Triangle Commercial Real Estate Market Forecast
At NAI Carolantic, we pride ourselves in making accurate real estate forecasts. Last year, we predicted the year would end with positive absorption and rental rates would hit bottom. We were correct in our prediction and reported declining vacancy in all product types with the exception of two geographic submarkets. More than 1,700 business and community leaders attended NAI Carolantic’s 28th Annual Triangle Commercial Real Estate Conference a few weeks ago, and heard us hold ourselves accountable.
For 2013, we said national investors are still interested in the Triangle Region for holdings as global metropolitan cities are still hard to penetrate. We expect a continued increase in investments in second tier cities led by apartment buyers, although the retail market has seen a year-end flurry. Well located residential land prices will move upward and existing lot prices level off as national builders get better returns from raw land. Overall, the commercial real estate market is performing well with continued room for upward growth.
During this year’s Conference, themed “Transformed by Technology”, we wanted to engage our guests and get their perspective on the Triangle. We asked them to scan a QR code on their program to answer five, business-related questions. The results were shown 30 minutes later during our presentation. Here were the results:
- Are you optimistic about the future growth of the Research Triangle Region? 97% said yes.
- Do you plan to hire more employees in 2013? 59.26% said yes.
- Are you considering expanding or relocating your business in 2013? 43.12% said yes
- What keeps you up at night? The greatest concern was finding skilled workers, followed by increased taxes and health care expenses. The national deficit and ensuring profitability were last.
- What issue should be addressed first by Governor McCrory? 75.23% said Economic Development, followed by Education at 19.27%, and Corporate Taxes at 5.5%
Despite living in a technology-driven era, we at NAI Carolantic stay focused on the fact that real estate is still a local, relationship business and we hold ourselves accountable to our clients. If we can be of help to you as you evaluate your real estate position, please give us a call, 919-832-0594. If you would like a free DVD of our Conference, please send us a request at firstname.lastname@example.org . We look forward to being of service.