The Economy in our region is truly on the mends. The mop up from the Great Recession is almost complete! With the final bank owned properties going under contract and the reserves that the banks have are dwindling, we are seeing prices start to adjust and find normalcy.
Financing remains a tough hurdle and private equity is still the major player in financing, however under the right conditions many businesses may be able to get a loan. <- Sarcasm intended, we have sent several clients for financing at local and regional lenders having them go down the road to be rejected on the financing of a second location or a investment property.
The Commercial Real Estate Leasing Market is tightening in the Wilmington NC MSA, and regionally it seems to be true in Fayetteville, Greenville and New Bern. Jacksonville NC is in buildout mode with new properties coming on the line and available land going under contract. Wilmington and Brunswick County are seeing a major increase in interest level from anchors with additional/small shop space being deemed as too pricey $$$$ from local tenants. The interest level is there and tenants are beginning to accept that if they want to relocate from small shop unanchored strip centers the way to do it is to relocate to the newer properties.
Last October UNCW held the Wilmington MSA Economic Forecast. A lot of good information from a National and Local Perspectives where had. The presentation can be reviewed hereNational and Regional Outlook Fall 2014 . And while not overly positive the signs are there that South Eastern North Carolina is about to go into a Development mode again, its not a matter of if, but when.
Nationally the National Association of Realtors released the February 2015 Commercial Market Place update and it is basically stating that Nationally we have recovered and we are in growth mode where some markets folks are litterally downsizing some current tenants to make room for new start up companies or expansions of other’s.
The NAR Report can be reviewed here.2014-q4-commercial-real-estate-market-survey-2015-02-27