COMMERCIAL REAL ESTATE & CONSTRUCTION CONSTRUCTION OVERVIEW OVERVIEW
Steve Hepler Raleigh Office Leader LS3P
What makes the Triangle a great place to do business? The Southeast as a whole is a target for people moving from the West and North, particularly in the last year and a half. Raleigh-Durham and Chapel Hill really seem to be prime targets of this influx. The Research Triangle Park is in the middle of all that. This region stands out for its competitive edge against other communities around the country, given its high-tech industry as well as the pharma and the biotech industries. Students who graduate here tend to stay here and grow a family. They consequently get involved in the community. It’s homegrown growth in addition to influx from other regions.
land deals, and residential demand for both single and multifamily has been as strong as I have ever seen it. Despite the pandemic, population growth continues and people are moving to this region whether they have a job or not. The pandemic has led people to move from apartments in densely populated cities to communities with open areas and amenities,” NAI Tri Properties Executive Vice President Jimmy Barnes told Invest:. Market fundamentals such as the tightening of vacancies, strong rent performance and ongoing construction characterize the state of the local multifamily market, factors buoyed by key economic development wins for the region. “Raleigh-Durham attracted leading technology and life science companies throughout the pandemic, with significant expansions including Google, Fujifilm, Amazon, Eli Lilly, Bandwidth and GRAIL. These developments will create thousands of new jobs and support renter demand over the next few years,” the 1Q21 NorthMarq market report states.
What challenges are you experiencing? Costs have started to creep up. In 2020, the perception was that because everything was slowing down, things were going to get cheaper but the opposite happened. Labor is going to be a major cost. Steel and wood prices are also going up. We’ve already seen material shortages as well, which is affecting schedules and will be somewhat of a concern if left unchecked. Sometimes we get calls from contractors reporting delays, falling behind on the production due to supply chain issues. Our work in hospitals, specifically, has been the most restrictive. The healthcare community has experienced greater slowdowns in terms of projects moving forward. Due to public health protocols, healthcare facilities virtually closed off their buildings for obvious reasons. They’re now starting to come out of that self-isolation. What is your outlook for LS3P? Our projection is a robust one, particularly in Raleigh. We’re fortunate to be here in the Southeast as some firms are struggling up North. Going forward, sustainability is always going to be at the forefront of what we do and it’s not as hard to achieve anymore. We’ve been part of the U.S. Green Building Council’s LEED program from our inception and we incorporate strategies for sustainability in all of our designs. www.capitalanalyticsassociates.com
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