Economic Development - Expansions and Relocations

[KJHburg]

Lowes if they come to Charlotte with their tech center is seeking 200,000 sq ft of office space which would probably be a new build.  The new Portman tower could be a site or the new Childress Klein tower proposed across from Superica or the Beacon's LoSo station at Scaleybark station.  Or even a new build uptown.  Anyway we need to win this tech center for Charlotte as I have stated Dallas is strong competition and of course it makes sense to have it here near the HQ in Mooresville. 

from a subscriber article today

https://www.bizjournals.com/charlotte/news/2019/05/24/lowes-space-search-for-new-tech-team-could-total.html

""Real estate sources peg the company's space needs for the tech operation at 200,000 square feet. The search has focused on the central business district and locations in the middle of South End, according to another source, likely meaning an area closer to uptown rather than neighborhoods around it or the up-and-coming lower South End area.  South End has suddenly become a corporate office hotspot, with a number of office developments on the verge of breaking ground and large companies taking down substantial blocks of space — Dimensional Fund Advisors, LendingTree, Allstate, EY, WeWork and Krispy Kreme among them.""

this is for 2000 jobs so Charlotte needs to be in it to win and don't discount Dallas. 

""Real estate sources reiterated Friday that Lowe's has not made a final decision on a location. Dallas appears to be a serious player for the operation.   "The Dallas Regional Chamber and candidate regional cities are engaged with the Lowe's project team to support and encourage selection of DFW as a corporate center," Mike Rosa, senior vice president of economic development at the Dallas Regional Chamber, said in a statement. "We hope Lowe's chooses to grow, prosper and partner with us in DFW."  In December, Lowe’s announced it would add the software engineers, data scientists and other positions in the digital areas of the company. The goal was to bring 80% of the software engineering inside the company, Godble says.  Frahm says Lowe’s plans to pick a location for the IT center by the end of the summer.""

[KJHburg]

Mainland and Hong King Chinese investors are looking to 2nd tier US cities for investments and this article in the South China Morning Post mentions Charlotte.   Remember the Chinese were the financial partners of the then total spec 615 South College Regions building that is now been sold to another investor. 

https://amp.scmp.com/property/article/3001588/yield-king-real-estate-investors-ditch-new-york-la-second-tier-us-cities

Heard on the beach from a guy I met who worked with Toyota North America from Kentucky.  He works with Toyota NA corporate and stayed behind to work in KY and did not move to Dallas.  He said all the northern Kentucky people were rooting for Charlotte to get the 4000 person office but he said corporate thought our residential real estate market could not absorb that many people at once.  They consolidating their SoCal offices in Torrance CA and their northern KY offices into a huge office campus in Plano.  I still think DFW's flight to Japan played apart too but it was interesting hearing he and many others in the KY office wanted to come to Charlotte.   He said some of his coworkers who did move found the prices much higher and of course the property taxes are out of sight in Texas (due to no income tax) 

 

[KJHburg]

400 new manufacturing jobs in nearby Shelby and as I say a strong Charlotte region helps the city as well.

https://www.bizjournals.com/charlotte/news/2019/05/30/manufacturers-expansion-to-add-400-jobs-in-rural.html?iana=hpmvp_clt_news_headline

[KJHburg]

This sounds like a major expansion in the works for an aerospace materials manufacturer in Monroe.  Union County has the largest aerospace cluster in the state and provides many parts for both Airbus and Boeing.  

https://www.bizjournals.com/charlotte/news/2019/07/03/metals-processor-planning-large-new-facility-in.html

[SydneyCarton]

On 7/3/2019 at 6:00 PM, KJHburg said:

This sounds like a major expansion in the works for an aerospace materials manufacturer in Monroe.  Union County has the largest aerospace cluster in the state and provides many parts for both Airbus and Boeing.  

https://www.bizjournals.com/charlotte/news/2019/07/03/metals-processor-planning-large-new-facility-in.html

 Honda Aircraft is based in Greensboro too, which adds to NC's allure as an aviation hub.   

[KJHburg]

5 hours ago, SydneyCarton said:

 Honda Aircraft is based in Greensboro too, which adds to NC's allure as an aviation hub.   

they have several large employers at PTI airport including Honda Aircraft and HAECO a Hong Kong based aviation maintenance company.  That is another aviation hub in the state for sure. 

[A2.]

Keep an eye on this one fellow UP peeps. Not to be a harbinger of bad things I pray. And, trust you me, I certainly don’t want to contribute negative vibes, but this is a very interesting article that could have a domino effect on the rest of the sector and the global economy.

While Deutsche Banks restructuring doesn’t necessarily mean bad things to come, the ONE KEY is their unbelievable amount of derivatives that they hold. Counter party risks are HIGH with this one.  

So bottom line:

Deutsche Banks success is in EVERYONES interest, as the Trillions of derivatives are truly weapons of mass financial destruction. My personal take is that this will be patched (if even from behind the scene, think IMF and Global Central Banks). However, with their prominent position in the Financial world, a misstep  could result in a bad domino effect, that has the potential to create a global tsunami of chaos. 

(Think Lehman....)

 

https://www.zerohedge.com/news/2019-07-07/deutsche-bank-you-know-it-no-more-db-exits-global-equities-84-billion-overhaul

 

A2.

Edited July 8, 2019 by A2.

[kermit]

^ I really missed this sort of big picture stuff at UP. Thanks for bringing it back A2!

 

 

Edited July 8, 2019 by kermit

[Matthew.Brendan]

That’s pretty much the dirty little secret post Great Recession. The derivatives markets barely changed in any meaningful way and after a slow start they’ve exploded right back in scale and scope to where we were sitting 2007-2008. 

[CarolinaDaydreamin]

10 hours ago, A2. said:

Keep an eye on this one fellow UP peeps. Not to be a harbinger of bad things I pray. And, trust you me, I certainly don’t want to contribute negative vibes, but this is a very interesting article that could have a domino effect on the rest of the sector and the global economy.

While Deutsche Banks restructuring doesn’t necessarily mean bad things to come, the ONE KEY is their unbelievable amount of derivatives that they hold. Counter party risks are HIGH with this one.  

So bottom line:

Deutsche Banks success is in EVERYONES interest, as the Trillions of derivatives are truly weapons of mass financial destruction. My personal take is that this will be patched (if even from behind the scene, think IMF and Global Central Banks). However, with their prominent position in the Financial world, a misstep  could result in a bad domino effect, that has the potential to create a global tsunami of chaos. 

(Think Lehman....)

 

https://www.zerohedge.com/news/2019-07-07/deutsche-bank-you-know-it-no-more-db-exits-global-equities-84-billion-overhaul

 

A2.

They have been hemorrhaging money over the last 10 years, after a merger fell through in May, this was imminent. All Euro banks have done this on a smaller scale because Wall street is much better in the global equities business. The clients will and already have gone elsewhere for the most part. This would be much worse if their lending side collapsed.

[KJHburg]

DB employs 900 people in Cary at their global technology center near where I'm at today.

[DH17]

10 hours ago, KJHburg said:

DB employs 900 people in Cary at their global technology center near where I'm at today.

My roommate interned there back in college. Missed a bad situation it seems.

[KJHburg]

Biggest econ development projects in NC so far this year and bold ones are in the Charlotte region and or our primary tv market LOL. 

Here’s a look at the job wins announced by the North Carolina Department of Commerce through June 30:

Lowe’s: 1,600 jobs, Mecklenburg County
Chewy: 1,200 jobs, Rowan County
Greenheck Group, 400 jobs, Cleveland County
CleanAire, 305 jobs, Wilson County
Aetna, 300 jobs, Guilford County
Pacon Manufacturing Corporation, 299 jobs, Brunswick County
Parexel International Corporation, 264 jobs, Durham County
SynergyLabs, 237 jobs, Burke County
Design Foundry, 202 jobs, Catawba County
Cellectis, 200 jobs, Wake County
AveXis, 200 jobs, Durham County
Broad River Retail/Ashley HomeStore, 161 jobs, Johnston County
BestCo LLC, 141 jobs, Iredell County
VBC Manufacturing, 130 jobs, Richmond County
Pella Corporation, 124 jobs, Rockingham County
KriGen Pharmaceuticals, 100 jobs, Harnett County
AmeriQual Aseptic, 76 jobs, Montgomery County
ENG Mobile Systems, 60 jobs, Cumberland County
Loba-Wakol, LLC, 24 jobs, Anson County
Superior Plastics Extrusion Company, 13 jobs, Richmond County

from this subscriber Triangle Business Journal article also

""Chris Chung, CEO of the Economic Development Partnership of North Carolina, says there’s a healthy pipeline of companies considering North Carolina for “close to a couple hundred active projects at this particular time.” Statewide, several of those are business recruitment efforts, he says. And some prospects are actively eyeing the Triangle.   The biggest barrier he sees across the board? A tight market for move-in-ready real estate.   “We still do see about 75 percent of our business recruitment clients who come in the door saying, ‘we would like to come into an existing space if one exists,” he says. If a space isn’t available, “it really is hard to get past that first discussion.”""

[RaleighHeelsfan]

Ok...so why can't they just build spec? Why does there always need to be a tenant always in place? Lets slap a supertall down and watch everybody lineup...just sayin...(yes, I play sim city)

Edited July 16, 2019 by RaleighHeelsfan

[KJHburg]

4 minutes ago, RaleighHeelsfan said:

Ok...so why can't they just build spec? Why does there always need to be a tenant always in place? Lets slap a supertall down and watch everybody lineup...just sayin...(yes, I play sim city)

Many of these prospects new shell buildings either warehouse or industrial facilities and those are a lot less built on spec but they do some around the Charlotte area.  In terms of office users I would say most markets in the state the major metro areas have space immediately available for tenants or at least temporarily until they can build what they want.  

[lancer22]

39 minutes ago, RaleighHeelsfan said:

Ok...so why can't they just build spec? Why does there always need to be a tenant always in place? Lets slap a supertall down and watch everybody lineup...just sayin...(yes, I play sim city)

Sadly, it is darn near impossible to get a bank to stroke you a check without pre-leasing. Spec office was all the rage in the 1980s and to a lesser extent in the mid 2000s and banks got burned by these loans. 

[kermit]

The next frontier of ED?

 

[A2.]

Sorry to be late. But the cycle is over...... the shovel in the ground gets built. Proposals are  done for. Market will crash in the next year. Good day kind UP folks ........ that said, the QC is positioned well. Skyline rises, stocks fall, and don’t borrow to pay for a waaaaaaaay overpriced property. A2 over and out.

Bonds, Bitcoin and Bullion 

Edited August 5, 2019 by A2.

[A2.]

If you’re really wild short the market on the next rally. Good luck

Trader joe (A2)

[lancer22]

21 minutes ago, A2. said:

Sorry to be late. But the cycle is over...... the shovel in the ground gets built. Proposals are  done for. Market will crash in the next year. Good day kind UP folks ........ that said, the QC is positioned well. Skyline rises, stocks fall, and don’t borrow to pay for a waaaaaaaay overpriced property. A2 over and out.

Bonds, Bitcoin and Bullion 

*takes bong hit*

 

I kid, I kid. Think we still have  lot of runway left.

 

Edited August 5, 2019 by lancer22
typo

[tozmervo]

40 minutes ago, lancer22 said:

*takes bong hit*

 

I kid, I kid. Think we still have  lot of runway left.

 

*heavy breathing*

 

[urbanlover568]

6 hours ago, A2. said:

Sorry to be late. But the cycle is over...... the shovel in the ground gets built. Proposals are  done for. Market will crash in the next year. Good day kind UP folks ........ that said, the QC is positioned well. Skyline rises, stocks fall, and don’t borrow to pay for a waaaaaaaay overpriced property. A2 over and out.

Bonds, Bitcoin and Bullion 

Yea dow went down 1000 points today. Markets are unfortunately catching on.  Charlotte got theirs built early, which is good with low vacancy still. 

[A2.]

33 minutes ago, mpretori said:

Yea dow went down 1000 points today. Markets are unfortunately catching on.  Charlotte got theirs built early, which is good with low vacancy still. 

Indeed. And remember just because a recession might be looming (and I believe will be here soon) doesn’t mean Charlotte will stop growing. It is just that it might not be an all out blitz of construction beyond 2020 like we’ve seen the last few years. I’m still watching net flows into the Sunbelt cities, and Charlotte is near the top. So net migration from the North and rust belt still bodes well longer term. That said, we all have to be impressed and thankful with what the QC has delivered over this last cycle. I’m truly shocked each time I come to town at how much has changed and where the city has come. We are on the cusp of being in the Big Leagues, and in another decade or so, will look back at amazement at what has been done. Much like ATL in the 80’s and early 90’s (but thought out and planned better in my opinion).

 

Ps—-this is not a rub on ATL, just saying that the early days of their development tended to be sprawl and less concentrated near the core. Charlotte has had the fortunes of seeing what not to do when developers come calling. Still not European or even as dense as we would like, but much better than what would have been had this happened thirty years ago. 

Edited August 6, 2019 by A2.

[urbanlover568]

1 minute ago, A2. said:

Indeed. And remember just because a recession might be looming (and I believe will be here soon) doesn’t mean Charlotte will stop growing. It is just that it might not be an all out blitz of construction beyond 2020 like we’ve seen the last few years. I’m still watching net flows into the Sunbelt cities, and Charlotte is near the top. So net migration from the North and rust belt still bodes well longer term. That said, we all have to be impressed and thankful with what the QC has delivered over this last cycle. I’m truly shocked each time I come to town at how much has changed and where the city has come. We are on the cusp of being in the Big Leagues, and in another decade or so, will look back at amazement at what has been done. Much like ATL in the 80’s and early 90’s (but thought out and planned better in my opinion).

I was in Atlanta recently and it was horrible. Charlotte was a much more top tier city compared to Atlanta. 

[A2.]

20 minutes ago, mpretori said:

I was in Atlanta recently and it was horrible. Charlotte was a much more top tier city compared to Atlanta. 

I will be there tomorrow and it’s horrid with respect to traffic. And remember the city of ATL is one tenth the population of their metro and that’s not a statistic to be proud of.  My wife is from Southern California and she has even commented that between our five years in ATL and then our fifteen in Charlotte, how much she appreciates the aesthetics of Charlottes  skyline versus the six mile string of buildings that Atlanta has. Ours is smaller for sure, but quite easy on the eyes !

 

 And let’s make no mistake in poking the bear. Atlanta is bigger and much more urban than Charlotte today, and I’m not looking to pick a fight. (They would crush us in any statistical measure). But we are building something in NC that will be the envy of any in the years to come. Bigger isn’t always better. The main thing is great transportation, cultural amenities, connectivity to neighborhoods, and density. We are working on it

Edited August 6, 2019 by A2.