The Good News Report

[rancenc]

List of winners from the recent NC Main Street awards which includes several cities and towns in the Charlotte area.

https://www.nccommerce.com/news/press-releases/nc-department-commerce-honors-2020-nc-main-street-awards-winners

[KJHburg]

Walmart is featuring Metrolina Greenhouses in a national Buy American ad.  Metrolina helps propel Mecklenburg county into one of the top agricultural counties in the state.  (and yes you read that right)  Drive by it in Huntersville. 

Lowes also buys from Metrolina.  I have toured there years ago and it is unbelievable in size and scope.

Walmart TV Commercial, 'Plant' - iSpot.tv

 

https://www.metrolinagreenhouses.com

[KJHburg]

and 100 new jobs with Ohio based logistics firm in SW Charlotte.

""Cincinnati-based Total Quality Logistics is adding 100-plus new jobs to its Charlotte operations. The new positions will focus primarily on sales positions but will also include jobs in operations and customer service, among other areas. TQL's Charlotte office is at 820 Forest Point Circle, just off West Arrowood Road and Interstate 77 in south Charlotte, according to its website. The company employs well over 100 people in Charlotte currently.""

Total Quality Logistics to grow Charlotte workforce, adding 100-plus jobs - Charlotte Business Journal (bizjournals.com)

[rancenc]

Let's see if Georgia's political woes translates into gains for NC's film industry!

https://www.bizjournals.com/triad/news/2021/04/06/nc-film-industry-could-gain-from-georgia-politics.html

[KJHburg]

NC is the 2nd best state to work for home.  I am not sure how this affects our office market but I think it is the type of jobs we have in the Charlotte and Triangle areas.

10 Best States for Working from Home | Wealth Management

[KJHburg]

File this under good news bad news neutral news. 

Charlotte office market seems to be stabilizing in 1st Q2021 with still small negative absorption according to this report by JLL and Biz Journal article.

Local office activity starts to increase, but Covid effect on space needs remains uncertain - Charlotte Business Journal (bizjournals.com)

""After a year of sublease space increases and few new transactions, the first quarter saw -59,591 square feet of net office space absorption in Charlotte, according to JLL research. It's still not the positive absorption numbers the market saw pre-Covid-19 but is a less dramatic decline in occupancy than was observed throughout 2020.""

 ""Five tenants control about 60% of the office space in uptown, so if a major space reduction is in play for even one of those users, it could have a material impact on the CBD.  "Charlotte would be in a bit of a pickle because (banks and financial services) are some of our biggest tenants," McConnico said. "Any large move-outs could really impact (us) but it would mostly be concentrated in the CBD."""

however the article states most big employers want to get people back to the offices first before deciding on future space needs and most think most office workers will be in offices 3-4 days a week with certain days remote.  

[a2theb]

22 hours ago, KJHburg said:

File this under good news bad news neutral news. 

Charlotte office market seems to be stabilizing in 1st Q2021 with still small negative absorption according to this report by JLL and Biz Journal article.

Local office activity starts to increase, but Covid effect on space needs remains uncertain - Charlotte Business Journal (bizjournals.com)

""After a year of sublease space increases and few new transactions, the first quarter saw -59,591 square feet of net office space absorption in Charlotte, according to JLL research. It's still not the positive absorption numbers the market saw pre-Covid-19 but is a less dramatic decline in occupancy than was observed throughout 2020.""

 ""Five tenants control about 60% of the office space in uptown, so if a major space reduction is in play for even one of those users, it could have a material impact on the CBD.  "Charlotte would be in a bit of a pickle because (banks and financial services) are some of our biggest tenants," McConnico said. "Any large move-outs could really impact (us) but it would mostly be concentrated in the CBD."""

however the article states most big employers want to get people back to the offices first before deciding on future space needs and most think most office workers will be in offices 3-4 days a week with certain days remote.  

My thought is that the banks are gonna want butts in seats at an office after this all concludes. Even with splitting days 3 in 2 at home, most people still want their own workspace. Our Charlotte office makes us "hotel" desks which is a huge pain and the main reason I stuck around the house pre-COVID.

[InTheYear2000]

4 minutes ago, a2theb said:

My thought is that the banks are gonna want butts in seats at an office after this all concludes. Even with splitting days 3 in 2 at home, most people still want their own workspace. Our Charlotte office makes us "hotel" desks which is a huge pain and the main reason I stuck around the house pre-COVID.

I work for one of those five tenants and we are back as soon as the optics are tenable. It's been discussed and analyzed at length and in the measurable functions like lines of code written we are about 85% as productive in the current setup. The timing is likely start of the school year but that could be moved up if a peer makes a move first.

On the other topic, the drama over shared desks is hilarious to me. I've seen toddler like reactions over somebody sitting next to the person they want to sit next to. I could care less either way, but you are right outside of our grads and younger people in general there is a real hate for the "coffee shop office". 

[Blue_Devil]

8 hours ago, InTheYear2000 said:

I work for one of those five tenants and we are back as soon as the optics are tenable. It's been discussed and analyzed at length and in the measurable functions like lines of code written we are about 85% as productive in the current setup. The timing is likely start of the school year but that could be moved up if a peer makes a move first.

On the other topic, the drama over shared desks is hilarious to me. I've seen toddler like reactions over somebody sitting next to the person they want to sit next to. I could care less either way, but you are right outside of our grads and younger people in general there is a real hate for the "coffee shop office". 

My Bank wants us back in full in the fall. I think that is what all the big ones are pushing. BOA and Wells are September, Ally October

[a2theb]

23 hours ago, InTheYear2000 said:

 

On the other topic, the drama over shared desks is hilarious to me. I've seen toddler like reactions over somebody sitting next to the person they want to sit next to. I could care less either way, but you are right outside of our grads and younger people in general there is a real hate for the "coffee shop office". 

Its not even that I hate it, I just always end up reserving a desk that is taken by a team that is in the office full time but doesn't reserve desks because its an unspoken rule that the area they are in is theirs. Then I end up sitting at some uncomfortable high top table with just my laptop accomplishing nothing for an hour before I just pack it up and go home lol

[tozmervo]

I've talked to many people who have told me that "shared desks" and "desking" are total illusions. 

I think it's also totally demoralizing. Like, "here's a temporary desk. Don't get comfortable. You're disposable to us."

[JRNYP2C]

6 hours ago, tozmervo said:

I've talked to many people who have told me that "shared desks" and "desking" are total illusions. 

I think it's also totally demoralizing. Like, "here's a temporary desk. Don't get comfortable. You're disposable to us."

I agree with this.  In Ballantyne, we no longer have assigned seats (as of December 2020), but b/c I'm part of HR, we have a "neighborhood" area on the 3rd floor.  With the restocking of this building, we were told it is a first-come, first-serve scenario with seats.  Personally, with no commute for over a year and a half (by the time we are cleared to work in the office), I believe I have proven that my job can be done remotely almost 100% of the time.  There is very little that we do or have done over the past year to go all electronic from a documentation standpoint.  So no more printing and filing.  We have soft phones tied to our laptops, so we don't necessarily HAVE to be in the office to take a call.  With no commute, I can honestly say that my overall health is MUCH better.  I'm nowhere near as stressed out with dealing with the traffic on the interstates.  My physical health - not so much.  Sitting in front of the work laptop for longer hours and the overall have made me gain the "covid 19" so to speak!!  

High level, I know I have mentioned this before, but with the massive cost savings initiative that Wells is undergoing, this pandemic was almost a blessing in disguise.  The need for additional office space/real estate, has been redefined and they can shrink their footprint outside of closing bank branches.  There is still a TON of open space on Harris Blvd that is in dire need of remodeling.  So, moving people out of Uptown is still on the list for WF, but the immediate need to move them to suburbia (aka cheaper seats broadly speaking) is probably helpful in the long run.  I hope to continue to work from home for a longer time beyond September and will try to work it out that I go in only when absolutely needed to be seen in person.

I'm sure there are managers that need that group mentality and need to have everyone around them for nesting purposes, or micromanaging purposes - and thankfully, that does not describe my management team.  I truly think that a wide swath of workers, across all age groups, has adapted to what has basically been a formative shift in the physical workplace over the past year.  Some haven't had the luxury of working from home.  Some have had to set up shop on the dining room table, or in the bedroom, or wherever else they could find space.  So I get the uphill battle some have dealt with.  For me, I am lucky enough to have a spare room that I can spread out.  I had to shell out for a new desk from IKEA and a better office chair, but I'll take that over 2+ hours of my day taken up sitting in the car.

@tozmervo - the "disposable" comment is still true in this day and age.  If it ever got to that point, at least some of us wouldn't have to go back to clear out a desk.  I'd just have to return equipment.  Hopefully, that won't happen for my group though!

[rancenc]

The state of NC has announced the dispersing of funds to various communities throughout the state to help facilitate job development and company investment.

https://www.nccommerce.com/news/press-releases/governor-cooper-announces-grants-rural-communities-attract-446-new-jobs-and-more

[KJHburg]

Census bureau prelim building permits for 2020 and we need even more housing in this metro.  

Building Permits Survey > Permits by Metropolitan Area Annual (census.gov)   you can download here 

Houston...68,415
Dallas Fort Worth ..60,062
New York...53,708
Phoenix...46,618
Austin...40,875   #5
Atlanta...31,627   #6
Los Angeles...27,074
Nashville...25,529   # 8
Washington...24,754
Charlotte...24,225    #10
Orlando...23,974
Seattle-Tacoma...23,456
Miami-Ft Lauderdale...21,834
MSP...21,408
Tampa-St Pete...20,052
Denver...19,566
Raleigh...16,958    #17
San Antonio...16,748
Jacksonville...16,361
Chicago...15,048

[KJHburg]

More good news bad news not so bad news:

In terms of the office space market JLL has come out with their 1st Quarter 2021 reports:

of the office markets surveyed which they are 55 only 2 reported positive absorption of office Richmond and Fairfield County CT  Charlotte with a small loss in occupancy was the 8th best with Nashville beating us at 6th best.  53 of the markets lost occupancy of office space but Charlotte's decline was small.

Cost of office space per square foot Charlotte middle of the pack $32.56 sq ft vs. NYC and San Fran still over $82 sq ft 

of the 55 markets Charlotte has the absolute 4th highest amount of office space under construction trailing only NYC, Silicon Valley and Boston

Charlotte has the 6th lowest vacancy rate at 13.3% national average 18.8%

so Charlotte is doing better than most of the country as we have not had large blocks of space vacated like in some markets.   Much of our under construction inventory is preleased like the Ally Bank Center but this will leave some vacancies elsewhere or Vantage Southend and Lowes tower which is heavily leased. 

Charlotte market is 54 million sq ft plus almost 6 million under construction. 

 

 

 

[Robbie Charlotte]

1 hour ago, KJHburg said:

More good news bad news not so bad news:

In terms of the office space market JLL has come out with their 1st Quarter 2021 reports:

of the office markets surveyed which they are 55 only 2 reported positive absorption of office Richmond and Fairfield County CT  Charlotte with a small loss in occupancy was the 8th best with Nashville beating us at 6th best.  53 of the markets lost occupancy of office space but Charlotte's decline was small.

Cost of office space per square foot Charlotte middle of the pack $32.56 sq ft vs. NYC and San Fran still over $82 sq ft 

of the 55 markets Charlotte has the absolute 4th highest amount of office space under construction trailing only NYC, Silicon Valley and Boston

Charlotte has the 6th lowest vacancy rate at 13.3% national average 18.8%

so Charlotte is doing better than most of the country as we have not had large blocks of space vacated like in some markets.   Much of our under construction inventory is preleased like the Ally Bank Center but this will leave some vacancies elsewhere or Vantage Southend and Lowes tower which is heavily leased. 

Charlotte market is 54 million sq ft plus almost 6 million under construction. 

 

 

 

wow, beating out places like Atlanta, Seattle, Austin and Miami in absolute terms on office space construction?  Would never have guessed that.

[KJHburg]

somehow I missed this national real estate firm CBRE rates Charlotte metro as the 10th best development opportunity place in country over a range of factors. 

Charlotte Secures Top 10 Spot on CBRE’s Inaugural U.S. Development Opportunity Index | CBRE

and the peer cities mentioned many times that are ahead of us are cities like Atlanta, Dallas, Austin and  yes Raleigh. but better than Nashville #20 for example.  

You can download the whole report from that link above. 

 

[atlrvr]

https://www.google.com/amp/s/abc11.com/amp/apple-research-triangle-park-traingle/10547896/

 

Long rumored, but finally announced.  Apple opening a East Coast engineering campus in RTP.  3000+ jobs.  Good for NC and rising tides and all that...

[KJHburg]

30 minutes ago, atlrvr said:

https://www.google.com/amp/s/abc11.com/amp/apple-research-triangle-park-traingle/10547896/

 

Long rumored, but finally announced.  Apple opening a East Coast engineering campus in RTP.  3000+ jobs.  Good for NC and rising tides and all that...

This is indeed great news for NC as a whole.  Apple has owned this land for several years when they announced their massive expansion out in Austin but they kept this land.  Along with Google opening an engineering hub in Durham and now this massive Apple campus it puts more focus on NC as a whole and Charlotte will indeed benefit in the long run. 

Apple picks Triangle for new $1B campus, thousands of jobs paying $187,000 minimum | WRAL TechWire

[Matthew.Brendan]

Time to dust off my resume, good grief.

[hokiehigh]

7 hours ago, atlrvr said:

https://www.google.com/amp/s/abc11.com/amp/apple-research-triangle-park-traingle/10547896/

 

Long rumored, but finally announced.  Apple opening a East Coast engineering campus in RTP.  3000+ jobs.  Good for NC and rising tides and all that...

RTP is on a roll and good for them!  It will be interesting to see how many other well known tech companies they can add to the area.    Hopefully Charlotte can pull some better jobs too.   I know we just got Centene and Robinhood but it seemed more focused on call center/ops.

Maybe with the new grown RTP can move up the list for a MLB team in NC!

[KJHburg]

7 minutes ago, hokiehigh said:

RTP is on a roll and good for them!  It will be interesting to see how many other well known tech companies they can add to the area.    Hopefully Charlotte can pull some better jobs too.   I know we just got Centene and Robinhood but it seemed more focused on call center/ops.

Maybe with the new grown RTP can move up the list for a MLB team in NC!

Centene's average salary is $100,000 or so as it is not a call center though that maybe a small part.  It their technology center.  Robinhood's jobs pay average of $87K.   Apple will draw more attention to NC in general and both Charlotte and Raleigh Durham will benefit. 

[RANYC]

7 hours ago, KJHburg said:

This is indeed great news for NC as a whole.  Apple has owned this land for several years when they announced their massive expansion out in Austin but they kept this land.  Along with Google opening an engineering hub in Durham and now this massive Apple campus it puts more focus on NC as a whole and Charlotte will indeed benefit in the long run. 

Apple picks Triangle for new $1B campus, thousands of jobs paying $187,000 minimum | WRAL TechWire

Just to clarify the headline, after 3 years, these jobs are forecast to pay an average of 187,000, with the minimum salary at 168k.  Definitely mega high-paying jobs.

The TechWire article references the Centene project and brings up the variance between the Apple job salaries and those of Centene.   Centene is still a blockbuster win for Charlotte because they actually threw out possible job figures of 6000+.  The 3k were just the numbers that were a basis for the incentives package.    

[rancenc]

Not only did the state and the Triangle win the Apple East Coast operations site, but the same area was also awarded the 120th La Quinta Inn in Selma.....!!!!!!!https://www.prnewswire.com/news-releases/wyndham-hotels--resorts-announces-opening-of-120th-la-quinta-hotel-with-del-sol-prototype-located-in-selma-nc-growing-the-brand-to-nearly-940-locations-worldwide-301276997.html

Edited April 29, 2021 by rancenc

[KJHburg]

Buried in this Apple announcement is a lot more spending at their Maiden Catawba County data center.  

""And the business investment isn’t just in Research Triangle Park, a project briefing memo shows. Some of the promised dollars will go to Catawba County, where Apple operates a data center. "But all of the job creation related to this project will occur in Wake County,” the summary reads.   In Apple's $1 billion investment, $552 million will go toward real property construction and improvements in Wake County, with $308 million going toward Catawba County. The project also involves $6 million in personal property in Wake County and $140 million in Catawba County, records show. ""    Last time I heard the Apple data center has 400 employees and contactors working there.  

from the Triangle Biz Journal    How NC triumphed over Ohio to win $1 billion Apple campus in RTP - Triangle Business Journal (bizjournals.com)

also a fund that will help all of North Carolina:

""Apple will also establish a $100 million fund to support schools and community initiatives in the greater Raleigh-Durham area and across the state, and will be contributing over $110 million in infrastructure spending to the 80 North Carolina counties with the greatest need — funds that will go toward broadband, roads and bridges, and public schools.""

from Apple press release 

Apple commits $430 billion in US investments over five years - Apple

and remember NO incentives paid until they meet job requirements as NC has a great incentive program that requires thresholds to be met and clawbacks are possible if they don't.  However I believe that Apple will create many more than 3000 jobs in NC in the coming years.