Research Triangle, NC | 2015 Top #CRE Markets to Watch: Office

Posted on August 6, 2015 by SVN

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 Office Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Office Market to Watch: Research Triangle, NC

The Raleigh-Durham region is already home to the sprawling, 22.5 million square foot Research Triangle Park (RTP), the largest science campus of its kind in the United States. In spite of their established position, Raleigh and Durham are not resting on their laurels. Instead, they are embracing the “innovation district” concept with open arms and a renewed vigor is now permeating the Research Triangle’s office markets. RTP is vying to make itself more appealing as well, building residential and retail amenities on a 100-acre site within the science park. Longfellow Real Estate Partners, an innovation district veteran of Cambridge, Massachusetts’s Kendall Square, is trying to spearhead an ambitious 1.3 million square foot mixed-use innovation district in downtown Durham. The development of Raleigh’s Union Station, the new passenger train station to replace the currently overcrowded Amtrak hub, represents a commitment by the city to improve its urban core through heavily investing in its currently inadequate mass transit options and long-stalled commuter rail system for the Research Triangle area.

Office fundamentals strengthened in 2014, with vacancy falling by 200 basis points over the year. There is a flurry of new development throughout the region, with roughly 1.4 million square feet of urban core space under construction that should be reasonably well absorbed given the prevailing outlook for space demand.

To read more on the Research Triangle and other top office markets, download the full version of the 2015 Office Market Update report here.

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Charlotte, NC | 2015 Top #CRE Markets to Watch: Retail

Posted on June 1, 2015 by SVN

Sperry Van Ness International Corporation’s (SVNIC) 2015 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2015 Retail Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Retail Market to Watch: Charlotte, NC

Charlotte is generally well-regarded for its healthy office market and, having recovered substantially from the financial crisis, is drawing retailers with an eye for its improving employment and consumer outlook. With falling retail vacancy rates and only modest levels of construction, market fundamentals are poised to strengthen through 2015 and 2016. Across all retail subtypes, Chandan Economics reports the market vacancy rate for mortgage-financed properties fell below 7% in the fourth quarter of 2014. As compared to a year earlier, the pace of rent growth nearly doubled during 2014.

A burgeoning supermarket war is being waged in the Charlotte region, as Florida-based Publix is rapidly snapping up market share in Harris Teeter’s backyard. Walmart locations are proliferating throughout the region, and Whole Foods announced in early 2015 that it will open its second Charlotte location in the First Ward. Restaurants are also looking toward Charlotte and its hungry workers for expansion. New York–based salad purveyor Chop’t chose the Charlotte neighborhood of Myers Park for its first location outside of New York or DC. Another newcomer to the region is personal shoppers at malls, which are now available at Simon’s SouthPark Mall for a sizeable fee. Investor appetite for the region’s retail is very strong, as most institutional investors have already become comfortable with Charlotte’s fundamentals through office assets. The largest retail transactions of 2014 were closed by Connecticut-based Starwood Capital and Los Angeles–based CIM Group, both of which also own substantial office towers in the CBD.

To read more on Charlotte and other top retail markets, download the full version of the 2015 Top Retail Markets to Watch report here.

It’s a different world out there.

Office Spotlight: Sperry Van Ness/Percival Partners in Charlotte, NC

Posted on November 6, 2014 by SVN

This week, we turn the spotlight on Sperry Van Ness/Percival Partners with offices in Charlotte, North Carolina.

N.J. (Joey) Godbold | Managing Director and CEO | SVN/Percival Partners

What has been your strategy for growing your firm and also your market area?

Like many firms across the country, we contracted during that little downward cycle we experienced a few years ago. As activity has become much more robust, we have a goal to increase our staff by five Advisors by the end of 2015. We have found that the demand for sales people has increased significantly lately and we are competing with other industries for good folks. We have enrolled in SVN’s RPO Program which has been very helpful in identifying mid-career candidates. A significant portion of my time and energy is spent in recruiting, which will pay off in market share over the coming three years.

What are some of the unique activities you do to motivate your team?

We have always enjoyed a family atmosphere and that in itself goes a long way toward a positive, motivational office. As Advisors take advantage of technology to work more outside the office now, it has become more important to create opportunities for team-building and motivational activities. Annually, we participate in a large charity volleyball tournament. Monthly, our sales meetings are lunch affairs. We are now in the midst of a listing contest with the grand prize being a weekend at a posh hotel in Charleston, SC.

What’s been the biggest challenge in running your business in the last few years?

Our firm has been in the Charlotte, NC market for over 50 years. We have been blessed with long-serving, top-notch Advisors who have been with our firm for many years. The other side of that blessing is that we need to be attentive to bringing in younger Advisors – those who will become the next generation of performance and leadership. That was not our focus over the past few years because of the state of the economy. Thus, the need to re-focus on recruitment.

How many Advisors/Staff did you have when you joined SVN? How many (in total) do you have now?

For the past few years, we have refrained from growing our firm size. Upon joining SVN in June of this year, we have gone back on the recruiting path to increase from the current level of 7 Advisors. The SVN move has certainly created some interest in the market and I regularly interview 5 – 8 prospects per month. Some of the interviewing activity comes through the RPO program. To date, I have not found the right mix but with the current activity, expect to bring 2 to 3 new Advisors on board in the next few months.

Contact:
N.J. (Joey) Godbold
Managing Director and CEO
Sperry Van Ness/Percival Partners, LLC
Charlotte, NC

*All Sperry Van Ness® offices are independently owned and operated.

Charlotte, NC | 2014 Top CRE Markets to Watch : Office

Posted on October 27, 2014 by SVN

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Office Markets to Watch. Not the largest, or the most actively contested markets, the 2014 Office Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

TOP OFFICE MARKET TO WATCH : Charlotte, North Carolina

As the second-largest U.S. banking center after New York, Charlotte suffered a severe contraction in office demand following the onset of the financial crisis and is still in the early stages of recovery. Financial services is again a dominant sector, and rapid hiring has driven total employment beyond its pre-recession peak, while the 6.6 percent jobless rate reflects a steady arrival of new workers. The metro’s population of Millennials, ages 20 to 34, will increase by nearly 15 percent over the next five years, or four times the national average. Office vacancy is declining but was still more than 13 percent at the end of 2013. A below-average cost of doing business, coupled with a large and growing pool of educated workers, promises to attract new employers and fuel hiring and office absorption as the national economy accelerates. Downside risks include potential impacts from consolidation in financial services. Properties able to provide flexible, high-density space with rich amenities—favored by Millennials—will be better positioned to attract tenants and grow net operating income.

To read more on Charlotte, and other top office markets, download the full version of the Top Office Markets to Watch report below.

It’s a different world out there.

Download the Top Trends and Markets to Watch Reports

Office Trends and Markets to Watch
Industrial Trends and Markets to Watch
Retail Trends and Markets to Watch
Apartment Trends and Markets to Watch
Commercial Real Estate Trends to Watch

5 for Friday with Joey Godbold of Sperry Van Ness/Percival Partners, LLC

Posted on July 25, 2014 by SVN

This week, our 5 for Friday features Joey Godbold, Managing Director of Sperry Van Ness/Percival Partners, LLC out of Charlotte, North Carolina.

1. What is your geographic market and product specialty?

Joey Godbold | Managing Director | SVN/Percival Partners, LLC

The Charlotte MSA, encompassing ten counties in North Carolina and South Carolina and a population base of 2.3 million, is my primary market area. For investment properties in excess of $1MM, I consider “the Carolinas” to be my extended area. Managing an office with multiple specialties, I try to stay connected with the five major sectors – office; industrial; retail; land; and investment properties. As to my personal practice, I tend to deal in multi-tenant investment properties.

2. What’s your latest best practice tip that you can share?

After you have decided on a specialty, do what it takes to know the players in that field. That may include joining – and being active in – trade associations; LinkedIn groups; SVN Product Councils, etc. Take the time and put forth the effort required to become an expert.

3. What’s been the biggest change over on how you run your business in the past decade?

It used to be that a real estate broker earned a commission, primarily, by introducing a qualified buyer to a reasonably-priced asset. Today, through the Internet, buyer and seller can find each other without our assistance. Therefore, more focus is placed on adding value to the transaction by advising clients and creating a competitive market in order to achieve the desired price level.

4. What business book do you like to recommend to your colleagues?

I just completed re-reading “Goals!” by Brian Tracy and am currently reading “Coaching Salespeople Into Sales Champions” by Keith Rosen. Both are commendable but the point is that we should always be reading something. Reading a so-so book is much better than reading nothing.

5. What’s a fun fact that not everyone knows about you?

I am often accused of having a boating “compulsion.” I do own too many floating vessels.

*All Sperry Van Ness offices are independently owned and operated.