Many industries are trying to find their footing again after the global upheaval of the COVID-19 pandemic; the commercial real estate market is no exception. According to data from the National Association of Realtors (NAR), acquisitions for large commercial real estate – properties or portfolios of at least $2.5 million – fell 28 percent year-over-year in the first quarter of 2021. However, there are several positive signs on the horizon thanks to the rapid development and deployment of vaccines, which is allowing people to safely return to the workplace and lead to a more normal pace of life.
Commercial Real Estate in Nashville, TN
Based on a report from the NAR, Nashville ranks among the top 10 commercial real estate markets for 2021. With several projects expected to break ground during 2021, an estimated 500,000 square feet in construction totals could soon be added to Nashville’s commercial real estate roster.
Due to the recent pandemic, many companies have opted to allow their employees to work remotely, and, as a result, Nashville’s sublet availability is at an all-time high, topping numbers seen during the Great Recession of 2009. Another great sign for the Nashville real estate market is Oracle’s recent announcement of seeking approval for their Economic Impact Plan. This plan, Oracle says, will bring roughly 8,500 jobs to the city and a proposed $1.2 billion investment to Nashville.
Commercial Real Estate in Charlotte, NC
Charlotte has now overtaken San Francisco as the nation’s 15th largest city. Due to its affordability, convenience and value, experts predict the Queen City will remain attractive to investors and tenants for years to come.
While vacancies and sublease spaces have been up, there are a number of exciting commercial projects being planned in Charlotte including Atrium Health’s proposed plans to build a four-year medical school in midtown and Amazon’s plans to construct a one million square foot distribution center.
Commercial Real Estate in Raleigh, NC
Raleigh also ranked among NAR’s 10 commercial real estate markets for 2021, confirming that smaller, more affordable cities are becoming increasingly popular for tenants and investors. With leasing activity lowering along with vacancies and subleases increasing, many experts predict that as more people get vaccinated, these numbers will return to a normal level and the real estate market will again be thriving.
One of the most notable projects on the horizon is the construction of a Google engineering hub in the close-by downtown Durham area which will eventually house up to 1,000 employees. Along with this news, Apple is also planning on expanding into this area by building a new campus which could bring in at least 3,000 jobs and more than $1 billion to the area.
Commercial Real Estate Opportunities
In all three of these locations there are a variety of types of commercial real estate that can be developed or acquired. This includes many of the following:
- Multi-family: One example is The Wayford at Concord in Charlotte, which was completed by Catalyst Capital Partners in 2020. Catalyst has seen exponential demand from both tenants and investors in this space and has numerous new ‘for rent’ town home communities in various stages of development across the Southeast.
- Retail: Whether outdoor shopping malls or smaller boutique shops are developed, retail space is a popular development no matter if the company is locally or nationally-based.
- Industrial: The industrial real estate market is a popular development for those looking to provide space for manufacturing or production companies to lease thousands of square feet and have multiple types of these businesses under one roof.
- Office: Another success story from Catalyst is 1600 Camden which is a 7,000 square foot office building in Charlotte. This “covered land” investment yields steady double-digit returns and land values continue to increase every year. Additionally, the outlook for future high-rise office or multi-family development looks very promising.
- Mixed-use: The Exchange at Rock Hill in South Carolina is a shining example of adaptive reuse. This mixed-use development is made up of a 229 unit multi-family development and more than 28,000 square feet of adaptive reuse buildings. Catalyst has established a Qualified Opportunity Zone Fund to rehab the existing buildings at the site and reposition them for higher quality retail and office uses as well as an impending multi-family development project.
Commercial Real Estate Professionals
Catalyst Capital Partners is thrilled to be involved with several commercial real estate development and acquisition projects in the Nashville, Charlotte and Raleigh areas. If you’d like to learn more about these markets, our team is here to help. Contact us now to start exploring the possibilities.