spaces if needed. The owner would consider a lease with option to purchase. For additional information, please contact Dee Creech Osborne, SIOR at dcreech@naicarolantic.com. Click to view flier. For Sale
This property is situated on the beautiful rolling land of Booth Mountain with gorgeous vistas and a great Chapel Hill address just south of Governor's Club. All entitlements are in place for 180 lots on 311 acres (94 lots are finished). To be sold 'as is, where is'. For more information, please contact Jim Adams at jadams@naicarolantic.com. Click to view the flier. NAI Carolantic's Winning Team Steve Stroud, Chairman of NAI Carolantic was recently awarded the Top
Land Sales of the Decade by Triangle Business Journal during their
annual Space Awards ceremony held on January 28th at North Ridge Country
Club in Raleigh. The award was given for the land assemblage of two
parcels near the intersection of I-540 and NC 401 North totaling 413
acres. The transactions totaled $39 million. The property was
purchased by Commercial Properties Realty Trust The event also highlighted significant commercial real estate transactions completed in 2009. NAI Carolantic broker, Dee Creech Osborne, SIOR, was presented with the Top Flex Transaction Award for the Catalent Pharma Solutions lease at Southport Business Park. The deal was valued at $10.6 million over six years. Dee represented Southport Business Park which is located on Aviation Parkway, just off I-40 near RDU Airport.
We are pleased to welcome Andrew Moss Withers who joined NAI Carolantic in 2009 after previously being an intern with the company during his MBA schooling at NC State University. His commercial real estate experience began many years' prior while working with Preston Development Company on their Southport Marina renovation project and through the management of residential properties statewide. Moss brings new ideas to the business and has quickly established himself as a dedicated broker working with clients throughout the Triangle as well as in Greensboro. He specializes in leasing and investment properties. Mr. Withers will complete his MBA soon with specialties in Business Renovation, Administration and Entrepreneurship. He completed his undergraduate work at Appalachian State University with a Bachelor of Science in Business Administration where he triple majored in Economics, Finance & Banking, and Risk Management & Insurance. An avid volunteer, Mr. Withers donates time to the Cary Family YMCA "We Build People" program as well as being a Buddy for the Miracle League of Raleigh. He is a member of Hope Community Church. Company Profile: NAI Carolantic is the Raleigh/Research Triangle area's leading commercial real estate firm
Established in 1972, NAI Carolantic is a member firm of NAI Global, the leading international provider of commercial real estate services and solutions.
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the past. I am pleased that the annual conference along with our annual report is only one of the many ways that NAI Carolantic Realty has taken an active role in the community for over 38 years.
Local Market Update:
appreciated hearing what Dr. Linneman had to say.
of Baton Rouge who is
proposing a $750 million mixed-use development called 5401 North. 
Broker Profile:
NAI Carolantic Realty, Inc.3605 Glenwood Avenue, Ste. 100
Raleigh, NC 27612
p: 919.832.0594