Real Estate Investment Opportunities Today

According to NAI Global Economist, Dr. Peter Linneman, the investment environment for real estate today is very different from the early 1990s.  Then it was a weak demand with excessive speculative development.  We know buildings came online into a weak economy with little or no pre-leasing creating a large "pool of highly leveraged properties with extraordinarily high vacancy rates".  Then there was US regulatory policy shutting down lenders, bank regulators aggressively forcing solvent lenders to take write-downs and to foreclose on stressed developments.  There were few sources of real estate capital and only a handful of small REITS and private equity funds.  In short, a lot of properties were on offer to a very small group of bidders.

Things could hardly be more different today.  According to Linneman, first there are many large and well capitalized REITS.  There are many real estate private equity funds, and in addition, large sovereign wealth funds in the Middle East, China, Norway and other countries, so far deeper pool of capital availability.  The real estate problem today is the dramatic shortfall in demand caused by the sudden loss of 8.4 million jobs.  The opportunity today is to purchase properties in the belief of a stronger recovery than consensus underwriting.  "If you have the conviction of strong economic growth, as well as capital, and act on your belief, this is a great window of opportunity," said Linneman.

We believe there is a great window of opportunity and would welcome a time to discuss your possible options whether looking to dispose of property or to invest in real estate.  We can provide a free market analysis of your commercial real estate, so please visit our website at www.naicarolantic.com and register to have one of our brokers complete a report for you.  We look forward to working with you. 

Be sure to visit our blog at www.naicarolanticblog.com as we continue to share information that may be of interest to you.

Local Market Update:
Jimmy Barnes, SIOR
jbarnes@naicarolantic.com

On June 8, the NC Department of Commerce’s Policy, Research & Strategic Planning Division released its monthly Overview of North Carolina’s Economy for May 2010.  Among the findings:  North Carolina’s unemployment rate decreased to 10.8%; the number of employed workers and the labor force increased.  Non-farm employment increased; five of 11 industry sectors increased in employment from last month.  Closings/layoffs decreased in April and were below the four month and 12-month averages.  Existing home sales increased from last month and last year by 19% and 33% respectively.  New housing units authorized by building permits, an indicator of future construction, were down 11% from last month, but are up nearly 6% from a year ago.

The Department of Commerce also tracks announced and planned jobs and investment across the state on a quarterly basis.  The first quarter of 2010 shows significantly more announced jobs than this period last year, but also significantly less investment.  There were 227 projects assigned from January 1-July 2, 2010 with 63 projects actually announced.  Over 8,500 jobs were created with a capital investment of $1.43 billion.

It is clear the real estate industry’s success is tied directly to the economy’s ability to recover.  We continue to be optimistic.  Please give us a call at 919-832-0594 or email us at questions@naicarolantic.com.

Welcome Byron Bryan

We are pleased to have had Byron Bryan intern with us this summer.  Byron is a rising senior at UNC-Chapel Hill.  Byron recently wrote an article for our blog.  Here is an excerpt:

"My interest in commercial real estate is quite new, growing from my attendance of the 25th Annual Triangle Commercial Real Estate Conference this past January. It wasn’t that I found the 2010 market forecast particularly inspirational, but the fundamental facets of the real estate business drew me in. I liked Steve Stroud’s characterization of real estate as a finite, non-renewable resource that would prove recession proof in the long term, and the event left me wanting to learn more."  Visit www.naicarolanticblog.com to read the entire article.

Company Profile:

NAI Carolantic is the Raleigh/Research Triangle area's leading commercial real estate firm
 

• Seventeen Brokers with ten having more than 20 years of experience
   
• Full-service Property Management Division
   
• Experienced Marketing & Research Division

Established in 1972, NAI Carolantic is a member firm of NAI Global, the leading international provider of commercial real estate services and solutions.

• Search our property database
   
• Learn more about NAI Carolantic Realty

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.

• Learn more about NAI Global

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
Office/Warehouse Space
Pine Hill Business Park
3521 Schieffelin Road
Apex, NC 

Pine Hill Business Park has three buildings totaling approximately 74,000 square feet.  The Park is located in close proximity to US 1 in Apex and only 9 miles from the Research Triangle Park.  There are currently two units available.  One is 1,625sf of office/warehouse space with 2 private offices and one drive-in door.  The second unit is 2,275sf with five private offices and one dock door.  Signage is allowed on the building.

For additional information, please contact Gray Creech at gcreech@naicarolantic.com. Click to view flier.

For Sale
Industrial Land
9824 Fayetteville Road 
Raleigh, NC

This 51.14 acre industrial land tract is located on Fayetteville Road with frontage on Hwy. 401 South.  A signalized light access is available with two ingress/egress points from both north and south-bound traffic.  The property was recently re-zoned to HC, and is one mile from Wake Tech Community College and the proposed I-540.  The property is listed for $1,750,000.

For more information, please contact Moss Withers at mwithers@naicarolantic.com. Click to view the flier.

Recent Transactions:

Select sales and lease transactions handled by NAI Carolantic brokers over the past few months:

• T516, LLC purchased a 20,000sf building located at 516 New Hope Church Road in Raleigh.  Jimmy Barnes, SIOR represented the building owner in the transaction.
• Neuronex, Inc. located at 9001 Aerial Center Parkway in Morrisville.  Robin Roseberry Anders, SIOR handled the transaction.
• Newport Computer Services located at 627 Distribution Drive in Keystone Park in Morrisville. Ed Brown, SIOR, CCIM handled the transaction.
• Catalent renewed their lease at 120 and 140 Southcenter Court in Southport Bubsiness Park.  Dee Creech Osborne, SIOR handled the transaction.
• Page Plus, Wireless NC & Amerizon Wireless located at 6204 Damiler Way in Raleigh.  Joaquin Canals handled the transactions.
• Bank of North Carolina in the purchase of a building located at 4525 Falls of Neuse Road.  Mark Everett handled the transaction.
• IMI Inventory Management Company located at 1053 E. Whitaker Mill Road in Raleigh.  David Stroud and Joaquin Canals handled the transaction.
• William Douglas Property Management located at 3716 National Drive in Raleigh.  Scott Handley handled the transaction.
• Mutual Distribution Company renewed their lease at 1053 Whitaker Mill Road in Raleigh.  David Stroud handled the transaction.
• Southern Fastening Systems located in 5608 Spring Court in Raleigh.  Moss Withers handled the transaction.
• Contemporary Modern Concepts located at 7010 Glenwood Avenue in Raleigh.  Gray Creech handled the transaction.
• Smart Momma Baby Gear located at 8601 Glenwood Avenue in Raleigh.  John Webster handled the transaction.
• Journey Church located at 3508 Spring Forest Road in Raleigh.  Richard Hibbits handled the transaction.
• Avante Physical Therapy located at 4020 Wake Forest Road in Raleigh.  Jake Plotkin handled the transaction.
• KCD, Inc. located at 2114 Atlantic Avenue in Raleigh.  Bryant Stoneham handled the transaction.
• Computaz Digital Solutions leased space at 3811 Junction Boulevard in Raleigh.  Kyle Greer handled the transaction.