On November 7, 2017, to another sell-out crowd, a presentation by Kathleen Carey, President & CEO, ULI Foundation, presented the national and regional perspective around the Emerging Trends Report. “There is a sense of calm and focus on finding opportunities.” Some of the high points includes:
- The market’s sentiment is to realize a profit in 2018, stating that 2018 may be a good year to sell.
- We are not the “gig” economy, but “freelancers” – and it is not just the millennials.
- 19% of our office stock was delivered since 2000, and we need to invest in these assets.
- GenXers haven’t recovered from the global financial crisis, and, yes, millennials are living in the suburbs.
- Best bet – senior housing.
- Generation Z is expected to work 17 jobs and live in 15 homes during their lives.
- Retail – ecommerce is now 9% of all retail sales; 90% in store. Best bet is experiential retail.
Following her presentation, a local panel of experts discussed the market in Charlotte and our region. The panel included moderator Kathleen Rose, Rose & Associates; and panelists Peter A. Pappas, Terwilliger Pappas, Jay Levell, White Point Partners, and Jon Morris, Beacon Partners. This dynamic panel shared their insights about Charlotte and North Carolina and stated that “we get in our own way,” “we need to think of future of our city,” and “jump over the roadblocks – retrench, do a better job at planning.” Below are some comments shared during discussion:
- Successful food halls have evolved in existing space (not new space) – many with a live, work play concept; retrofits with authenticity of the space are critical;
- Make industrial look different through signage and exterior design elements;
- Retail’s key is authenticity. It is now an amenity to residential development;
- Suburbs have higher barriers to entry;
- Capital markets are embracing suburban locations if the development is creating a sense of place.
- Density – cities are trying to keep up with the markets;
- The speed of planning, zoning, etc. holds back good development. Charlotte is undergoing a re-write of their zoning code – the real estate community needs to monitor and provide input as this is the future of Charlotte’s planning;
- Can a development be a driver of an area? P3 integration of open space and infrastructure are trending.
- Affordable housing – need to keep working on state and local financing off-set to make it market feasible.
To view the 2018 Emerging Trends in Real Estate® report, click here.
Click here for photos from the event.