The Good News Report

[SoDoSoPa]

More good news on the MLS front;

Could also point to an expanded Ally presence here with the new tower and more brand exposure. 

[KJHburg]

More on the office market from JLL remember my post above about our high office absorption ( new move ins minus move outs)  was 3% of the total market size.

Well we are the 3RD BEST performing office market in the country in terms of % of total market size to amount absorbed in first half of 2019.  

1. Silicon Valley 5.3% market size 71 M + sq ft 

2. Austin  3.5%  market size   55 M + sq ft

3.  Charlotte 3%  market size 53 M + sq ft.

Charlotte in raw numbers of office space gobbled up took down more than these much larger markets Atlanta, Boston, Dallas, Denver, Detroit, Houston, Minneapolis, Philadelphia, Phoenix, San Francisco  just to name a few all those markets are much larger than Charlotte's.    Charlotte's office market is hotter than a doughnut at the Krispy Kreme Concord location. 

Don't believe me download the report for yourself

https://www.us.jll.com/en/trends-and-insights/research/office-market-statistics-trends

 

[Dale]

16 minutes ago, KJHburg said:

More on the office market from JLL remember my post above about our high office absorption ( new move ins minus move outs)  was 3% of the total market size.

Well we are the 3RD BEST performing office market in the country in terms of % of total market size to amount absorbed in first half of 2019.  

1. Silicon Valley 5.3% market size 71 M + sq ft 

2. Austin  3.5%  market size   55 M + sq ft

3.  Charlotte 3%  market size 53 M + sq ft.

Charlotte in raw numbers of office space gobbled up took down more than these much larger markets Atlanta, Boston, Dallas, Denver, Detroit, Houston, Minneapolis, Philadelphia, Phoenix, San Francisco  just to name a few all those markets are much larger than Charlotte's.    Charlotte's office market is hotter than a doughnut at the Krispy Kreme Concord location. 

Don't believe me download the report for yourself

https://www.us.jll.com/en/trends-and-insights/research/office-market-statistics-trends

 

Impressive.

[rancenc]

Good news for Salisbury/Rowan with jobs and expansion of a current employer.

https://www.salisburypost.com/2019/07/22/henkel-corp-announces-45-million-expansion-at-salisbury-facility/

[U_R_]

https://www.bea.gov/system/files/2019-07/qgdpstate0719.pdf

Top 10 Largest Economies.

1.) California $3,051
2.) Texas $1,828
3.) New York $1,720
4.) Florida $1,072
5.) Illinois $888,233
6.) Pennsylvania $809,311
7.) Ohio $694,830
8.) New Jersey $639,941
9.) Georgia $608,058
10.) Washington $584,034

11). Massachusetts 581,718

12.) North Carolina 580,187

Great news for North Carolina. I can't belive there is a little more than a 20 billion dollar difference between GA, WA, MA, and NC.

 

[kermit]

On 7/28/2019 at 8:12 PM, Ric0_0 said:

https://www.bea.gov/system/files/2019-07/qgdpstate0719.pdf

Top 10 Largest Economies.

1.) California $3,051
2.) Texas $1,828
3.) New York $1,720
4.) Florida $1,072
5.) Illinois $888,233
6.) Pennsylvania $809,311
7.) Ohio $694,830
8.) New Jersey $639,941
9.) Georgia $608,058
10.) Washington $584,034

11). Massachusetts 581,718

12.) North Carolina 580,187

Great news for North Carolina. I can't belive there is a little more than a 20 billion dollar difference between GA, WA, MA, and NC.

 

Apologies for my party-pooper hat today but I feel the need to point out that:

1) We are the 9th most populous state (and have the 12th largest economy)

2) Our per capita output is only $54,490 per person (using the 2018 BEA data) this ranks us at #33 (of 51). This is about $1,500 less than Georgia (which ranks 30th) and about $8,000 less than Virginia (which ranks 18th). Californians clock in at $75,000 per resident

3) We are actually moving backwards in terms of productivity -- our prosperity is declining relative to the remainder of the US.

4) On the plus side, North Carolinian's each produce almost $10,000 more stuff a year than South Carolinians (SC ranks 46th in output per capita).

There are lots of culprits here but economic development policy emphasizing rural areas and low skill jobs plus poorly managed (and funded) K-16 should take the bulk of the blame. Sprawl and relatively small cities follow closely behind (high density places are much more productive).

Edited August 1, 2019 by kermit

[KJHburg]

^^^ Washington State has a lot to do with Boeing plants and their high value products.  Georgia makes C-130s among other military aircraft  at Lockheed Martin in Marietta, Kia cars by the thousands in West Point  and Gulfstream Jets by 100s in Savannah.  NC does have HondaJet plan but not car plants though we do have truck assembly plants.   Savannah is also the 4th largest container port in the US and is bigger than Charleston and Wilmington combined.  Plus little old Brunswick GA is the #1 car importing entry in the USA.  

Rural Georgia is not much different from rural NC believe me but Atlanta is an economic powerhouse regardless of what we think about it. ATL is approaching 6 MILLION people more than NC's 2 largest metros combined. 

[joenc]

12 hours ago, kermit said:

Apologies for my my party-pooper hat today but I feel the need to point out that:

1) We are the 9th most populous state (and have the 12th largest economy)

2) Our per capita output is only $54,490 per person (using the 2018 BEA data) this ranks us at #33 (of 51). This is about $1,500 less than Georgia (which ranks 30th) and about $8,000 less than Virginia (which ranks 18th). Californians clock in at $75,000 per resident

3) We are actually moving backwards in terms of productivity -- our prosperity is declining relative to the remainder of the US.

4) On the plus side, North Carolinian's each produce almost $10,000 more stuff a year than South Carolinians (SC ranks 46th)

There are lots of culprits here but economic development policy and a poorly managed (and funded) K-16 should take the bulk of the blame. Sprawl and relatively small cities follow closely behind (high density places are much more productive).

If you look at Charlotte though, it has a GMP of $174 billion and Atlanta has $385 billion. Charlotte MSA has 2.5 million people and Atlanta MSA has 5.88 million people. 

Charlotte MSA per capita is ~$69k

Atlanta MSA per capita is ~$65k

Edited July 29, 2019 by joenc

[CLT2014]

12 hours ago, kermit said:

There are lots of culprits here but economic development policy emphasizing rural areas and low skill jobs plus poorly managed (and funded) K-16 should take the bulk of the blame. Sprawl and relatively small cities follow closely behind (high density places are much more productive).

Excellent points. When you look at the 2010 census, North Carolina has a very low percentage of residents living in urbanized areas compared to the other top 10 states in population. Take a quick drive around North Carolina's small towns, and the struggle and decline is still present. These areas have a large percentage of our population, and counter-act much of the prosperity of the Charlotte area and Triangle when statistics are at the state level. It is also hard to see a road forward for many of these towns becoming growing / more prosperous in the modern economy. 

2010 Census, Percentage of Population living in Urban areas for Top 10 states in population:
California: 95%
Texas: 84.7%
Florida: 91.2%
New York: 87.9%
Pennsylvania: 78.7%
Illinois: 88.5%
Ohio: 77.9%
Georgia: 75.1%
North Carolina: 66.1% <-- the biggest outlier among top 10 states

North Carolina's peer states for percent urbanized are South Carolina (66.3%), Alaska (66%), Wyoming (64.8%). 

Edited July 29, 2019 by CLT2014

[videtur quam contuor]

Only anecdotal here, but fitting with the data listed above: Georgia, our only peer in the list above, has a vast area of central and southern part of the state where the rural area reeks of desolation. A single franchise business is an amazing rare anomaly while driving through town after town with only a few children and old people on the streets. No new buildings or even late 20th century structures, even in county seats.* 

My experience is that the towns of our coastal plain are not such burnt out husks of the past, though occasionally events bring to awareness such places as Princeville. Our population has ALWAYS been more dispersed, mountains to coast, than neighboring states. The depopulation of the countryside is less apparent (to me) than our other southern neighbors, Georgia especially. Maybe my vision is biased, but it is my experience.

* I drove to and from Tallahassee a few years ago and chose the rural, two lane, blue highway route and discovered an America that my many years on and near the interstates had concealed from me. I recommend it for an opportunity to be grateful for what our forebears granted us without our effort. Also: beware small town Georgia speed traps. Those remnants  of the past are also still alive. It supports the town, which is of no comfort to me.

[Madison Parkitect]

46 minutes ago, tarhoosier said:

* I drove to and from Tallahassee a few years ago and chose the rural, two lane, blue highway route and discovered an America that my many years on and near the interstates had concealed from me. I recommend it for an opportunity to be grateful for what our forebears granted us without our effort. Also: beware small town Georgia speed traps. Those remnants  of the past are also still alive. It supports the town, which is of no comfort to me.

The interstate highway system is the single biggest thing that ruined small-town America.

[U_R_]

As an ATL resident here, I would definitely say rural NC is FAR better off than rural GA. Rural GA is honestly very depressing. You find tons of desolate towns all over, and the rest is farming. The farming is great, but even it has been hit been pretty badly because we lost a lot of pecan trees in GA. Even our smaller cities-Macon, Rome, Augusta, Columbus- all fall short economically compared to their peer cities in SC, AL, and NC. Now, these places are starting to pick up, but there is still a LONG way to go. Speaking of which, I have noticed that their is still a lot of corporate presence in many of the smaller NC cities. The only other city in GA with a large corporate presence is Columbus (and a little of Savannah).  Overall, I honestly predict that it won't be long before NC takes over GA. I love GA (I also like it more than NC 0-0), but the great disparity between Atlanta and "the rest of Georgia" is something that hurts the state. Even in Atlanta itself, there is such a great disparity between income and job opportunities between north and south. The north has all of the tech jobs etc. while the south is left with majority manufacturing and airport. This is why almost everyone loved the film industry because it brought a lot of great paying jobs to an area that severely needed them.

All in all, it is great  to see both states doing so well. In a way I am glad because certain members here really like to dig into the ATL, so maybe it's a wake up call that not all is bad.

[Nick2]

One of the things rural NC has going for it is that you're very very rarely more than an hour to a city with about 100k people or more because the actual metros and population centers are so spread out. So our rural areas are really kind of bedroom communities for the urban areas. 

For Georgia, the entire southern half of the state is super isolated.

[RaleighHeelsfan]

Yeah, in eastern NC you have a town of 20 plus thousand always less than 30 minutes apart.

[Nick2]

55 minutes ago, RaleighHeelsfan said:

Yeah, in eastern NC you have a town of 20 plus thousand always less than 30 minutes apart.

I think that's partly why the ncga is pushing for these connector interstates going through seemingly nowhere. 

[KJHburg]

Charlotte gets national exposure for its Envision Charlotte program and its next steps.

https://www.forbes.com/sites/natalieparletta/2019/07/15/how-a-whole-city-plans-to-close-the-loop-on-waste/#6c3831166e7a

[Desert Power]

11 hours ago, CLT2014 said:

Excellent points. When you look at the 2010 census, North Carolina has a very low percentage of residents living in urbanized areas compared to the other top 10 states in population. Take a quick drive around North Carolina's small towns, and the struggle and decline is still present. These areas have a large percentage of our population, and counter-act much of the prosperity of the Charlotte area and Triangle when statistics are at the state level. It is also hard to see a road forward for many of these towns becoming growing / more prosperous in the modern economy. 

2010 Census, Percentage of Population living in Urban areas for Top 10 states in population:
California: 95%
Texas: 84.7%
Florida: 91.2%
New York: 87.9%
Pennsylvania: 78.7%
Illinois: 88.5%
Ohio: 77.9%
Georgia: 75.1%
North Carolina: 66.1% <-- the biggest outlier among top 10 states

North Carolina's peer states for percent urbanized are South Carolina (66.3%), Alaska (66%), Wyoming (64.8%). 

That's why we're here

[Temeteron]

13 hours ago, CLT2014 said:

Excellent points. When you look at the 2010 census, North Carolina has a very low percentage of residents living in urbanized areas compared to the other top 10 states in population. Take a quick drive around North Carolina's small towns, and the struggle and decline is still present. These areas have a large percentage of our population, and counter-act much of the prosperity of the Charlotte area and Triangle when statistics are at the state level. It is also hard to see a road forward for many of these towns becoming growing / more prosperous in the modern economy. 

2010 Census, Percentage of Population living in Urban areas for Top 10 states in population:
California: 95%
Texas: 84.7%
Florida: 91.2%
New York: 87.9%
Pennsylvania: 78.7%
Illinois: 88.5%
Ohio: 77.9%
Georgia: 75.1%
North Carolina: 66.1% <-- the biggest outlier among top 10 states

North Carolina's peer states for percent urbanized are South Carolina (66.3%), Alaska (66%), Wyoming (64.8%). 

It’ll be interesting to see the numbers for the 2020 census...

[Nick2]

2 hours ago, Temeteron said:

It’ll be interesting to see the numbers for the 2020 census...

I'd wager NC is well above the 70% mark at this time. Maybe closer to 75. Slow rural and rapid urban growth should guarantee that.

Edited July 30, 2019 by Nick2

[atlrvr]

https://www.prnewswire.com/news-releases/mufg-to-tap-into-charlotte-technology-and-risk-talent-with-new-office-300893273.html

MUFG, one of the world's leading financial groups, has opened an office in Charlotte, NC for its Operations & Technology for the Americas group, Americas Risk Management group, and other select functions.

"This is a very exciting opportunity for MUFG to establish a footprint in the Charlotte market," notes Chris Higgins, Chief Information & Operations Officer for the bank.  "This region is known for having a talented labor pool that is skilled in financial services and technology innovation and modernization, and we are looking to invest in this valuable resource.  Charlotte's proximity to leading-edge colleges and universities also makes it an inviting marketplace for identifying and hiring professionals early in their careers who are skilled in these areas.  This reflects MUFG's drive to be on the forefront of customer-centric technologies and related services."      

This space is aligned with MUFG's expansion and growth plans and will serve as an important eastern U.S. hub for experts in technology, engineering, data, risk management, and other functions.  Plans call for hiring approximately 300 positions in this space, with team members to be housed in a contemporary, open environment with close proximity to colleagues to foster meaningful relationships and drive innovation and collaboration.

The bank will undertake an intensive recruiting effort to build capabilities through the hiring of local talent in the Charlotte metropolitan area.

[Commoner]

Steve Cummings (US CEO for MUFG) still has his home (and roots) in Charlotte.  MUFG's corporate bank is in NYC and retail in LA.  He wants to go from a large (West Coast) regional bank to a national top-10 deposit share bank.  I don't know what M&A deal makes sense for them, but it wouldn't surprise me to see a deal and then more investment here.  The Charlotte mafia used to be a thing, and it has its vestiges, and he's no doubt the best bet for its renaissance.  We had lunch with him in UBS's dining room a few years ago and he was still a Charlotte guy, through and through, 40 floors above Park Ave in a Swiss Bank.  

[tarwater]

MUFG already has many job postings up for Charlotte positions, mostly tech.

[lancer22]

Charlotte is so crazy right now that a 300 job announcement from a large foreign bank generates meh levels of excitement.

 

Edited July 31, 2019 by lancer22
Typo

[KJHburg]

^^^ Not with me this further diversifies the financial base we have here in town.  It is amazing to me how sticky Charlotte is and I am not talking about the weather either.  When an exec leaves one of the 2 large banks they want to stay here.   That is the story of US Bank and their now 800 employees, true with Ally GMAC Bank which  was full of big 2 bank execs and now this announcement today.  This is GREAT news for Charlotte just like Barings, all the other financial firms in this market.     Financial is a big part of our wheelhouse here in Charlotte and love this announcements.   They will start in WeWork but I bet they will want their own space uptown in the future hmmm  big opening up at BofA Plaza unless US Bank takes it  or a future tenant at the current Ally Center over on S Church.   Since 2007/2008 Charlotte has really really diversified its financial firms while at the same time growing the large ones (BofA and Wells).

I am so excited I might fight the traffic tomorrow over at the Concord Mills store and get a dozen of my favorites and then top it off with a lunch at Superica across from the new Lowes tower. 

From the Business Journal subscriber article

""Mitsubishi UFJ Financial Group Inc. (NYSE: MUFG) recently opened a new office in Charlotte as part of a plan to establish an eastern U.S. hub and create about 300 jobs here.  The Charlotte office, in WeWork space at 615 S. College St. in uptown, will house MUFG's operations and technology and risk management groups for the Americas.  “This is a very exciting opportunity for MUFG to establish a footprint in the Charlotte market,” said Chris Higgins, chief information and operations officer at MUFG Americas. “This region is known for having a talented labor pool that is skilled in financial services and technology innovation and modernization, and we are looking to invest in this valuable resource." They are recruiting for positions in technology, engineering, data and risk management.  The bank said it will hire locally for those positions through "an intensive recruiting effort." A spokesperson said MUFG plans to fill the approximately 300 positions over the next year and a half.  Teague previously worked as a managing director of innovation at Grant Thornton LLP. Prior to that, she held several roles at Bank of America Corp. (NYSE: BAC), spanning a nearly 12-year tenure there.""

https://www.bizjournals.com/charlotte/news/2019/07/30/international-financial-group-opens-uptown-office.html

quick search on their jobs website shows already 77 jobs posted in Charlotte! 

 

Edited July 31, 2019 by KJHburg

[atlrvr]

And no financial incentives either