The Bad News Report

[JRNYP2C]

On 5/21/2020 at 11:30 AM, Hushpuppy321 said:

I hope it happens in person and in Charlotte.  This region really needs the boost.  Maybe they can modify by doing these things:

Spectrum Center - 6000 people

Bojangles Simulcast - 5000 people

Bank of America Stadium  Simulcast - 20000 people
 

All locations during Convention activities with Masks, gloves and temperature check requirements all prior to entry.

Charlotte needs the RNC economic activity

This definitely is a creative and logical option.  The one thing I can think of here would be the cost for the venues and added security for the additional venues that were not part of the original convention - if I remember this correctly.  I remember when the DNC was here and I worked Uptown, we were basically told that we were not allowed to go into the office because we sat right in the middle of BofA Stadium, the Convention Center and Spectrum.  Pandemic rules that may still be in place, may help, and I think it would be interesting to see how the RNC would respond to something that would provide even MORE people to be part of the event than would have been if just Spectrum was used.

[rancenc]

JCPenney announcing a wave of closures including 5 in North Carolina.  

https://businessnc.com/jcpenney-to-close-154-stores-across-u-s-five-in-n-c/

[CLT2014]

34 minutes ago, rancenc said:

JCPenney announcing a wave of closures including 5 in North Carolina.  

https://businessnc.com/jcpenney-to-close-154-stores-across-u-s-five-in-n-c/

The Charlotte area's closure is across the state line. Rock Hill's mall is losing JCPenney leaving just Belk and Walmart as anchors. 

[rancenc]

11 hours ago, CLT2014 said:

The Charlotte area's closure is across the state line. Rock Hill's mall is losing JCPenney leaving just Belk and Walmart as anchors. 

I do believe that the only JCPenney stores left in the Charlotte area is Matthews and Concord and of course Pineville too.

[turbocraig]

Dang.  Buffalo Exchange on Central is now closing for good.  I've bought and sold stuff there, although not a ton.  But it was cool that we had one here...

[LKN704]

On 6/15/2020 at 3:48 PM, turbocraig said:

Dang.  Buffalo Exchange on Central is now closing for good.  I've bought and sold stuff there, although not a ton.  But it was cool that we had one here...

Very sad. I would frequently buy/sell stuff there during undergrad at UNCC. Always was fun to pop in and see what they had. They have some cool things, and a lot of good deals sometimes, especially on footwear. I bought this awesome pair of Doc Martens a couple years back at the Charlotte store for $30...a legit steal.

The Charlotte location was quite large, but nowhere as large as the locations I have been to on the West Coast. The DC location is tiny as well compared to the one in Charlotte.

Personally I think they likely struggled on Central. They might have been more successful if in the Southend or in NoDa. At the same time, looking at their other locations, except for their locations in Pittsburgh, Kansas City, and Richmond, all of their locations are in cities that have a larger "hipster" presence that would be more willing to shop at their store. Most UNCC would much rather wear a "Southern Tide" type shirt in my opinion. 

[kermit]

Layoffs at Belk Corporate offices:

https://www.charlotteagenda.com/223607/belk-conducts-another-mass-layoff-at-its-charlotte-corporate-office/

The Belks and Ruddick/Teeter get my nomination for the best business people in Charlotte this decade. Both of them saw the writing on the wall and knew exactly the right time to sell their core businesses. Given the nature of the department store industry, I won't be surprised if Belk is shutdown and sold for parts in the next five years.

 

 

 

Edited July 1, 2020 by kermit

[CLT2014]

I just can't see the Private Equity ownership tolerating cash burn and losses for much longer. Given the quarterly loss at Macy's, I'd expect Belk had a terrible quarter and is on life support. Their e-commerce transformation is still too slow and they are the last tenant left at many dead malls across the southeast where Sears, JCPenney, Macy's, et. have already closed up shop.. 

The PE firm is likely regretting the purchase. No way an IPO will be successful, nobody else really wants in the department store game, et. Not a ton of great exit strategies on this investment.

Edited July 2, 2020 by CLT2014

[KJHburg]

well the Charlotte office market tripped up the 2nd quarter not surprising how long it lasts remains to be seen.

From the Biz Journal today subscriber

""Charlotte's office market saw a dip in net absorption in the second quarter, the first time that's happened since 2017.   A JLL office report for Charlotte found the region saw negative absorption of 121,276 square feet market-wide in the second quarter, which represented the first months of stay-at-home orders and widespread U.S. impact from the novel coronavirus.  Brian Landes, director of research at JLL Carolinas, said there continues to be no new activity, except for deals hinging on lease expirations and transactions too close to the finish line to cancel. Many tenants who renew are opting for shorter-term deals, such as 12- or 18-month leases, Landes said.  "At least in terms of space absorption, there’s going to be a continually cautious approach," he continued, adding there's a "tremendous" amount of caution from all companies and sectors.""

https://www.bizjournals.com/charlotte/news/2020/07/14/charlotte-office-market-sees-negative-absorption.html

when JLL posts the report I will post it. 

Edited July 15, 2020 by KJHburg

[CLT2014]

11 hours ago, KJHburg said:

well the Charlotte office market tripped up the 2nd quarter not surprising how long it lasts remains to be seen.

From the Biz Journal today subscriber

""Charlotte's office market saw a dip in net absorption in the second quarter, the first time that's happened since 2017.   A JLL office report for Charlotte found the region saw negative absorption of 121,276 square feet market-wide in the second quarter, which represented the first months of stay-at-home orders and widespread U.S. impact from the novel coronavirus.  Brian Landes, director of research at JLL Carolinas, said there continues to be no new activity, except for deals hinging on lease expirations and transactions too close to the finish line to cancel. Many tenants who renew are opting for shorter-term deals, such as 12- or 18-month leases, Landes said.  "At least in terms of space absorption, there’s going to be a continually cautious approach," he continued, adding there's a "tremendous" amount of caution from all companies and sectors.""

https://www.bizjournals.com/charlotte/news/2020/07/14/charlotte-office-market-sees-negative-absorption.html

when JLL posts the report I will post it. 

My employer is a major consumer of Uptown office space. Certainly interesting times with regards to what our footprint should be long term. The company is maintaining productivity, salaried employees are working longer hours due to no commuting (while being "home" earlier for personal life), and employee engagement scores hit a record high for Q2 despite the pandemic, up 9 points. Working from home was a major theme / positive to the majority of employees. 86% of employees said some form of work from home options going forward would be desirable, with 45% preferring work from home all 5 days a week with the option to visit an office as needed. 

My assumption is the growth in the # of people in the office will slow, with some sort of work from home option offered. The footprint may grow physically still as we abandon a complete open office concept with less people packed in. 

Edited July 15, 2020 by CLT2014

[KJHburg]

Hotel update and it is not pretty.  Jobs in the lodging industry are down 31%  again 31% of the jobs have been lost since last summer in Charlotte area.  As for projects that use lodging tax receipts etc I would push all the timelines way out if they are lucky or cancel them altogether.  I am trying to do my part staying at hotels and have had no problems and leisure is somewhat back but business travel is just completely diminished.  And Charlotte is primarily a business travel market, secondary conventions and meeting, thirdly a leisure or special event market. 

From the Biz Journal article 

BY THE NUMBERS
BIG LOSSES
The Covid-19 pandemic has resulted in record unemployment, most visibly in leisure and hospitality — industries reliant on travel, events and business meetings, all of which have come to a halt in the past five months.  
Chart
103,700
Number of people employed in leisure and hospitality in the Charlotte MSA in June 2020, a 31.1% decrease from the same time in 2019. That number has rebounded since the market bottomed out in April, when 65,200 were employed in the industry locally. About 147,000 people were employed in leisure and hospitality last year.

SOURCE: U.S. BUREAU OF LABOR STATISTICS
ROOM COUNT
Off a development boom over the past several years, rooms across the Charlotte region are sitting empty as travel continues to be sluggish.
Chart
28,000   Number of hotel rooms in Mecklenburg County

6,000   Number of hotel rooms in uptown Charlotte

SOURCE: CHARLOTTE REGIONAL VISITORS AUTHORITY
ADDING UP
Charlotte’s hotel market has been hurting after what many say was the industry’s best year.
Chart
$234M  Amount hotel revenue declined between January and July in Mecklenburg County, compared with the same period of 2019.

“When you look at 2019, it was the single best year the hotel industry has ever had — ever,” he said. It will be hard for pricing to recover as long as there’s depressed occupancy.

https://www.bizjournals.com/charlotte/news/2020/08/20/hotel-owners-are-running-out-of-room-to-rebound.html

[CLTranspo]

Not totally sure if this is the right place for this, but interesting article summarizing the future issues for Charlotte and sunbelt cities in general compared to traditional northeastern and midwestern cities. We have good growth and some good assets but many challenges ahead. 
 

https://kinder.rice.edu/urbanedge/2020/08/06/charlotte-sun-belt-cities-urban-growth-housing-costs-income-inequality

[Blue_Devil]

1 hour ago, CLTranspo said:

Not totally sure if this is the right place for this, but interesting article summarizing the future issues for Charlotte and sunbelt cities in general compared to traditional northeastern and midwestern cities. We have good growth and some good assets but many challenges ahead. 
 

https://kinder.rice.edu/urbanedge/2020/08/06/charlotte-sun-belt-cities-urban-growth-housing-costs-income-inequality

I mean... housing is still pretty cheap in Charlotte, just not in the city center. Even then city center housing is leaps cheaper the NYC, Miami, Atl, SF, Houston, and even Nashville

[CLTranspo]

44 minutes ago, Blue_Devil said:

I mean... housing is still pretty cheap in Charlotte, just not in the city center. Even then city center housing is leaps cheaper the NYC, Miami, Atl, SF, Houston, and even Nashville

The article addresses a lot more than affordable housing, which I found interesting. Issues such as weather/climate, segregation, car dependency, income growth, and endowments of public and philanthropic funds

[Blue_Devil]

1 hour ago, CLTranspo said:

The article addresses a lot more than affordable housing, which I found interesting. Issues such as weather/climate, segregation, car dependency, income growth, and endowments of public and philanthropic funds

I agree all of those are issues other than weather. I’ll risk a hurricane 10/10 then have to deal with winter again. 

[CLTranspo]

2 hours ago, Blue_Devil said:

I agree all of those are issues other than weather. I’ll risk a hurricane 10/10 then have to deal with winter again. 

Definitely same moving from Denver/Chicago 

[elrodvt]

Huh, I can't imagine liking the dreadful summers here vs. Denver weather. To each his own.

Edited August 25, 2020 by elrodvt

[rancenc]

Dave and Busters are laying off 229 workers throughout the state including 58 in Pineville.  There is no mention of the operations in Concord at Concord Mills Mall though.

http://www.ncbiznews.com/dave-busters-to-lay-off-229-workers-in-north-carolina-due-to-covid-19/

[Temeteron]

5 hours ago, rancenc said:

Dave and Busters are laying off 229 workers throughout the state including 58 in Pineville.  There is no mention of the operations in Concord at Concord Mills Mall though.

http://www.ncbiznews.com/dave-busters-to-lay-off-229-workers-in-north-carolina-due-to-covid-19

Edited September 11, 2020 by Temeteron

[kermit]

yikes!

Quote

BREAKING: Duke Energy approached with buyout offer, report says Wall Street Journal says major Charlotte employer turned down offer from Florida's NextEra Energy; Would have been biggest utility merger in history

 

Edited September 30, 2020 by kermit

[Norm2]

I guess I am glad the buyout was turned down, but it makes you wonder who else might come out of the woodwork if Duke seems like a good target to buy.

[CLT2014]

Two questions:

1.) If we get NextEra, do they actually bury power lines and keep power on when there is a light breeze?

2.) Why is Duke's market cap over 50% less than NextEra?

Additional reports coming out saying NextEra is still working on a deal and a second offer.

Edited September 30, 2020 by CLT2014

[KJHburg]

Just checked out Nextera's HQ in Juno Beach suburban 3 story office building and with a palm treed line parking lot.  all of this is interesting and wonder if a hostile takeover could happen or would state regulators even go with that in NC SC Indiana Ohio and Florida? 

[CLT704]

Wachovia 2.0.... 

If a deal were to come about, I wonder where the HQ would end up. 

[Norm2]

47 minutes ago, CLT704 said:

Wachovia 2.0.... 

If a deal were to come about, I wonder where the HQ would end up. 

I'm sure it would stay in Florida