On April 23rd 2016 the North Carolina CCIM Chapter held a Market forecast for the Triangle area of North Carolina. There were over 150 Commercial Real Estate Brokers, lenders, and other professionals in attendance. Here are some discussion points from this event:
- The Triangle is still growing at a rapid pace and housing demand continues. We gain approximately 63 people every day with 21 of those being births.
- Accolades continue for this market. The combination of the strong businesses of the Research Triangle Park combined with the Government and State jobs and the top rate Universities makes the Triangle a great place for future long term growth.
- Multifamily properties continue to bring large numbers of units into the market every year as the Millennial generation chooses to rent vs buy . Urban growth with more walkable communities continue to demand higher rents.
- Office properties in the core district are at very low vacancies and approximately 42% of the current office space in the pipeline or under construction is pre-leased.
- Industrial properties have also experienced a large amount of absorption last year and 60% of the planned projects are pre-leased. E-Commerce and Amazon are causing significant shift in the way distribution of products to consumers is handled.
- Single family land is in high demand right now.
- Lending volumes are up but are showing signs of slowing.
- Interest rates are remaining low for the time being but will slowly start to creep up.
The Triangle continues to be a great place to invest in Commercial Real Estate and opportunities for returns above 5-6% without taking on too much risk are rare. At the end of my every day I review what new has come on the market in the Triangle and determine if it is a fit for my buyer and developer clients. Buyers and investors need a broker that can also mine the market for off market opportunities as well.
Pleas contact me if you are interested in acquiring property in the Triangle or would like to discuss the market dynamics here.
Dan Smith