and wanted to reach out to give you an update on current events, market conditions affecting real estate in the Charlotte area, and COVID fashion advice (for anyone interested).
Charlotte’s Apartment Scene – Covid 19 Style
Despite slowing sales volume and investor concerns, the Charlotte market is showing positive signs in sales activity. Recent apartment sales in Monroe and southwest Charlotte are proof that deals can still be done. While rental rates continue to weaken, Charlotte remains a strong location for national investment in the multi-family realm. For details on these and other Charlotte area apartment sales, please feel free to reach out to us for additional details.
Industrial Remains Strong
Charlotte’s industrial market remains strong with anticipation of continued success over the foreseeable future. Continued demand in the airport submarket fueled by Amazon, a speculative, new, large user, tagged by the City as Project Nighthawk, as well as improving infrastructure at Charlotte’s Airport are helping this property type’s continued demand. Several deals in the Airport, Southwest and East submarkets are noted from March through May 2020 with capitalization rates in the 7.00 to 7.25% range. We expect this sector to outperform others over the mid and long term given the transformed landscape.
Where is the market heading?
Investors throughout the country are shifting focus to new property types. Generally, these real estate platforms have included “Essential” Real Estate. Though large parts of the country have closed, grocery stores, convenience stores, auto parts stores, collision centers, drug stores, discount retailers and fast food have been attracting new investors. We expect there to be opportunities in certain sectors for clients and investors who are prepared to take action, which may possibly translate into making a shift in your strategy or tactic. Many of these investors are attracted to net lease investments which remained fueled by 1031-exchange money along with mounds of available cash.
Are you, your company and/or your real estate holdings affected by COVID?
Many property owners, businesses and others with ties to the real estate market have concerns about changing market conditions. Many of these fears or concerns are reasonable and warranted although many can also be mitigated with proper knowledge and an understanding of their available options. T.B. Harris Jr. & Associates can help you craft an actionable solution and path forward. Our firm specializes in all commercial property types and with over 40+ years of experience, has a vast array of knowledge we can apply in helping to understand the current market and effects on various real estate property types. If you or your company would like to further discuss COVID and its impact on real estate or other related real estate issues, and come up with a solution for your specific scenario, please do not hesitate to contact our office via phone or email. We continue to work as an essential service provider during this time.
Areas of expertise include but are not limited to:
- Real Estate Valuation
- Real Property Evaluation of specific issues
- Market Studies
- Impact Studies
- Lease Negotiations
- Value Disputes & Resolutions
- Bankruptcy and Special Asset Workout Solutions
- Condemnation/Eminent Domain
- Tax Appeal
- Expert Witness Testimony