SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 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 has expanded its employment base steadily since the recession bottomed in 2010 and currently has a relatively low 5.3% unemployment rate, as of January ‘16, and 2.8% annualized growth of new jobs, according to the Bureau of Labor Statistics. The region has also grown population by 10.1% from 2010 to 2014 according to the Census Bureau, making it prime for expansion and development of retail real estate. Major growing employment segments include Mining, Logging, and Construction, Financial Activities, and Leisure and Hospitality with 6.4%, 4.8%, and 4.6% annualized growth, respectively. As Charlotte continues to be a popular place to work and live, more firms are likely to enter the market, including those seeking to establish corporate headquarters. Despite these positive forces, North Carolina’s recently enacted “bathroom law” threatens to reverse economic growth as businesses and consumers look elsewhere to avoid the perceived discriminatory law; this could cause pain to the retail sector for the rest of 2016 and beyond if not fixed.
Advisor Insights: SVN | Percival Partners in Charlotte, NC
SVN’s Charlotte-based Advisors at SVN | Percival Partners have some retail market highlights to share. Here’s what to look out for in Charlotte’s retail market in 2016:
Increasing property values
Ongoing new development of grocery anchored centers
New grocery stores entering the market
Target will start expanding again
Continue to see high demand for investment properties
Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.
To read more on other top retail markets, download the full version of the 2016 Retail Market Outlook report here.
[bctt tweet=”Charlotte, NC is one of 2016’s top retail #CRE markets to watch.” username=”svnic”]
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
*All Sperry Van Ness® offices are independently owned and operated.
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