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.


Retailers Adjust to Changing Consumer Shopping Habits

As states across the country begin the process of reopening their respective economies, retailers are coming to terms with the financial and social impacts of COVID-19 on sales and consumer shopping habits.

Retail Sales Slowdown

The month of April saw an estimated $150 billion loss in retail sales. Those businesses and retailers deemed “essential” during the pandemic—think supermarkets, pharmacies and big-box stores like Target and Walmart—fared better than their non-essential counterparts. The relative success of essential retailers throughout the COVID-19 pandemic has helped offset struggling retail sectors. Movie theaters, health and fitness retailers, childcare centers, enclosed shopping malls and casual dining restaurants have all suffered during this extended national lockdown period.

Case Study: Best Buy

In the midst of the COVID-19 pandemic, the electronics and home appliance retailer Best Buy has shifted to something of a hybrid retail model. When the retailer voluntarily closed all of its stores on March 22, Best Buy pivoted to a curbside pick-up model that complemented its home delivery services. Best Buy’s curbside business model led to triple digit gains in its e-commerce channel. In late May, company executives reported that Best Buy was able to retain at least 81 percent of its sales volume and saw a staggering 155 percent increase in its online sales.

With states easing stay-a-home restrictions, the number of businesses that are now open to the public has started to increase. Best Buy has chosen to reopen select stores for appointment-only shopping, and stores that remain shuttered still offer curbside pick-up of online orders. Store remodeling plans of at least $800 million have been put on hold. Instead, Best Buy plans to spend at least $650 million on investments in technology and automation.

The Future of the Retail Experience

Best Buy’s successful hybrid retail model could be a blueprint that retailers can use in a post-pandemic world. COVID-19 has caused a majority of shoppers to adopt new behaviors, from utilizing e-commerce to buy non-essential items to limiting grocery store visits to once per week. Common practices during the pandemic like social distancing, limited in-store customer capacity and adjusted store hours are likely to be adopted by retailers for the foreseeable future.

In fact, the way retailers do business may never be the same again. Brick-and-mortar store layouts will inevitably change to accommodate new safety protocols. Fewer customers shopping in-store could lead to a shrinking retail workforce. Landlords and property management companies will undoubtedly seek new approaches to filling in vacant spaces in smaller shopping centers. Brands that have shown increased awareness of product and consumer safety during the pandemic are likely to gain more loyal customers. All of these and more will contribute to the ever-changing retail landscape, both in the United States and 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. 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.

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.


North Carolina’s Investment Prospects

Although the country’s economy as a whole is expected to slow over the next year, cities in secondary markets like North Carolina’s Raleigh and Charlotte are still on the rise. Investors are looking to these smaller cities for their strong economic gains and the potential for upside growth on a variety of commercial real estate investments. Office and multifamily assets are traditionally go-to property types for investors in these regions, but Raleigh in particular is continuing to expand its retail market.

Raleigh’s Meteoric Rise

By the end of 2019, Raleigh’s retail market reported increased rental prices of more than seven percent, making the city the highest rent growth area in the United States. The city’s retail market is driven by several factors, including its strong population growth, high wages, educated workforce and exceptional job market. The capital city boasts some of the highest median household incomes in the region, placing Raleigh just behind Austin, Texas as the second wealthiest city in the South.

Raleigh’s Retail Landscape

The suburban markets in Raleigh are experiencing just as much growth as the city’s downtown center as younger workers flock to areas on the outskirts of the urban core. Several large-scale multi-use developments will serve these areas and bring more than 470,000 feet of retail space to Raleigh in the coming years. One of the newest projects of this kind is an adaptive-reuse project that will transform old steel mills and warehouses into a collection of offices, shops and apartments.

Breaking Ground on Raleigh Iron Works

Situated northeast of downtown Raleigh near the Mordecai and Five Points neighborhoods lies the future site of Raleigh Iron Works. This multi-phase mixed-use project will preserve a portion of the city’s industrial past by repurposing former warehouses and steel mills from the ground up. Adaptive-reuse projects of this nature are gaining in popularity within the Raleigh market because they fit in well with the area’s thriving, innovative culture. The project’s $150 million first phase will contain 500,000 square feet of creative office space, 90,000 square feet of retail space and at least 220 residential units.

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.


Multi-Tenant Retail Investments Attract Opportunity

Retail is constantly changing, and so is the commercial retail real estate market. Although overall transaction numbers have been slightly down from years previous during the first three quarters of 2019, quality investments are still up for grabs. Savvy retail investors are gravitating towards investments with safer outlooks and focusing on smaller transactions. Even though private investors have historically focused more on single-tenant assets, a great many of those same investors are now looking to expand their portfolios by acquiring multi-tenant properties.

Benefits of a Multi-Tenant Investment

The addition of a multi-tenant commercial real estate asset to an investment portfolio can help lead to better yields and diversification within a single investment property. A multi-tenant property can help mitigate the risk of future tenant vacancies by sometimes offering shorter rental terms that can be adjusted and replaced as needed. Also, when a suitable, complementary mix of tenants are brought together within the same center, those retailers can leverage each other to help drive sales and foot traffic. This creates retailer dedication to the site and oftentimes increases the chances of the longevity of a tenant’s presence in a market.

Finding the “Right” Multi-Tenant Property

Not all multi-tenant properties are created equally, so it’s important to consider the strength of each individual tenant when making investment decisions. A strong, varied tenant mix is vital to the success of the investment as well as the property’s long-term value.  Right now, investments that are getting the most attention feature service-based businesses that offer Internet-proof tenancy via services that can’t be purchased online. Grocery-anchored centers that feature strong brands like Publix, ALDI or Wegmans (among others) are also at the top of investors’ lists.

Ground + Space Multi-Tenant Listings

We have three multi-tenant properties currently on the market that are ideal for any investor. All our listings feature a solid mix of national and regional tenants with a focus on service-based businesses. Each property is in the state of Florida, which has no state income tax.

Orange City Shoppes: The property benefits from a prominent, signalized corner location within Orange City’s main retail sector. The multi-tenant site is an outparcel to Target and is across from a Publix-anchored shopping center. The new, corporate-guaranteed NN leases for all three tenants provide for a quality investment with minimal landlord responsibilities. Additionally, each lease features built-in base term rental increases and options to renew. View more information about this property or download an Offering Memorandum by clicking here.

Shoppes at Eustis Village: This multi-tenant site features prominent signage and shares a signalized corner intersection with the Eustis Village Publix retail center. The property is comprised of three separate buildings that feature an ideal mix of national and regional tenants. (The seller recently spent over $100,000 to separate the property into three individual parcels.) The NNN leases provide for a quality investment with no landlord responsibilities. Additionally, there is a significant investor upside potential at 100 percent occupancy. View more information about this property or download an Offering Memorandum by clicking here.

Shoppes at Solaris: The site is located along busy Gulf to Bay Boulevard and is adjacent to Clearwater Mall and other national retailers like Target and Marshalls. Shoppes at Solaris also benefits from its proximity to Solaris Key Apartments, a four-story luxury apartment community in Clearwater. The multi-tenant property is now fully leased to quality tenants: Caribou Coffee & Einstein Bros. Bagels, Tijuana Flats and Curry Leaves Express. Each NN lease features varied lease terms and multiple options to renew. View more information about this property or download an Offering Memorandum by clicking here.

Interested in learning more about our multi-tenant property offerings? Ground + Space is a leading commercial real estate brokerage firm based in North Carolina that specializes in single-tenant and retail NNN investments. Contact us today to find out more about our current listings or sign up for our mailing list to stay updated on the latest commercial real estate news and offerings.


Just Sold: SimonMed Imaging in Orlando, FL

Ground + Space announced today the sale of a SimonMed Imaging in Orlando, Florida. This property is a newly constructed 8,680-square-foot asset situated at a corner location off busy South Orange Avenue. Ground + Space Principal Michael Zimmerman exclusively marketed the property and represented the seller, a North Carolina-based real estate investment company. The property sold to a foreign investor for an attractive cap rate of 6.3 percent.

SimonMed Imaging is one of the largest medical outpatient medical imaging providers and physician radiology practices in the United States. With a history dating back over 30 years, SimonMed Imaging now boasts over 75 locations across the country. The corporate-guaranteed NNN lease offers ease of ownership with no landlord responsibilities. Additionally, the lease features two options to renew, along with scheduled rental increases throughout the base term and option periods. The service-based business yields an added security with an Internet-proof tenancy.

The property is ideally situated near the Sodo Orlando development, which has transformed a former industrial block into a thriving activity center with marquee retailers, luxury apartments, office space and restaurants. In addition, the site is near three major malls—including the Mall at Millenia—that report sales of over $1,000 per square foot. SimonMed Imaging benefits from daily traffic counts in excess of 36,429 and an area daytime population of more than 1.2 million people. Visitors to the SimonMed Imaging site have easy access to Florida’s Turnpike and Interstate 4, along with all the many world-renowned tourist locations in and around Orlando.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman 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!


Chapel Hill Development News

There is no shortage of development activity in the bustling college town of Chapel Hill, North Carolina. In recent months, there has been a noticeable increase in construction activity along the much-traveled U.S. 15-501 corridor. From the redevelopment of the Glen Lennox area to a whole host of new mixed-use developments, the following projects are just a few examples of the broad wave of growth in the Research Triangle area.

Carraway Village

A Morrisville-based developer plans to turn a 55-acre parcel of vacant land adjacent to Interstate 40 into a luxury mixed-use development. This $100 million project will eventually include up to 837,000 square feet of retail and office space, along with apartments and a hotel. Located less than 10 minutes from the University of North Carolina at Chapel Hill, Carraway Village sits in the heart of Chapel Hill. The first phase of the project is now complete, with Carraway Apartments welcoming its first residents to its luxurious accommodations. Some of the development’s first-class amenities include a 16,000-square-foot Village Green, a 24-hour clubhouse, a saltwater pool, an elevated sky lounge and a fitness center. Additionally, the developers have secured leases from two major retail tenants: Starbucks and Chick-fil-A. The two retailers will help anchor one of the three proposed entrances to Carraway Village off Eubanks Road.

Glen Lennox

Back in 2014, the Town of Chapel Hill approved a 20-year development agreement that will breathe new life into the 1950s-era community of Glen Lennox. This development—which features residential and office space—is located on 70 acres of land east of the University of North Carolina at Chapel Hill. This plan will help restore and reinvigorate an historic community by bringing unrivaled residential, retail and office settings in the heart of the bustling town of Chapel Hill. The community’s Master Plan includes amenities like a hotel and a new shopping district, both of which will offer convenience and additional character that are highly suited to the neighborhood. The first phase of the Glen Lennox redevelopment includes a contemporary clubhouse that will become the cornerstone of the community. The clubhouse will include a saltwater pool and a state-of-the-art fitness center. Future phases include additional residential units, Class A office space and a bustling retail center.

Fordham Boulevard Apartments

Construction is well underway on yet another multi-story apartment community in Chapel Hill’s Blue Hill District along busy Fordham Boulevard. A former Days Inn was demolished to make way for the 3.4-acre project. Approximately 272 apartment homes will be available for rent upon the project’s completion. The building will be comprised of two sections split by a motor courtyard and pedestrian pass-through which will connect the site to a future public greenway.

Triangle Wegmans Locations

The New York-based grocery giant Wegmans plans to open multiple locations in the Triangle, including in Raleigh and Chapel Hill. The Raleigh store—the company’s 100th location—is set to open on Sunday, September 29, 2019. The Wegmans location in Chapel Hill will be built on the site of the former 14.7-acre Performance AutoMall between U.S. 15-501 and Old Durham Road. Additional stores will be opened in Cary, Holly Springs and Wake Forest. Why did Wegmans choose the Triangle? Some key factors in the company’s decision-making process were the area’s high rate of population growth as well as the quality of the educational institutions in the Research Triangle area. Wegmans is a store that sells more high-end products, which will do well in a market fueled by higher education.

South Green

Right next door to Chapel Hill sits the thriving town of Carrboro, which has its own new development: South Green. The first tenants recently opened for business and include Carrboro Yoga, Coronato Pizza, Noble Orthodontics and Craftboro Brewing Co., among others. South Green is a 45,000-square-foot retail development located just off Highway 54 and will act as a gateway to the southern entrance of Carrboro. The site is minutes away from the University of North Carolina at Chapel Hill campus and boasts a roundabout at the entrance, along with the largest pervious parking lot in the Triangle with LED lighting. Other site amenities include extensive landscaping, bike racks, a 24-hour ATM and a bike path.

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 investments. Contact 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.


Just Sold: CVS in Lexington Park, MD

Ground + Space announced today the sale of a CVS in Lexington Park, Maryland. This property is a 10,125-square-foot retail asset prominently situated within a fast-growing retail corridor. Ground + Space Principal Michael Zimmerman exclusively marketed the property and represented the seller, an Alabama-based corporation. The property sold for an admirable cap rate of 5.48 percent.

The NN lease features a corporate guarantee and an extremely rare 20 percent rental increase within the first option period. The tenant recently extended the base term of the lease by 20 years. The current lease term will last through 2037, signaling a strong commitment to the site.

The property sits at a signalized intersection with nearly 23,000 cars passing daily. Visitors to the site benefit from easy connections to major highways including Interstates 95 and 495. The CVS is close to an expanding retail area along Route 236 and Great Mills Road that features a strong mix of national and local retailers. Lexington Park itself is an affluent area with a prominent military presence that provides a $3 billion impact to the local economy annually.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman 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!


Residential Developments on the Rise

The city of Raleigh has the third-highest apartment growth in the United States, and the surrounding area has been a hotbed of investment and development activity in recent months. Greater Raleigh’s strong, steady population and job growth have led to an equally strong demand for new rental properties.

Raleigh

An already booming area of Raleigh, North Carolina will see continued growth if a proposed apartment complex is approved by the city. A Charleston-based developer plans to build a five-story apartment complex across from Crabtree Valley Mall. Named Crabtree North Apartments, the community will feature more than 150 units across 303,000 square feet, along with a 253-space parking deck.

What else is happening in Raleigh? The eastern part of the state capitol might soon be home to a new mixed-use development with a focus on residential units. If the city approves a rezoning request for a 55.99-acre parcel along Raleigh Beach Road, the previously undeveloped area will be split into three separate parcels. Each parcel will feature a mix of residential and non-residential properties. Developers anticipate a mix of around 600 single-family, attached and multi-family residences complemented by 200,000 square feet of retail, restaurant, office and recreational space.

Cary

Investors and developers alike are placing bets on the ever-growing city of Cary, North Carolina. In early August 2019, a Virginia-based real estate firm acquired an amenity-abundant residential community in Cary for $119 million. This sale represents the largest single-property apartment transaction in the area to date. The community—known as The Aster—features a plentiful mix of apartments and townhomes, along with numerous luxury amenities including a golf simulator, a pet parlor, an expansive wellness center and more. The community is ideally positioned between the Research Triangle Park area and Raleigh-Durham International Airport.

Another major project on the horizon for Cary is the redevelopment of the 87-acre Cary Towne Center property at the heart of the city. The struggling mall will get more than just a facelift. The new owners of the property plan to turn the site into a full-fledged mixed-use destination. Current plans would transform the two-story shopping mall into a luxury mixed-use center with a mix of retail and office space, townhomes, hotels and more.

Brier Creek

The growing demand for senior housing can be felt within the Triangle market. Cambridge Village Optimal Living has taken advantage of the recent boom in the seniors housing sector and just broke ground on its newest project: an $80 million senior living facility in Brier Creek. The Cambridge at Brier Creek is scheduled to open in 2021 and will feature 205 apartments along with health and wellness facilities, medical amenities, a pub, a salon and much more. Residents of The Cambridge will have access to fitness trainers, outdoor activities and social events. The community is conveniently situated across the street from WakeMed’s Brier Creek Emergency Care Unit.

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 investments. Contact 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.