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November 20, 2013
The Hottest Tenants in 2014
Where will the mojo come from in Charlotte office leasing in 2014 and beyond? Vision Properties is betting on larger corporate users--with some tech thrown in for good measure. (It adds a little flavor.)
"We feel the main drivers of absorption in Charlotte will continue to be Fortune 1000 companies who're looking for large floor plates and high parking ratios for their back office staff," says Vision Properties director of acquisitions Anthony Arena, snapped with VP of asset management Will Bertolero. Anthony also tells us that he's starting to see startup tech firms emerge in Charlotte, and "our hope is over the coming years, a tech cluster will begin to take shape here." (Tech follows tech, like a pack of wolves or teenagers.)
Recently, Vision Properties acquired the 326k SF Carmel Crossing office park in South Charlotte, its latest deal in the city (last year it bought Coliseum Centre and has since sold parts of it). There, Vision wants to appeal to tenants by offering creative lease structures that will grow with those companies as they need more space. The complex will also attract MetLife's service providers who need to be near them and want to be in a park that has similar amenities and highway access, "yet is at a lower price point," he says. (We tried moving so that we could be close to someone... who knew "criminal stalking" was even a real crime?)
Hospitality RevPARs Its Engines
The local hospitality market is on track for a better year than last, PKF Hospitality prez Mark Woodworth tells us (left, with his son, climbing Mount Kilimanjaro). That's saying something, considering that hotel metrics got a serious boost in 2012. According to STR, RevPAR in Charlotte increased by 13.4% in 2012, when the city hosted the DNC, he says. Building on that jump, RevPAR should increase by about 1% in 2013, he adds, and PKF's soon-to-be released updated forecast for the city calls for demand growth of 2.2% over 2012, well above the forecasted 1.7% increase in supply for the year.
Other North Carolina hospitality markets are also doing well. In Asheville, RevPAR is up 19.4% year-over-year (as of August), driven by growth in tourism, reports STR. (Everybody wants to enjoy the "Shindig on the Green.") Developers have taken note. Recently, Choice Hotels inked a deal with FIRC Group to develop a 141-room Cambria Suites in the city. According to Choice Hotels SVP Michael Murphy, the company is experiencing strong momentum for bringing Cambria Suites to new markets, such as Asheville. The property will be the company's second in North Carolina.
This Morning at Greenbuild
This morning, we hit the floor at Greenbuild, the USGBC's annual expo, being held this year in Philly. Within a few minutes, we ran into Rob Watson (right), aka "the Father of LEED." (Not to be confused with the Pope, who is the leader of fathers.) He was a founding chairman of the USGBC and even coined the term LEED back in '96. These days, he's running ECON Group, a firm formed this year that helps buildings remain sustainable after certification. He was joined by Dynamic Air Quality's Martin Cummins and SKF Global's Steve Friedlander.
The folks at the USGBC tell us over 20,000 are expected to pack in the Pennsylvania Convention Center in Center City. If you're on the floor today or tomorrow, make sure to give our DC reporter Chris Baird a shout!
Roofs for Troops Comes to Charlotte
Snapped at the Monday Night Football matchup between the Carolina Panthers and the New England Patriots: Nehemiah Community Reinvestment Fund (NCRF)'s Darrell Teat and recently widowed Army veteran Kira Ortega, with her son Caleb, just after she received keys to her new home in Charlotte. California-based NCRF, which makes short-term loans to create or preserve affordable multifamily and single-family housing nationwide, established Roofs for Troops last year to provide residences for veterans. Roofs for Troops facilitated the donation of the Bank of America property and coordinated home renovations with Charlotte-area contractors. This is the org's first home donation in partnership with Bank of America and the National Community Stabilization Trust. (Factor in a huge Panthers win and it was pretty good night.) Photo: NCRF
Central Pointe Shoots for RPI
Ginkgo Residential CEO Phil Payne is snapped here giving members of Young Real Estate Professionals a walk-through of the 336-unit Central Pointe in Charlotte yesterday. Ginkgo acquired the property in January for $8.5M and is currently undertaking a substantial rehab. Not just any rehab, Phil points out, but one that focuses on Responsible Property Investment, which emphasizes improving energy-efficiency of middle-market rental housing in a way that improves operating returns. The demand for middle-market properties has gone up, but the supply hasn't, and RPI is a way to help keep such properties viable, he says.
Turkey, ham, or ostich for Thanksgiving? Send ideas, suggestion, and gravy recipes to dees.stribling@bisnow.com.
