On May 11, 2017, ULI Charlotte convened ULI Spring Meeting attendees with local members and attendees to discuss information shared in Seattle and how it applies to our businesses.  Some of the insights shared included:

• Capital Markets are cautiously optimistic; more disciplined in business this time around
• Retail impact:
  • Less impact on local “necessity” stores – coffee shops, hair, nail salons
  • Less impact on low and high price point stores – e.g. Dollar Stores is already used to operating at a slim margin/high volume; Nordstrom is known for customer service
  • Biggest impact on midpoint stores – 86,000 stores expected to close in 2017; belief is that there is an oversupply of retail
  • 10-15% ecommerce growth per year – challenges are there are small margins. Amazon shared that their margins are better in technology services
• Experience-Side of Retail – Food and Beverage
  • It is the unique experience that drives traffic
  • Restaurants can be up to 30% of retail center
  • Development encompasses more art and glass/windows; requires more design
  • Flexibility is key for shifting trends of retailers
  • More collaboration and pop-up events
• Office in Seattle – intentionally keeping an urban feeling throughout the community.
• Seattle embraced diversity (new and old money); they are accepting and welcoming people; adding grit
• Corporate relocation – Weyerhauser moved to smaller space and moved to where the talent pool is located (downtown Seattle); GE downsized and created more flexible space and amenities.
• Economic recovery – this has been one of the three largest recoveries in our history. Expects 2017, 2018 and 2019 to flatten out.
• Amazon is hiring someone every 2.4 seconds or approx. 7500 people a day worldwide.

John Burns recession forecast – 51% chance in 2 years and 72% chance in 4 years.

• Single family – bullish for single family housing, however, building costs rising faster than home prices, causing a compression in builders’ margins. Nationally, year over year ending 1^st quarter, costs are rising faster on average 6.2% versus new home price increases of 5.3%.
• Labor – how do we get students to consider professions in trades, that are key to supporting the growth of our industry.

A special thanks to Bird Anderson, of Wells Fargo who emceed and facilitated the sharing from our round tables and Lat H. Purser, Lat Purser & Associates, who provided an overview from his time at the Spring Meeting.  The table leaders included:  Rachel Russell, Milhaus | John Amols, Magnolia Development Company | Y.E. Smith, Little | Jeff Cernuto, Princeton Communities LLC | Amanda Gardner, New Forum.