CREW February 2016 Luncheon – Eye on the Economy: An Economic Update with Spencer Levy of CBRE

Who You Missed: Spencer Levy is Americas Head of Research for CBRE and serves as principal external spokesperson on real estate issues in the Americas region. He oversees the analytical activities of the CBRE research community within the Americas region and is responsible for the management of hundreds of professionals who are focused on producing market-leading insight and interpretative analysis on the latest real estate trends. As a senior member of the company’s global research team, he plays an integral role in the development and implementation of the global research strategy and business plan and is a frequent speaker before industry groups, including NAIOP, ICSC and CREW.

He is a graduate of Cornell University and Harvard Law School, and currently serves on the Board of Directors of the Baltimore Leadership School for Young Women.

What You Missed: Come on down……..Spencer Levy discussed the global economy and its impact on commercial real estate in the United States with a focus on the “Unusual Suspects,” those factors that move beyond the standard analysis that can help you and your clients better understand (and be successful) in today’s volatile markets, including China’s impact on the world economy.

Mr. Levy accentuated a top concern across industries relates to talent – finding talent, keeping talent and developing talent….so much so that in a recent survey, six of the top eight issues listed related to talent.

CREW January Luncheon – Overcoming Transportation Infrastructure Challenges in NC

Overcoming Transportation Infrastructure Challenges in NC submitted by Sarah Hopfer

Who You Missed:

• Warren Cooksey – NCDOT Director of Outreach and Community Affairs/Division 10
• Ned Curran – Board of Transportation – Chairman
• Tracy Dodson – Board of Transportation – Member/Division 10

What You Missed:

Charlotte is expected to grow by 400,000 people by 2040 and keeping up with the city’s infrastructure needs is critical.  Maintaining and improving our level of mobility is key for continued economic and land development success and competitiveness. “Optional toll lanes work by changing price per mile every five minutes,” said Ned Curran, Board of Transportation Chairman.  “The toll rate is going to be what people are willing to pay – it’s that simple,” he stated. 

Curran also discussed the legislation that was passed modernizing the way NC’s transportation network is built, maintained and funded and how this will impact commercial real estate and the future of our city.

To see the full presentation, please click here.
 

CREW Charlotte December Luncheon – CREW Excellence Awards

CREW Charlotte Excellence Awards submitted by Emily Buehrer

CREW Charlotte celebrated an exciting and accomplished 25^th Anniversary year at the final luncheon of 2015. We spent the afternoon recapping the successes and honoring our members and sponsors. Six members were presented awards for their outstanding contributions. The awards spanned from “Member of the Year” to “Networker of the Year” to highlighting two new CREW Charlotte members being inducted in the CREW Network Foundation’s Women of Vision program. The afternoon’s highlights are as follows:

• Rising Star Award : Jenn Stuart with Holder Construction received the Rising Star award for her extraordinary contributions through her involvement in the Programs Committee and taking on the challenge of planning the 25^th Anniversary Event, as well as attending the annual CREW Convention in Seattle this year.

• Member of the Year : Nichole Kelley with Wells Fargo was awarded the Member of the Year Award. Nichole embodies the underlying spirit of our Chapter and made multiple significant contributions this year. She led the efforts to bring in the first ever Diamond Sponsor, as well as multiple new sponsors, while also recruiting several new members. She was also instrumental in furthering our Queen City in Pink event and leading the efforts of teaming up with Wells Fargo for the Women’s Habitat Build in the spring and fall this year.

• Networker of the Year Award : This award was presented to Jean Russell with Interface, for her demonstrated efforts as a master networker actively sending referrals and business to other CREW members on top of offering her own networking class she offers to clients and connections.

• Outreach Award: Sallie Jarosz with Home Trust Banking received the Outreach award due to her dedication of taking on co-chairing the Leadership Development committee and restructuring it to be much more successful in 2015. She has also taken time to serve as an informal mentor to two different CREW members and has agreed to become a formal mentor in 2016.

• President’s Choice Award : This CREW member or company made contributions throughout the year that were vital to the ongoing success of the chapter. It was presented to Past President Holly Alexander with New South Properties for her work spearheading the new Mentor Program, along with her continued dedication to serving on the board and multiple committees throughout her membership over the last ten years.

• Women of Vision : The CREW Network Foundation Women of Vision program was established in 2007 to recognize donors for their cumulative giving to CREW Network Foundation. Participation in the program acknowledges an individual’s commitment to support CREW Network Foundation’s mission – to advance women in the commercial real estate industry through scholarships, industry research, and career outreach. Our chapter is very proud to say we have two members who have been inducted into the Women of Vision program – Nancy Olah with Nancy Olah Law and Angie Dugick, with Dugick Consulting.

November Luncheon Summary: The Evolving Story of Center City Retail with Chris Hemans of Charlotte Center City Partners

Center City Charlotte has experienced significant growth over the past five years. Yet, retail has continued to lag behind the office and residential development. Chris Hemans, Director of Retail of Charlotte Center City Partners, discussed the past, present and future of retail in Charlotte Center City.

Chris Hemans, Director of Retail

As Director of Retail, Christopher Hemans is responsible for collaborating with local and state partners to attract new retail to Uptown and South End. He brings over a decade of experience working in economic development, public policy, and community development. Hemans has extensive experience in working closely with public officials, private sector leaders, commercial real estate brokers and community stakeholders.

Most recently, Hemans led business recruitment efforts within the City of Charlotte’s business corridor geography. Before moving to Charlotte, Hemans was an Assistant Commissioner with the City of Chicago where he managed the Retail Chicago program.

A native of Evanston, Illinois, Chris holds an M.S. degree from the Newhouse School of Broadcast Journalism at Syracuse University and an undergraduate degree from the University of Illinois Urbana-Champaign.

Chris is a member of ULI, ICSC, IEDC and 100 Black Men of Charlotte and recently served on the board of the Stratford Richardson YMCA. Chris also is the newest member of CREW!

Charlotte Center City Partners

Our vision is for Charlotte’s Center City to be viable, livable, memorable, and sustainable, with modern infrastructure, a tapestry of unique neighborhoods, and a diversity of thriving businesses. We envision and implement strategies and actions to drive the economic, social and cultural development of Charlotte’s Center City.

The vision is the continuation of the growth of our city as pedestrian-friendly and walkable, with comfortable and interesting neighborhoods. It must have mixed growth, with balanced initiatives that are leveraged by public and private investment.

Retail: The Past

The corner of Trade and Tryon was a busy marketplace in the early part of the 20^th Century with Belk opening in 1910 and Ivey’s following in 1924, growing to a total of five department stores by the 1950s.

With Independence Boulevard’s opening in 1947 Charlotte became a vehicle dominant city with housing moving out into the suburbs and shopping soon followed. Park Road Shopping Center opened in 1955, followed by South Park and Eastland in the early 1970s. Downtown lost retail during this period and street parking in the downtown area became a thing of the past.

Retail: The Present

Retail is thriving in Charlotte with strong expansion in SouthEnd, but remains limited uptown. While there is just over two million square feet of retail space, half of that is made up of bars and restaurants.

Drivers of retail are:

• Location (with ground floor space being the predominant requirement)

  • Which is lacking in the uptown market

• Income

  • $75,000 is the average household income in the uptown market

• Density

  • 13,500 residents in the uptown market

  • 100,000 employees within the I-277 loop

  • 12 million visitors annual

• Co-Tenancy

  • There is a need for pioneers in the market

• Retail-Oriented Parking

  • Seen or perceived as lacking in the uptown market
  • Adding SouthEnd into the numbers brings another 1.4 million square feet, an additional 12,800 employees, and an additional 6,300 residents with a slightly higher average income of $78,000.

Retail: The Future

There is a push to celebrate our existing retailers – those in Overstreet Mall, Latta Arcade and sprinkled throughout uptown http://files.charlottecentercity.org/ShopUptown-Q315.pdf

Additional pop up shopping programs are underway including “werkinprogress” November 30^th through December 6^th at Epicenter and “Tinsel Box” December 2^nd through the 4^th. A third event is in the planning stages for Latta Arcade (CREW Member Jackie Sherard mentioned her retail store, Canvas, located in Latta Arcade.)

Vintage Charlotte, a marketplace for retailers operates twice per year in uptown as well.

Atherton Mills has announced a $100 million project and Whole Foods on Stonewall will be a reality in coming months. Independence Center is in talks regarding expanded retail area and the Levine project in First Ward is expected to drive more development in the area.

Chris closed letting everyone know that Charlotte Center City Partners will continue its efforts to provide proof of concepts for retail, assist in creating space, identify and recruit retailers to uptown and undertake the research necessary to grow the retail presence.

CREW Charlotte October Luncheon: A Detailed Look at the New 615 South College Street Project

Who you missed:  The panel was moderated by Chad Martin Vice President of Holder Construction Company.  The Panel members were:

Norris Hunt – Vice President, Senior Project Manager, John Portman & Associates
Eric Hampton – Engineer, Kimley Horn
John Ball – Senior Leasing Agent, Trinity Partners
Travis Garland – Director of Leasing, John Portman & Associates  

What you missed:  This speculative office tower has broken ground and will encompass 375,000 square feet with a 1600 space parking garage.  The completion date is slated for the first quarter of 2017.  The conversation began with a video overview that you can watch here:  https://www.youtube.com/watch?v=4tBwuzpV7YY

The vision for this project began differently than the final plan for office space adjacent to the Westin Hotel.  When John Portman & Associates developed the Westin they had always planned a mixed use project next to Westin.  As the market turned south the plans were put on the back burner.  In 2012 (vacancy at 12%) they began dusting off the plans, switching gears towards office space only and a 1600 car garage (3/1000).

This project, and surrounding construction projects, can help shape the future of  Charlotte by creating an entry area into Uptown from Southend where people can get to work easily by rail or drive and park with the plentiful parking.  There is a purposeful strategy in staying away from retail as Stonewall Street will become a shopping hub over the next few years.

The growth in this Southern sector means that small, medium and large companies can have Class A office space with a fresh, yet consistent look and feel, open or “collision zones” for staff interaction, balcony space (if desired), convenience of light rail or traditional commuting all at the Southern Gateway of Uptown.

There were many challenges from start to present in bringing this project to the table.  The market justified the project in 2012.  The equity was there, but the debt to take on a speculative project was a big risk.  The use of non-traditional lenders enabled the project to move forward in that climate without having to prelease a large amount of space. 

The physical project is hemmed in by the light rail and a parking deck.  Looking at these two encumbrances as an asset has allowed for creativity in making the destination desirable for commuting by car or public transport.   

The suburban South Charlotte Market has been a challenging competitor for the Uptown market over the last few years.  This location will attract those that normally would have not considered the Uptown market.  Additionally, the cost per foot will compare favorably and will continue to highlight Charlotte as a less expensive urban office destination for relocating companies than other markets like Atlanta and Denver.

The Charlotte market is healthy, with a more diverse ownership of portfolios created by recent movement of properties.  This project can help set the stage to draw a fresh clientele to the Uptown while helping spur growth in the Southern sector for office, retail and help continue to draw South End towards Uptown.