Triangle Economic News

[rancenc]

Expansion and job additions for British pharma company.

https://www.wraltechwire.com/2021/06/30/british-pharma-expanding-footprint-in-triangle-is-looking-for-talent/

[KJHburg]

This has to be a few jobs and that is a LOT of trading cards and sports memorabilia.  California based Upper Deck company leases 126,000 sq ft of warehouse space in Durham.

""The Upper Deck Company of Carlsbad, California, signed on to take up an entire 126,000-square-foot building at Trinity Capital’s Alexander Commerce Park. Upper Deck, founded in 1988, is best-known for producing trading cards and other sports memorabilia.  “We’re excited to have Upper Deck at Alexander Commerce Park. The company’s outstanding reputation and international footprint will be an excellent complement to the park,” said Massie Flippin, partner at Charlotte-based Trinity Capital.""

Trading card company Upper Deck will fill new industrial building in Durham - Triangle Business Journal (bizjournals.com)

[KJHburg]

Since job creation is talked about here I will put this here.  the Jobs to Housing permits ratio which on the surface look fairly good for Raleigh and Durham metros.  I think job creation has accelerated in the last few years and even more housing is needed in the entire Triangle area. 

Notice the markets with high job creation but much less housing are some of the highest priced housing markets in the country. 

 

[RALNATIVE]

20 minutes ago, KJHburg said:

Since job creation is talked about here I will put this here.  the Jobs to Housing permits ratio which on the surface look fairly good for Raleigh and Durham metros.  I think job creation has accelerated in the last few years and even more housing is needed in the entire Triangle area. 

Notice the markets with high job creation but much less housing are some of the highest priced housing markets in the country. 

 

Very interesting how they Broke out Raleigh from Durham and Chapel Hill, but most of the other metrics focus on the larger metro area.

[KJHburg]

Good news is that the office market is stabilizing in  Raleigh Durham area and many other places.  How we stacked up with 3 of our competitors:  Charlotte, Atlanta, Nashville, Raleigh Durham.  Hint Atlanta is by far the worst market right now and Raleigh Durham is the best market in this group.  All stats from JLL

Net Absorption in total Numbers (negative means office market shrunk) year to date to July 1 2021   Bold means best in Class. 

CLT   +78,xxx sq ft    ATL -3.138M sq ft   Nash  +15,xxx sq ft   RDU +151,xxx sq ft

Overall vacancy rate

CLT 16.1%   ATL 22.6%  Nash 17.99% RDU 14.7%

Average sq ft rate 

CLT $32,58  ATL $30,78 Nash $33,01 RDU $29.25 

Total Market Size in Millions of Square Feet

CLT 57 M  ATL 153.4 M  Nash 43.7 M RDU 48.8 M    (I will call ATL the winner since it is the biggest office market) 

Percentage of office space given size the market absorbed (negative means office market shrunk)

CLT  +.1%  ATL  -2.0%  Nash +.1 %  RDU +.3%   

so Raleigh Durham is the best performing market this year so far of our competitors.    Charlotte and Nashville doing about the same.  Atlanta well still has big problems. 

[RALNATIVE]

1 hour ago, KJHburg said:

Good news is that the office market is stabilizing in  Raleigh Durham area and many other places.  How we stacked up with 3 of our competitors:  Charlotte, Atlanta, Nashville, Raleigh Durham.  Hint Atlanta is by far the worst market right now and Raleigh Durham is the best market in this group.  All stats from JLL

Net Absorption in total Numbers (negative means office market shrunk) year to date to July 1 2021   Bold means best in Class. 

CLT   +78,xxx sq ft    ATL -3.138M sq ft   Nash  +15,xxx sq ft   RDU +151,xxx sq ft

Overall vacancy rate

CLT 16.1%   ATL 22.6%  Nash 17.99% RDU 14.7%

Average sq ft rate 

CLT $32,58  ATL $30,78 Nash $33,01 RDU $29.25 

Total Market Size in Millions of Square Feet

CLT 57 M  ATL 153.4 M  Nash 43.7 M RDU 48.8 M    (I will call ATL the winner since it is the biggest office market) 

Percentage of office space given size the market absorbed (negative means office market shrunk)

CLT  +.1%  ATL  -2.0%  Nash +.1 %  RDU +.3%   

so Raleigh Durham is the best performing market this year so far of our competitors.    Charlotte and Nashville doing about the same.  Atlanta well still has big problems. 

The numbers indicate that Atlanta is overbuilt. In boom times things are great, in downturns not so much.

[KJHburg]

This is interestsing from Richmond right up the road.  Their economic development organization did some market research and surveys and found CEOs and other decision makers prefer Raleigh way over Richmond.  

Jennifer Wakefield column: Economic momentum is strong, but lack of external perception could hurt us | Columnists | richmond.com

""On a scale of 1 to 10 on how likely they were to consider the Richmond region, executives rank our area at a 4.5. Corporate executives are 33% more likely to consider Raleigh, N.C., than Richmond and site consultants are nearly 20% more likely to consider Charlotte, N.C., than Richmond.""

Big wins like Apple and Google only give the Raleigh Durham area more notice. 

Funny thing is Richmond metro was way bigger than Raleigh for years until Raleigh really started growing a few decades ago.  In fact metro Raleigh (not including Durham) is larger than metro Richmond and of course together Raleigh Durham is bigger than Nashville metro. 

Edited July 12, 2021 by KJHburg

[DanRNC]

11 hours ago, KJHburg said:

This is interestsing from Richmond right up the road.  Their economic development organization did some market research and surveys and found CEOs and other decision makers prefer Raleigh way over Richmond.  

Jennifer Wakefield column: Economic momentum is strong, but lack of external perception could hurt us | Columnists | richmond.com

""On a scale of 1 to 10 on how likely they were to consider the Richmond region, executives rank our area at a 4.5. Corporate executives are 33% more likely to consider Raleigh, N.C., than Richmond and site consultants are nearly 20% more likely to consider Charlotte, N.C., than Richmond.""

Big wins like Apple and Google only give the Raleigh Durham area more notice. 

Funny thing is Richmond metro was way bigger than Raleigh for years until Raleigh really started growing a few decades ago.  In fact metro Raleigh (not including Durham) is larger than metro Richmond and of course together Raleigh Durham is bigger than Nashville metro. 

The Triangle will always be pretty resilient due to its strong foundations in core economic areas (innovative science and technology, biomanufacturing, etc.).  While the area could do a better job at growing its economy and improving the quality of life, it weathers the economic ebbs and flows better than most areas of the country.  

[rolly]

Cary's SAS Institute may be purchased for up to $20 Billion 

https://www.wraltechwire.com/2021/07/12/report-broadcom-in-talks-to-acquire-sas-for-as-much-as-20b/

[rolly]

Yep, not great news, but not unexpected. 

Local ownership of a local company. Worked out great since 1976. But... who can pass up $20,000,000,000.

[RALNATIVE]

2 hours ago, rolly said:

Yep, not great news, but not unexpected. 

Local ownership of a local company. Worked out great since 1976. But... who can pass up $20,000,000,000.

I honestly feel like the Goodnights are simply ready to retire, or at least slow down. They've made their billions.

I don't believe they have any heirs who are likely successors, so why not hand the family business off to capable hands? They still will earn more money than imagineable because i'm sure they will reap a hefty payment plus retain a boatload of preferred stock, and probably other equity incentives. For the Goodnights, this is a no brainer. For their employees, that's another story.

[KJHburg]

Breaking late today SAS will not be sold to Broadcom.

from the Triangle Biz Journal

""A day after reports that Cary-based analytics giant SAS Institute was in “talks” to be bought out by semiconductor giant Broadcom, SAS CEO Jim Goodnight told his employees a deal isn’t happening. The company confirmed that Goodnight “sent a message to all employees in which he said "We are not up for sale.” “SAS remains focused on furthering innovation to serve our customers,” said spokeswoman Shannon Heath.  Goodnight’s memo comes a day after The Wall Street Journal sourced people “familiar with the matter” as saying SAS could be valued at between $15 billion and $20 billion in the deal.  On Tuesday, however, WSJ reported sources as saying that talks had fallen through.""

SAS CEO Jim Goodnight tells employees Broadcom deal isn't happening - Triangle Business Journal (bizjournals.com)

[KJHburg]

From the City of Durham twitter to the city of Raleigh  (and believe me this is one metro area and I hope the US Census bureau brings it back as one metro over 2 Million)

CityofDurhamNC

 

@CityofDurhamNC

 

Good morning,

@RaleighGov! Looks like we’re in this together again! Raleigh & Durham have been ranked #2 by @USNews

as a 2021-2022 top place to live in the U.S. #BestPlaces #Neighbors

Best Places to Live in the U.S. in 2021-2022 | Places Rankings | U.S. News Best Places (usnews.com)

[KJHburg]

N-Able tech firm newly spun off and independent is adding 200 jobs in Morrisville.

Tech firm N-able, a spinoff of SolarWinds, to expand in RTP with up to 400 jobs | WRAL TechWire

Why new public company N-able is 'hiring like crazy' in Triangle - Triangle Business Journal (bizjournals.com)

Edited July 20, 2021 by KJHburg

[KJHburg]

another Durham win from Twitter and Biz Journal  High paying jobs too! 

Global power electronic company Smart Wires, which partners with electric utilities across the globe, just picked Durham County for its research and development operation’s headquarters. 250 new jobs over 5 years. $118k wages. Would invest $21.5 million.

[rancenc]

Follow up article on @KJHburg's posting from above.  Great news for Durham County.

https://www.nccommerce.com/news/press-releases/power-technology-company-selects-durham-global-hq-and-research-facility

 

[KJHburg]

and this is a corporate HQ relocation from California to Durham 

San Franciso power grid firm to move jobs, HQ to Durham, to hire hundreds more | WRAL TechWire

[rancenc]

Follow up article to @KJHburg's above posting of the economic news for Durham County.

https://www.nccommerce.com/news/press-releases/power-technology-company-selects-durham-global-hq-and-research-facility

[rancenc]

5 minutes ago, rancenc said:

Follow up article to @KJHburg's above posting of the economic news for Durham County.

https://www.nccommerce.com/news/press-releases/power-technology-company-selects-durham-global-hq-and-research-facility

SORRY ABOUT THE DOUBLE POSTING OF THIS ARTICLE...Got carried away with all of the recent job announcements today throughout the state.  Not only in Durham County but also Cabarrus and Person counties.  Let's see what the rest of the week holds!

[KJHburg]

few more details in the Biz Journal article about announcement today

""California-based Smart Wires, which supplies technology to the utility industry, has picked Durham County for its global headquarters and a research and development operation – a move that means 250 new jobs and $21.5 million in investment over five years.  The company is currently based in the Bay Area and has operations in Europe.  Smart Wires picked Durham over a competing site in Austin, Texas, and the 250 jobs bring with them high salaries – averaging $118,000, according to the North Carolina Department Commerce. Smart Wires partners with electric utilities across the globe. According to its website, utilities use its technology “to solve their challenges and evolve their grid.”""

Power grid firm Smart Wires to move HQ to Durham, create 250 jobs - Triangle Business Journal (bizjournals.com)

[RALNATIVE]

1 hour ago, KJHburg said:

few more details in the Biz Journal article about announcement today

""California-based Smart Wires, which supplies technology to the utility industry, has picked Durham County for its global headquarters and a research and development operation – a move that means 250 new jobs and $21.5 million in investment over five years.  The company is currently based in the Bay Area and has operations in Europe.  Smart Wires picked Durham over a competing site in Austin, Texas, and the 250 jobs bring with them high salaries – averaging $118,000, according to the North Carolina Department Commerce. Smart Wires partners with electric utilities across the globe. According to its website, utilities use its technology “to solve their challenges and evolve their grid.”""

Power grid firm Smart Wires to move HQ to Durham, create 250 jobs - Triangle Business Journal (bizjournals.com)

Probably the most interesting part of this announcement IMO is that they selected Durham over Austin. The more the Triangle is selected over peer cities, the more momentum this area will gain.

[KJHburg]

From Business Facilities magazine an economic development and corporate real estate magazine.  As I have said when you again and again come in top or near the top of the rankings it does mean something.  

Business Facilities' 17th Annual Rankings Report

NC overall #2 best business climate after VA
#8 best state for food processing
#7 in industrial output
#4 tech talent pipeline after VA CA NY
#6 customized training
#8 in semiconductors
#5 in biotechnology
#3 in installed solar capacity
#10 best business tax climate  only SE state is FL at #5
#10 fastest growing state 
#6 in foreign direct investment
Raleigh #2 millenial magnets
Charlotte # 6 corporate HQ location only much larger metro areas ahead of us NY Chicago Houston Atlanta Dallas
Charlotte #3 best business climate large metro after only Dallas and Phoenix
Charlotte #7 US city in Fintech 
Raleigh #4 tech hub growth potential

[KJHburg]

Here is one more article on Smart Wires moving their HQ and why it is important that the HQ is moving.  Avaya quietly did this when it moved its HQ from Silicon Valley to Durham. 

Why West Coast firm picking Durham over Austin for headquarters is big deal - Triangle Business Journal (bizjournals.com)

John Boyd, a Florida-based site selection consultant, said Tuesday’s announcement by Smart Wires, which provides technology to electric utilities across the globe, could mark a shift. The company said it is also planning a research and development hub in Durham and that the expansion will create 250 jobs.  “This really puts an exclamation point on Durham becoming a premiere tech market,” he said. “For years, Austin was able to leverage its skillset, its intellectual capital, its pro-business climate to site seeking California tech companies unwilling to go too far east and that’s really changing today.”  Boyd said he’s hearing from firms looking more seriously at the East Coast, from the Triangle to Tampa and Nashville.  The more big projects the region wins, the higher its profile gets on the radar of decision makers.   Joe Vranich, a consultant with Spectrum Location Solutions, suspects housing was another big factor.  “If Austin indeed lost out to Durham then the probability is high that Austin’s stratospheric housing costs played a role,” he said.

[SydneyCarton]

17 hours ago, KJHburg said:

Here is one more article on Smart Wires moving their HQ and why it is important that the HQ is moving.  Avaya quietly did this when it moved its HQ from Silicon Valley to Durham. 

Why West Coast firm picking Durham over Austin for headquarters is big deal - Triangle Business Journal (bizjournals.com)

John Boyd, a Florida-based site selection consultant, said Tuesday’s announcement by Smart Wires, which provides technology to electric utilities across the globe, could mark a shift. The company said it is also planning a research and development hub in Durham and that the expansion will create 250 jobs.  “This really puts an exclamation point on Durham becoming a premiere tech market,” he said. “For years, Austin was able to leverage its skillset, its intellectual capital, its pro-business climate to site seeking California tech companies unwilling to go too far east and that’s really changing today.”  Boyd said he’s hearing from firms looking more seriously at the East Coast, from the Triangle to Tampa and Nashville.  The more big projects the region wins, the higher its profile gets on the radar of decision makers.   Joe Vranich, a consultant with Spectrum Location Solutions, suspects housing was another big factor.  “If Austin indeed lost out to Durham then the probability is high that Austin’s stratospheric housing costs played a role,” he said.

In my opinion, Austin is a better metro than the Triangle or Charlotte.  However, the Triangle and Charlotte offer a much better QOL.  They're way cheaper, and there's a lot more greenery in NC than in Austin.  Also, traffic in Austin is out of control.  Moving a company to NC over Austin makes a lot of sense.

I'd rather visit Austin than NC cities, but I'd rather live in the Tar Heel State.

Edited July 29, 2021 by SydneyCarton

[KJHburg]

well in my book Quality of Life trumps everything else so I would rather be in Charlotte or Raleigh Durham over Austin.  Austin is nice  and a great place to visit as you said but the quality of life issues are the most important in my book.  But if you are moving from California which many are into Austin it is golden.   But they maybe because they have never come this far east.  As hot as it is right now in the Carolinas, this kind of heat and yes even humidity lingers in Austin a lot longer.  

Edited July 29, 2021 by KJHburg