COVID-19 CRE News: July Updates

Thanks to a surge of COVID-19 cases in new hotspots across the country, commercial real estate investment activity has slowed considerably. The Ground + Space team have been hard at work tracking the effects of the novel coronavirus on the commercial real estate industry, both in our home state of North Carolina and beyond. Below, we take a look at some of the top headlines from the first half of the month of July:

Decline in National Investment Activity

Owners and investors remain cautious regarding sales of retail assets. This trend has permeated markets across the country, especially those in fast-growing cities. Some locales that have seen steep drop-offs in commercial sales activity include Raleigh, Seattle, Nashville, Atlanta and even Washington, D.C. Historically, major markets such as New York, Miami, San Francisco and Los Angeles are the first to recover in terms of sales volume following economic downturns. That may not be the case this time around.

Any future increase sales activity will likely be tied to areas that can sustain recovery from both a public health and economic standpoint. There is a glimmer of hope on the horizon: Most markets around the country saw an increase in deal volume in the month of June. This could signal an uptick in deal velocity in the third and fourth quarters of 2020.

Retail Spending Increased in June

Retail sales in the United States rose approximately 7.5 percent in June. This is due to the increase in store openings across the country as retailers welcome back guests to their brick-and-mortar locations. In June and July, consumers have been spending more in four key sectors: automotive, clothing, furniture and electronics.

Although increased retail activity is a welcome harbinger of good news, continued recovery in this sector will be determined by the ability of cities and states to remain open in the face of rising COVID-19 infections. Something important to keep in mind: Despite this increase in activity, total retail sales for the second quarter of 2020 were still down by 8.1 percent.

Retailers Continue to Downsize Footprints

National retailers continue to downsize their retail footprints, and some have even turned to Chapter 11 bankruptcy proceedings for protection. New York & Company parent RTW Retailwinds is just one of many clothing retailers to join the likes of J.C. Penney, Brooks Brothers and Neiman Marcus in filing for bankruptcy.

Banking giant Wells Fargo recently announced a proposed $10 billion cut in annual expenses. This move will shrink the brick-and-mortar footprint of the nation’s third-largest bank substantially. In the short term, Wells Fargo plans to consolidate its brick-and-mortar locations, which would include not only bank branches, but field offices and corporate sites as well. The move comes as more and more Americans move to digital and mobile banking.

A Bit of Good News

While it’s disheartening to hear that many retailers are shutting their doors permanently, others have found a way to pivot their business models to align with recent events. One such retailer is Tropical Smoothie Café. Since March 1, 2020, the fast-casual café concept has opened 35 new locations. Additionally, the company has signed at least 103 new franchise agreements in 2020.

Chipotle is also looking to expand its footprint and plans to hire as many as 10,000 new employees during the next few months. The concept now has a presence in 32 states, and many of its new restaurants feature a drive-thru lane (dubbed “Chipotlane”). Chipotle expects that more than 60 percent of its new restaurants will feature this “Chipotlane”—a measure that will allow more locations to remain open during the pandemic.

Ground + Space is Here to Help

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. We are committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The IRS 1031 tax deadline is less that one week away, so please contact one of our brokers for specialized guidance during this time.

Stay Safe and Informed

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.


Retail Closures and Other STNL News

Many retailers that found themselves struggling in a pre-coronavirus world dominated by increased e-commerce adoption rates have begun to restructure their business models or close their doors for good. Current research shows that between 20,000 and 25,000 storefronts are expected to shutter forever by the end of 2020. This is a dramatic increase compared to the 9,300 store closures reported in 2019. At least 15 major retailers have filed for some form of bankruptcy protection.

What retailers are closing their doors and filing for bankruptcy? Are any retailers expanding their footprints amidst the nationwide pandemic? Let’s take a look.

Store Closures and Bankruptcies

As of early June, at least 4,000 storefronts are in the processing of closing. More than half of those can be accounted for by six major retailers, including: Pier 1, Tuesday Morning, GNC and JCPenney. Other retailers that have either filed for bankruptcy or announced store closures include: Papyrus, CMX Cinemas, Starbucks, Victoria’s Secret, J.Crew, Neiman Marcus, Macy’s, Payless, Dress Barn and Gymboree.

Pier 1 filed for bankruptcy in early February. Three months later, the company is ceasing all its retail operations and expects to close all of its remaining stores by October 2020. The company is currently working to liquidate the remainder of its assets. Discount home goods retailer Tuesday Morning joined Pier 1 in filing for bankruptcy in late May. The Dallas-based chain will permanently close at least 230 of its nearly 700 stores in the United States this summer. During the Chapter 11 bankruptcy process, the retailer hopes to renegotiate many of its leases so it can focus on improving product offerings in its remaining high-performing stores.

The health and nutrition chain GNC will close at least 900 of its retail locations by the end of 2020. CEO Ken Martindale pointed to decreasing mall traffic as one of the many reasons the company has decided to significantly reduce its footprint. GNC plans to reduce its mall count by nearly half. (Currently, mall locations make up about 23 percent of GNC’s retail footprint.) Another former mall staple—the 118-year-old company JCPenney—filed for bankruptcy in early May. The coronavirus pandemic had a dramatic effect on the department store chain, resulting in major decreases in store sales. The company hopes to continue doing business even while closing a at least 154 of its remaining 846 stores.

Some Good News

Although few retailers are focusing on expansion plans during the midst of this nationwide pandemic, some notable brands—most in the quick-service restaurant (QSR) sector—are hiring more workers. Fast-food chain Dunkin’ announced its plan to hire at least 25,000 new employees nationwide. Taco Bell made a similar announcement in late May as it unveiled its plan to hire 30,000 workers this summer.

Because of the relative strength of QSR assets, they are at the top of investors’ lists as many in 1031 exchanges prepare for the July 15 IRS tax deadline. Single-tenant, net leased assets are still trading even as investments in department stores, strip centers and other non-essential retailers have been put on hold. Retail assets valued between $1 million and $5 million that feature essential tenants like Dollar General, McDonald’s, 7-Eleven and Wawa are doing well, although they are being sold at higher cap rates.

Navigating These Uncertain Times

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. We are committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.

Stay Healthy and Safe

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.


Commercial Real Estate Sales During COVID-19

Although commercial real estate sales have plummeted during the COVID-19 pandemic, some assets are still proving valuable to investors across the globe. Which retail assets are still selling during lockdown? Essential businesses.

What’s an “essential” business?

The exact definition of “essential” varies by location, but the Department of Homeland Security issued guidance on the subject in mid-March. Generally speaking, essential businesses include the following: supermarkets and grocery stores; big-box stores; pharmacies; convenience and discount stores; hardware stores; banks; gas stations and auto repair shops; and pet stores, among others.

Nonessential businesses, on the other hand, tend to be recreational in nature and do not provide needed services related to food, health or financial support. Restaurants fall into this category, but many state and local governments have allowed restaurants to remain open for curbside pick-up and delivery service.

What retail assets are selling right now?

The commercial real estate assets that have been most pursued by investors during the COVID-19 pandemic are single-tenant net lease (STNL) properties. Investors seeking a sense of safety in an uncertain economy are pursuing deals that feature a single-tenant property with a tenant that offers an essential service. These assets tend to boast net leases in which the tenant pays for most (if not all) of the property’s operating expenses.

According to data compiled by CoStar, investors have closed deals on more than 300 single-tenant properties since mid-March. These properties have been leased to tenants like CVS Pharmacy, McDonald’s, Burger King, Dollar General and Chick-fil-A.

Is there still a demand for STNL properties?

In short, yes. Net lease sales performed well in 2019, increasing by at least 11 percent to approximately $78 billion. The biggest driver in sales have been those investors engaged in a 1031 exchange. This particular type of transaction allows an investor to defer capital gains taxes by rolling profits from the sale of one property into a similar (or “like-kind”) property. Because of the COVID-19 pandemic, the Internal Revenue Service (IRS) extended the 1031 exchange deadline to July 15, 2020.

How can Ground + Space help?

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have two outstanding “essential retail” assets on the market right now. Our CVS Pharmacy listing features a NN corporate-guaranteed lease that was recently extended by 20 years. The Tire Choice property that is currently available is situated within a dense retail corridor in The Villages, Florida and boasts a NNN lease. Our team is committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.

How can I stay informed?

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.


The Effects of COVID-19 on Quick-Service Restaurants

Quick-service restaurants (QSR) have long been a popular source for convenient, low cost meals. These factors are increasingly important to consumers facing financial hardships due to loss of income from COVID-19. Contact-less delivery and low wait times are also important to these consumers. One of the easiest ways for restaurants to meet these needs is to utilize alternate forms of food delivery: drive-thru service, curbside pick-up and home delivery.

Getting Creative

Because many local and state governments have forced restaurants and bars to cease all dine-in services due to COVID-19, quick service-restaurants with drive-thru capabilities have seen increased traffic and demand from consumers. For recognizable brands that have a strong drive-thru system in place, a decline in dine-in customers has been met with a strong upsurge in drive-thru orders. These businesses are utilizing their drive-thru lanes to limit crowd size and enforce social distancing rules while continuing to serve customers. However, only about 20 percent of quick-service restaurants in operation today have drive-thru service.

Many restaurants that do not have drive-thru windows are now offering curbside pick-up. Home delivery services like Grubhub, DoorDash and Uber Eats have partnered with many independent and national restaurants to offer discounted—and in some cases free—delivery and commission fees. Other restaurants are creating home preparation kits of some of their most popular menu items, while others are offering frozen and prepackaged goods.

Case Study: Taco Bell

Leading quick-service restaurant brand Taco Bell has set the bar for enhanced restaurant safety via its Seven Enhanced Safety Steps across all of its 7,000 U.S. restaurants. These new protocols will include contact-less service and payment; employee temperature checks; extra sanitation options for customers; and much more. These safety protocols will undoubtedly be adopted and implemented in various ways throughout the QSR sector.

In addition to its enhanced safety guidelines, Taco Bell is offering customers the chance to recreate their favorite Taco Bell dishes in the comfort and safety of their own homes. For a limited time, the At Home Taco Bar will be available for patrons via delivery and contact-less drive-thrus nationwide. This new menu offering is an easy, safe way to feed a party of six for only $25. Additionally, Taco Bell is rolling out a series of recipe cards that will feature classic recipes from the Taco Bell Test Kitchen, along with recipes for Taco Bell-inspired cocktails.

On The Market

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have two outstanding QSR assets on the market right now. Our McDonald’s listing is a prominent outparcel that sits along an ever-expanding retail corridor in California, Maryland, and our Taco Bell listing is a rare triple-net (NNN) asset within the New York metropolitan area. Our team is committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.

Stay Informed

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.


The Coronavirus Pandemic Reshapes Retail

As many states look to reopen portions of their economies in the coming weeks and months, the team at Ground + Space are diligently tracking the effects of the novel coronavirus (COVID-19) on the commercial real estate industry across various sectors. Although the idea of returning to work is a welcome one in this uncertain economic climate, it’s important to acknowledge that companies will return slowly to an environment forever changed by this virus.

Post-Pandemic Outlook

According to reporting by the Swiss money manager UBS, the retail industry in the United States is heading towards a major shift. Current estimates show that the country stands to lose anywhere between 11 percent to 17 percent of its total store count by the year 2025. (This estimate is based on projections that e-commerce penetration will rise to 25 percent by 2026.)

Companies and retailers that already boast strong online operations and logistics networks—like Amazon, Walmart and Target—have continued to thrive during this pandemic as more and more consumers shop online. These powerhouse retailers are poised to take over market shares left behind as brick-and-mortar retailers close their doors.

The Continued Rise of E-Commerce

E-commerce sales have steadily risen over the past decade. As of the third quarter of 2018, e-commerce sales reached approximately 16 percent of total retail sales in the United States. This trend of rising e-commerce sales has accelerated considerably in response to the global coronavirus pandemic. Stay-at-home orders across the country that have stopped all non-essential business. These conditions have forced retailers both large and small to quickly adopt online marketplace platforms to service customers.

As households across the country make the shift to more online spending, struggling retailers will be forced to either pivot towards an omnichannel approach or rationalize their store counts and future brick-and-mortar expansion plans. Retailers like Macy’s, Inc. and JCPenney Company, Inc. have already made plans to close stores, and other vulnerable retailers are likely to do the same throughout the remainder of 2020.

COVID-19 Impact Across Retail Sectors

Each segment of the retail market landscape is feeling the effects of COVID-19 in different ways. If the UBS estimates are indeed correct, the loss of stores and revenue will be most pronounced in the following sectors: apparel and accessories; consumer electronics; and home furnishings. Because retailers like these make up a large portion of tenant rosters in enclosed shopping malls, many struggling regional shopping centers are expected to close. The retailers expected to weather the storm include essential businesses that are allowed to remain open during the global pandemic, as well as non-essential retailers like home improvement stores and automotive parts stores. Ground + Space has several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy.

Stay Informed

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.

How can Ground + Space help?

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. Our team is committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.


Just Sold: Orange City Shoppes in Orange City, FL

Ground + Space announced today the sale of Orange City Shoppes, a multi-tenant retail asset located in Orange City, Florida. Ground + Space Principal Michael Zimmerman exclusively marketed the property. The property sold at an admirable cap rate just three percent off the original listing price in an all-cash transaction. Additionally, the listing received multiple purchase offers.

The Orange City Shoppes tenant roster includes Aspen Dental, Spectrum and Orlando Health. These service-based businesses yield an added security with Internet-proof tenancy. The new, corporate guaranteed leases for all three tenants boast built-in rent increases and multiple renewal options. Also, there are minimal landlord responsibilities within the lease for ease of investment.

Orange City Shoppes benefits from its prominent location within Orange City’s main retail sector. The property is an outparcel to Target and sits across from a 107,000-square-foot Publix-anchored shopping center. There is a growing development commitment to the area, evidenced by AdventHealth Fish Memorial’s $100 million tower expansion less that one mile from the site.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman, Brett Sheldon and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. Ground + Space is rooted in more than 20 years of experience aimed at providing the best data, relationships and success rates in the business. Interested in commercial real estate investment? Looking to sell one of your net leased assets? Contact us today for a property evaluation or to discuss one of our current listings.


Just Sold: Palmetto Plaza in Miami Gardens, FL

Ground + Space announced today the sale of Palmetto Plaza in Miami Gardens, Florida. Ground + Space Principal Michael Zimmerman exclusively marketed the property, which sold to an all-cash buyer. Michael Zimmerman secured multiple offers for Palmetto Plaza within its first 10 days on the market, as well as several back-up offers. This extremely rare retail center was offered below the average market rent for the Miami metropolitan area.

Palmetto Plaza is a grocery-anchored retail shopping center that sits in one of the densest, high-traffic retail corridors in Miami-Dade County. The shopping center currently houses 38 businesses. The varied mix includes national, franchised and local tenants. The 175,045-square-foot property includes many investment-grade tenants like ALDI, Dunkin’ Donuts, Sherwin-Williams, Dollar Tree and Regions Bank.

This shopping center is just 15 miles from the heart of downtown Miami. Miami is the cultural, economic and financial center of South Florida. Visitors to the site have easy access to Interstate 95, Florida’s Turnpike and Miami International Airport.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman, Brett Sheldon and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. Ground + Space is rooted in more than 20 years of experience aimed at providing the best data, relationships and success rates in the business. Interested in commercial real estate investment? Contact us today to find out more about our current listings!


Net Lease Market Outlook

After a solid 2019 performance, the net lease industry appears to be headed for continued success in 2020. A combination of low interest rates, changes in the United States tax code and the desire for greater return on investments have caused high demand within the net lease market segment.

Lower Interest Rates, Greater Yields

At the start of 2020, many investors feared interest rates might increase, which would lead to a correction. Instead, interest rates have remained fairly low. Since the cost of capital is lower, buyers are free to invest money into larger deals. With this in mind, many commercial real estate owners are taking this opportunity to sell their smaller assets at superior price points. This, in turn, has created a steady supply of properties for potential buyers.

Slight Slowdown in Retail Development

A decrease in retailer development in certain markets has led to an inevitable slowdown in new retail development since 2016. However, the properties that are being built are extremely desirable for buyers. As always, newly built assets are sold at a premium due in part to their long lease terms and low maintenance costs. In addition to these new construction projects, resale properties have become popular in many markets.

Types of Properties in High Demand

The single tenant net lease (STNL) market has long been viewed as a stable investment vehicle. Guaranteed rents and known financials are just two of the many factors that make net lease assets ideal investments. The most in-demand properties in the STNL sector have a few things in common: these assets are brand-new construction in enviable locales with credit-backed tenants. Additionally, potential buyers prefer properties with Internet-proof tenants.

These preferences have led to the rise in popularity of quick-service restaurants (QSRs) among investors. Most trophy assets in the QSR market feature strong credit tenants whose profits are not hampered by Amazon and other Internet retailers. These lower-priced properties tend to have scheduled rental increases every five years and longer lease terms. Ground + Space currently has a McDonald’s for sale in California, Maryland that is a prime example of an enviable QSR asset. Other popular tenants in the QSR space include Starbucks and Dunkin’ Donuts.

Multi-tenant properties are also in high demand, especially those created via break-up strategies. To put it simply, a break-up strategy involves dividing a property into multiple parcels which can then be independently sold to different investors. This strategy is successful in part because it caters to the needs of a larger field of buyers. More buyers are in need of properties within the $2 million to $5 million range than larger properties with price tags of more than $30 million. The team at Ground + Space have worked with several property owners to facilitate break-up strategy sales of trophy assets in major markets.

About Ground + Space

Interested in maximizing your investment opportunities? Ground + Space is a leading commercial real estate brokerage firm that specializes in single-tenant and retail NNN investments. Contact us today to receive a full evaluation of your commercial real estate assets. We can help you determine whether now is a good time for you to sell your property.


Raleigh-Durham Industrial News

The Raleigh-Durham industrial market is currently posting some of the nation’s strongest fundamentals. In fact, this research-focused part of the state is growing faster than some major U.S. cities. As of the third financial quarter of 2019, just 1.7 percent of the industrial space in Raleigh is empty—a far lower rate than the five percent national average.

The Urban Land Institute ranked the Triangle No. 2 on its list of U.S. markets to watch for overall real estate prospects in 2020, and it’s easy to see why: steadily increasing asset values are drawing strong investor interest to the Triangle market. In fact, during the third financial quarter of 2019, industrial sales in the Triangle soared to $578 million.

Approximately one million square feet of space was delivered within the past 12 months, nearly all of which has been spoken for. Overall vacancy rates fell to just over four percent, while warehouse and distribution space vacancy rates dropped to a record low of 3.2 percent. Increasing demand for space from tenants has led to several new speculative projects throughout the Triangle region.

Industrial Market Highlights

Eastgate 540: A Charlotte-based development and investment firm recently broke ground on what will eventually become a 280,000-square-foot industrial building located within Eastgate 540. This 30-acre industrial park in a suburb just west of Raleigh was sold for $14.3 million in May 2019. All in all, a total of one million square feet of industrial space is slated for development at Eastgate 540.

Greenfield North 1201: A national developer has begun construction on a 165,291-square-foot speculative industrial warehouse in Garner, a suburb of Raleigh. Dubbed Greenfield North 1201, the property will make for a welcome addition to Greenfield North Business Park (currently 100 percent leased). Construction is scheduled to finish in July 2020.

Garner Business Park 70: Construction has begun on Garner Business Park 70, a four-building 625,000-square-foot industrial park off U.S. 70. A Cincinnati-based real estate firm plans to open the first of four buildings on the 50-acre industrial park campus in mid-2020. The property’s access to a major thoroughfare and proximity to the state capitol make it a prime location for warehouses, distribution centers and other industrial uses.

Interested in investing in North Carolina commercial real estate? Ground + Space is a leading commercial real estate brokerage firm based in North Carolina that specializes in single-tenant and retail NNN investmentsContact us today to find out more about our current listings or sign up for our mailing list to stay in-the-know on all that North Carolina has to offer.


Triangle News: October 2019

The constant influx of new and expanding businesses in the Triangle has led to an increase in the number of jobs now available in the area. This, in turn, has spurred the development of Class A office, retail and restaurant space to meet the needs of a rising workforce population, not to mention an influx of new single- and multi-family housing communities.

Raleigh

East Raleigh’s Continued Development: The city of Raleigh recently received a rezoning request that would allow for the development of a multi-story apartment community east of Interstate 440. The plans proposed call for a 204-unit multi-family complex with buildings up to four stories. This development would help add residential development to a part of the city scheduled for continued economic development. If this rezoning request is approved, the apartment community will join a long list of other single- and multi-family developments in the Triangle, all of which are set to meet the large demand for housing as the area’s population continues to soar.

Glenwood Avenue Project Begins Taking Shape: A Raleigh-based developer has begun construction on 3800 Glenwood, a five-story building with a mix of office and restaurant space set to open in 2020 just south of Interstate 440. This 118,000-square-foot building will feature 109,000 square feet of Class A office space and an additional 9,000 square feet of ground-floor restaurant space. Other features of the property include structured parking with a covered walkway for pedestrians, rooftop amenity space, artwork by North Carolina artisans and much more. 3800 Glenwood is part of the larger Glenwood Place master development plan, which spans a total of 40 acres.

Hilton-brand Hotel Coming to PNC Arena: Local sports fans will have a new place to stay overnight near the PNC Arena thanks to a new Hilton Garden Inn planned for a site across from the home of the Carolina Hurricanes and the N.C. State basketball teams. Current plans call for a 135,00-square-foot, seven-story hotel complete with 194 parking spaces, a conference center, a rooftop restaurant and bar, a grand ballroom and multiple meeting rooms. The Hilton Garden Inn Wade Park is just one of many new hotel projects scheduled for the Triangle area, outpacing development in the rest of the country. Although hospitality industry growth is beginning to slow across the nation, local occupancy rates continue to rise with increased demand.

Triangle Town Center Area’s Newest Addition: The Pointe at Town Center is one of the many new multi-family developments in the works in and around Raleigh. This 636,000-square-foot apartment community will include a mix of 484 senior living and affordable family apartment options. Plans include a mix of one-, two- and three-bedroom apartments spread across a total of 11 buildings. The undeveloped site sits just south of Triangle Town Center, which features tenants like Barnes & Noble, Macy’s, Dillard’s, H&M and North Carolina’s only Saks Fifth Avenue. This apartment community will help aid the demand for affordable housing options in the Triangle market.

Warehouse District Turned Retail and Dining Hub: Two Raleigh-based real estate firms have joined forces on another mixed-use revitalization project in the city’s Warehouse District. The project—known as the West Cabarrus Warehouses—calls for the renovation of two industrial buildings that will transform the area into a retail and dining hub, complete with the largest outdoor seating and live entertainment courtyard in the downtown area. Developers hope the project will add to and benefit from the constant activity around the Warehouse District.

West Raleigh’s Newest Apartment Community Breaks Ground: Construction has begun on West Raleigh’s newest apartment community, Clairmont at Trinity. A Virginia-based developer has plans to build a 153-unit complex on a 7.8-acre parcel near the Interstate 40 and 440 interchange along Trinity Road. The upscale community will feature a mix of studio, one- and two-bedroom apartments and is scheduled to open in summer 2020. Apartments will boast a wide variety of amenities like garden tubs, private patios and balconies, walk-in closets and complimentary washer/dryer units. The community will also feature outdoor seating areas, a dog park, a resort-style pool, a parking garage, bike storage and much more.

Durham

TopGolf Eyes Plans for Expansion in Bull City: A 46.3-acre parcel in Durham is slated to be the future home of a TopGolf-anchored mixed-use development. A South Carolina-based developer plans to build the TopGolf facility—which could cost upwards of $15 million—along with several other complimentary commercial spaces. Current proposals for the mixed-use center show plans for a 40,000-square-foot fitness facility, two hotels, 150,000 square feet of office space, a restaurant, a Sheetz gas station and an iFly Indoor Skydiving facility. (Sheetz and iFly Indoor Skydiving are currently under contract.)

Chapel Hill

New Development Proposed Near Bustling Mixed-Use Hub: A new mixed-use development has been proposed for Chapel Hill, long known as a high barrier-to-entry market. The town’s tax base is primarily residential, making this an ideal opportunity for Chapel Hill to attract more office and commercial development. Initial concept plans for Bella Vista at Meadowmont Village Center feature a 150,000-square-foot building featuring mostly office space, plus room for ground-floor restaurant and retail space. The proposed site is across from the UNC Finley Golf Course and is currently occupied by a parking lot.

Interested in investing in North Carolina commercial real estate? Ground + Space is a leading commercial real estate brokerage firm based in North Carolina that specializes in single-tenant and retail NNN investmentsContact us today to find out more about our current listings or sign up for our mailing list to stay in-the-know on all that North Carolina has to offer.