NAI Carolantic Has Weathered Other Downturns

I recently heard Dr. Peter Linneman, NAI Global economist, speak about the Minefield Mentality that is Gripping the Global Economy. According to Linneman, panic and fear are keeping the economy at a standstill and a crisis of confidence is resulting in extreme stagnation. His presentation included a focus on three areas: how the economy has declined to the lowest level in years; an examination on what is impacting the market today; and a forecast of what to expect in the coming 18 months. Here are some highlights of his presentation:

• Per capita income will decline in 2009 as few are investing, taking on new opportunities, expanding their product offerings or doing transactions;
• Expect another one million lost jobs in the coming six months, 1-2% drop in absolute GDP, and a slight acceleration in retail store closings;
• Retail will skew to the non-durable goods sector, non-capital intensive sector and the lower end of the price point;
• Hospital demand, which has held up until now, will see advance bookings drop;
• The office sector will see a halt in new leasing activity amid a great deal of uncertainty. Instead of a lot of un-leased space, we will see an escalation of shadow space (leased, but not occupied);
• Vacancy, though on the rise, will occur more at the desk level, slowing recovery as companies need to fill existing space before expanding to new;
• Good news: the commercial real estate pipeline has been muted, with about 1-2% new product coming online. That, combined with few construction starts, will keep vacancy rates down.

Whether a crisis of confidence or not, we at NAI Carolantic Realty are poised to continue to assist our clients just as we have through previous downturns in the economy over the last 36 years.  Please give us a call and let us know how we can be of assistance to you, whether in the Triangle area or elsewhere in the world.

Local Market Update:
jbarnes@naicarolantic.com

Over the coming days, many of you will be receiving a postcard asking you to "Save the Date" for our 24th Annual Triangle Commercial Real Estate Conference. We hope you will plan to join us on January 21, 2009 at the RBC Center here in Raleigh when we will offer our recap of the economy and commercial real estate market for 2008 and offer our forecast for 2009. If you did not receive a card, please email Kerry Saunders at ksaunders@naicarolantic.com so we can make sure you receive an invitation. (Our conference is by invitation only.)

Special thanks to our corporate partners this year who include: Bobbitt Design Build, Dixon Hughes, Edge Office, JDavis Architects, Manning Fulton & Skinner, The Title Company of North Carolina, Wachovia and Withers & Ravenel.

Broker Profile:

Kyle Greer
kgreer@naicarolantic.com

Mr. Greer came to NAI Carolantic after selling his own network and computer consulting company, which he founded and operated for four years.  As a proven independent thinker with strong analytical skills, he is a real asset to the Company. Some of his clients include: Atlantic Tire & Service, Dairy Queen, Wake County ABC, NYLO Hotels, RSL Technologies, and Wake Technical Community College.

Mr. Greer is a graduate of the North Carolina State University College of Management with a BS in Business Management. He serves on the Board of Advisors for the Entrepreneurship Education Initiative. As a member of the Cary Chamber of Commerce, Mr. Greer co-chairs their 2007-2008 Leadership Cary Program. He is also a Board member for the Triangle Commercial Association of Realtors. Community-minded, Mr. Greer is active with the Cary Rotary Club and Young Life Ministries.

Appreciation!

A few of the many companies NAI Carolantic was able to assist in meeting their commercial real estate needs during the last few months:

Mark Everett represented Congregational Development Fund in the sale of approximately 19.12 acres of land to the Wake County Board of Education. The property is located at Rock Quarry Road and Sunnybrook Road.

 Robin Roseberry Anders represented Smith & Nephew, Inc. in leasing 26,588 square feet in the Carlisle Building in Imperial Center.

Gray Creech represented SMA Microsystems of Virginia in leasing 9,000 square feet of warehouse/showroom space in Kennedy Space Center at 6724 Old Wake Forest Road in Raleigh.

John Webster represented Integrated Project Services Corporation in leasing 6,080sf in the Southport Business Park.

NAI Carolantic Realty is pleased to announce Cheminova relocated its Regional and US headquarters from Wayne, New Jersey to the Research Triangle Park. The firm leased approximately 9,500sf of office space at One Park Drive in RTP. Robin Roseberry Anders, SIOR of NAI Carolantic Realty represented the tenant. Cheminova is a global leader in the production, development and sale of chemical plant protection products. Their global headquarters and main production facility are in Lemvig Denmark.

Featured Property: Villages of Apex

The Villages of Apex is a 202 acre project stretching from NC Highway 64 to Hunter Street and the new Apex Town Hall and Community Center. With dramatic streetscapes, tree-lined sidewalks, and village character, the Villages of Apex will offer 220,000 square feet of Class A office space, retail and outparcel development opportunities as well as 1,300 residential units, all within easy walking distance. This mixed-use project also includes such amenities as a private school starting with K-5, a dog park, fishing pond, walking trails, baseball and soccer fields. The project is developed by Apex First Development.

The first three-story, 20,000sf office building will be completed by February 2009, and pre-leasing has begun for the adjacent three-story 60,000sf class A office building as well as for the retail town center.
www.thevillagesofapex.com

For office space information, contact Robin Roseberry Anders, SIOR
919.832.0594 or email: randers@naicarolantic.com
For retail space information, contact Joaquin Canals or Kyle Greer
919.832.0594 or email: jcanals@naicarolantic.com or kgreer@naicarolantic.com

NAI Carolantic's Winning Team

NAI Carolantic Realty President, James Barnes, SIOR, and NAI Carolantic Realty broker, Kyle Greer, recently addressed an assemblage of commercial real estate professionals, students and legal representatives at a real estate symposium held at St. Augustines College, located on Oakwood Avenue in Raleigh, NC. The theme of the one-day symposium was Commercial Real Estate: Land of Opportunity. Sponsored by the statewide trade association, AAREPNC (African American Real Estate Professionals of North Carolina), the symposium is thought to be the first one of its kind held in the Triangle area. More information about the event and AAREPNC can be found at their website, www.aarepnc.com.

NAI Carolantic Realty's President, Jimmy Barnes, SIOR, was recently appointed to serve a three-year term as part of the Greater Raleigh Chamber of Commerce Executive Committee. In addition, he was named Vice Chair of the Economic Development Committee. The overall mission of the Economic Development Committee is to market Wake County as the best place for business location, retention and expansion.

Congratulations to Kyle Greer and Kerry Saunders who were recently appointed to the Triangle Commercial Association of Realtors Board of Directors. They will serve on the Board for three years.

Press Conference:

NAI Carolantic Realty hosted a press conference on Nov. 17th announcing that TrustAtlantic Bank, the wholly owned subsidiary of TrustAtlantic Financial Corporation, has signed an agreement to become the lead tenant in the building known as the Time and Temperature building located at the intersection of Glenwood Avenue and Creedmoor Road in Raleigh. The landmark building, which will be renamed the TrustAtlantic Center, will undergo significant renovations and is expected to be ready for occupancy by the end of third quarter 2009. Eric Stroud, broker with NAI Carolantic, represented the bank in their extensive search for its new headquarters location.

Pending regulatory approvals, TrustAtlantic Bank will occupy three of the five floors, constituting over 19,000 square feet, and will also operate a full service concierge-style banking office on the ground floor. The location will serve as the bank's corporate headquarters and will house the executive offices, the commercial banking team, and key operational and staff functions.

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

Company Profile:

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

• Eighteen Brokers with an average of ten year's 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