Oct. 28, 2016 UBJ

OCTOBER 28, 2016 | VOL. 5 ISSUE 44

1SQUARE MILLION FEET YOU MUST GIVE ME

THE

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SU S I RE

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Big businesses need even bigger spaces.

Which Upstate properties can accommodate them?

10.28.2016

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TOP-OF-MIND AND IN THE MIX THIS WEEK

| THE RUNDOWN | 3

VOLUME 5, ISSUE 44 Featured this issue: Restaurants brace for new overtime rules...................................................................6 CU-ICAR opens $14M building............................................................................................12 Are you honoring your psychological contracts?...................................................29

A view from the top of a 207-foot crane above the 10-story AC Hotel by Marriott under construction in downtown Spartanburg.

UBJ’s Trevor Anderson gives his bird’s-eye view of Spartanburg’s past and future on page 5. Photo by Will Crooks

WORTH REPEATING “We’re competing with the Southeast. This is where everyone wants to be.”

VERBATIM

On S.C.’s employment rate

“Usually, there’s a good side “People want to be able live in a place where and a bad side to these reports. they have no use for a car, but also struggle There’s no way to put a negative to reach their Fitbit step goal every day.” spin on this.”

Page 19 Page 16

“I realized that the business was all me. If I got hit by a bus, it would be over with.”

Page 22

Frank Hefner, economics professor at the College of Charleston, quoted in The State newspaper, on last week’s announcement that the state’s unemployment rate had fallen under 5 percent for the first time since 2001.

UBJ

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10.28.2016

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10.28.2016

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TOP-OF-MIND AND IN THE MIX THIS WEEK

| UPFRONT | 5

A View from the Top There’s nothing like a 200-foot climb to get some perspective on downtown Spartanburg’s past and future TREVOR ANDERSON | STAFF

tanderson@communityjournals.com Let me get real for a second.

Last Friday, I put on a hardhat and gloves and climbed to the top of the 207-foot crane above the $20 million, 10-story AC Hotel by Marriott under construction in downtown Spartanburg.

Trust me, it doesn’t look that high from the ground, but feels twice that height when you’re up there.

My arms and legs are burning from the climb up a series of steel ladders when I reach the summit.

The wind is gusting at 40 mph, and the platform of the crane is turning like the arm of a weathervane.

I grip a semi-wobbly handrail and panic momentarily sets in. My life literally flashes before me.

I see the building where I worked for 10 years — my first real job after college. I see the outdoor patio at the top of Denny’s tower, where I proposed to my ex-wife. I see our first apartment and the historic neighborhood where I bought my first home.

I see my son’s school. I see the lamppost I backed into, the sidewalk outside Java Jive. I see the fountain I “fell” into that one night after leaving Delaney’s Irish Pub. But I take a deep breath. The blood returns to my knuckles. My subconscious stops screaming, “Get me off this thing!”

It’s a beautiful, clear day. I can see for miles in all directions. I remember why I came up here.

My eyes are drawn to several points in the city’s skyline: the smokestacks of the old Spartan and Beaumont Mills sites that are now home to the

Edward Via College of Osteopathic Medicine and corporate offices for Spartanburg Regional Healthcare System, respectively.

The historic Montgomery Building, which has looked over downtown for nearly a century, sits waiting for its $25 million renovation that promises to bring new residential, retail and restaurant opportunities to the city.

Behind it is the University of South Carolina Upstate’s business school and Chapman Cultural Center.

To the south, I see the old Schuyler building, now Church Street Lofts, which once resembled a relic of the Chernobyl disaster. It now sports 88 posh studio apartments, a rooftop fitness center and sun deck.

Main Street hums with pedestrians and automobiles. I think of all the stories I’ve written during the past few years about all of the new eateries and shops.

I see the future site of a new mixeduse development, a thriving brewery and the corporate headquarters for a handful of national and international companies ranging from software and financial services to development and restaurants.

According to the city of Spartanburg, downtown has netted more than $125 million in new investment and welcomed 70 new businesses since 2013. More than 19,000 people work within a 1.5-mile radius of Morgan Square.

The city just unveiled a public art project, “Seeing Spartanburg in a New Light,” funded by a $1 million grant from Bloomberg Philanthropies. And there’s more on the way.

The state’s first cooperatively owned grocery store, Hub City Co-op, opened earlier this year in downtown, and there’s $2.5 million in streetscaping

projects underway.

Dirt for the runway extension at the Spartanburg Downtown Memorial Airport is piled high and ready to be covered with asphalt.

I see the iconic towers of Wofford College’s Main Building and remember the NFL Carolina Panthers training camp held on campus this summer set new records for attendance and economic Will Crooks impact.

Will Crooks I look and below me I see a city full of people who love it and want to make it a better place.

I think about what the visitors of this new hotel will see when they look out at the same skyline next year.

There are four large properties near the hotel that hold so much potential.

Will hotel patrons see a ball field, new apartments, shops, restaurants or an event center in a few years?

What achievements lay ahead for Spartanburg? Will I be around to see them all?

My mind starts to wander, but then it’s time to leave the perch. Like a sailor who has spotted land, I climb down energized and exhilarated.

I look up one last time as the wind blows a stack of conical paper cups from the top floors of the hotel. They land near, but their sound is muffled by the low growl of machinery. I realize it’s time to get back to work.

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6 | WORKFORCE |

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10.28.2016

BAD TIMING

Restaurateurs prepare for the Labor Department’s new overtime rules RUDOLPH BELL | CONTRIBUTOR

rbell@communityjournals.com

Labor costs are headed up for Upstate restaurants and other businesses thanks to a new federal rule extending overtime protection to 4.2 million workers.

Currently, employers don’t have to pay time and a half to salaried, white-collar employees when they work more than 40 hours a week if those employees earn at least $23,660 a year.

Under the mandate from the U.S. Labor Department, however, white-collar employees making less than $47,476 a year will become eligible for overtime pay as of Dec. 1.

The pending change has employers across the country trying to decide whether to raise the salaries of affected employees to the new threshold, start paying them overtime or limit their hours to 40 a week. Some businesses are also wondering how they’re

going to absorb the impact.

Restaurateurs, in particular, say the new rule will hit their industry harder than others because it is labor-intensive with thin profit margins. A restaurant’s business ebbs and flows, they say, requiring workers to keep long hours at certain times and work less at other times.

Carl Sobocinski, owner of Table 301 restaurant group, said he estimates his labor costs will rise by $70,000 to $80,000 a year as a result of the new rule.

Sobocinski said he may have to close some restaurants earlier than he does now and cut back the catering manhours he donates to charitable causes such as the March of Dimes, the Red Cross and Meals on Wheels.

“The government and the regulatory boards don’t need to be involved in trying to run our businesses,” said Sobocinski, a former chairman of the South Carolina Restaurant and

WHAT NEXT? To comply with the new rule, Table 301’s Carl Sobocinski plans to raise salaries for 15 of his 400 employees to the new threshold and reclassify another 30 workers from salaried to hourly.

Lodging Association and emeritus board member of the National Restaurant Association.

Sobocinski said he does all he can to make sure employees don’t have to work more than 40 hours a week, but it’s next to impossible during big downtown festivals such as Fall for Greenville, Artisphere and Euphoria, as well as on Furman University’s graduation and Mother’s Day. “When it’s crunch time, and I’ve got customers, I need all hands on deck,” he said. “And people sign up for that.

They’re willing.”

To comply with the new rule, Sobocinski plans to raise salaries for 15 of his 400 employees to the new threshold and reclassify another 30 workers from salaried to hourly.

“I’d love to pay all of my people $70,000 a year, $80,000 a year, whatever,” he said. “You pay what the business brings in, what the market will bear.”

Employers most affected by the new rule will be those that employ a lot of middle managers who don’t get overtime now but work more than 40 hours a week and earn less than $47,476 a year, said Charles McDonald, a labor and employment lawyer in the Greenville office of the Ogletree Deakins firm.

Those include retailers, nonprofit organizations and local governments in addition to restaurants, he said.

“You’re talking about in one fell swoop having to double people’s pay potentially to keep them legally exempt,” McDonald said.

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PUNCHING THE

CLOCK

4.2 million

Number of workers who will now receive overtime protection as a result of the new rule

$47,476

The salary level at which employers do not have to pay white-collar workers overtime as of Dec. 1

$1.2 billion

The amount of additional money that will go into workers’ pockets each year as a result of the new rule.

$48,500

The new salary for assistant managers at Walmart

218,500

The estimated number of employees in South Carolina restaurants Sources: S.C. Restaurant and Lodging Association, U.S. Labor Department

The U.S. Labor Department contends that too many of today’s salaried workers are overworked because their employers have no incentive to limit their hours.

The department says the new rule will put an extra $1.2 billion a year into workers’ pockets.

In addition, the department said in explaining the change, many workers will put in fewer hours for the same pay, “giving them more time to spend with their families and in their personal pursuits.”

The new rule also calls for the salary threshold for overtime pay to be updated every three years beginning Jan. 1, 2020.

Maurice Collins, owner of McDonald’s restaurants in Easley, Pickens and Powdersville, said he figures the change will raise his labor costs by two-tenths to three-tenths of a percent.

“It’s not going to be horrible, but I hate any kind of government intervention in this,” said Collins, who reclassified six of his 250 employees from salaried to hourly in order to comply.

“It just makes it more complicated, more difficult to run.”

Collins said a previous mandate

from the federal government, the Affordable Care Act and its health insurance requirements, was far more costly for his company.

“Our insurance premiums for next year increased 11 percent over premiums for this year,” he said.

Bob Munnich, chief operating officer for two restaurant brands that do business in downtown Greenville, Larkin’s on the River and Grill Marks, said the new rule will add to labor costs but he couldn’t yet say exactly how much.

“I would like to see a six-month delay and some discussion in between of how it can be phased in versus a 100 percent increase,” Munnich said.

At least one big company has already announced its compliance.

Walmart said it raised the salaries of its assistant store managers to $48,500 a year heading into the busy holiday season. The previous starting pay was $45,000.

South Carolina Republicans are working to undo the Obama administration mandate.

In Washington, U.S. Rep. Trey Gowdy of Spartanburg co-sponsored a bill to delay the new rule for six months. It passed the House and awaits action in the Senate, said Gowdy spokesperson Amanda Gonzalez.

Gowdy was special guest at a fundraiser for a National Restaurant Association political action committee earlier this month at the Lazy Goat, one of Sobocinski’s restaurants.

In the U.S. Senate, Sen. Tim Scott of Charleston has introduced legislation that he says would nullify the new overtime rule.

The mandate “promises to have a host of unintended consequences for the very workers they are trying to help,” Scott said in a press release.

“Bureaucrats in Washington cannot create jobs, but they certainly can destroy them.”

In Columbia, South Carolina Attorney General Alan Wilson joined a coalition of 21 states challenging the new rule in court. Wilson said in a press release that it could force state and local governments to eliminate services and lay off workers.

“This overtime rule is bad for South Carolina businesses as it will put added pressure on business owners and take away employment opportunities for South Carolinians,” Wilson said.

“Forcing these regulations on states is a violation of the 10th amendment and the rule of law.”

INFORMATION YOU WANT TO KNOW

| WORKFORCE | 7

8 | HEALTH CARE |

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GHS doctor wins international prize for reducing premature births MELINDA YOUNG | CONTRIBUTOR

myoung@communityjournals.com An international prize committee

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has recognized a local doctor who spearheaded a state program that helps prevent premature births, saving South Carolina’s Medicaid program more than $7 million in medical costs.

Dr. Amy H. Crockett received the John P. McNulty Prize of $100,000 from the Aspen Institute for her success instituting the CenteringPregnancy model of group prenatal care across the state. The effort first began as a Liberty Fellowship project.

The project helps more than 3,000 women in the state’s Medicaid program, successfully reducing the number of babies born before 37 weeks gestation. It also has increased breastfeeding, lowered rates of cesarean deliveries and reduced gestational diabetes, said Crockett, an OB-GYN and maternal-fetal medicine physician who is the medical director of the Greenville Health System OB-GYN Center. Crockett also is the clinical lead for the South Carolina Birth Outcomes Initiative and a Liberty Fellow.

The McNulty Prize recognizes the best leadership projects among the 2,300 Aspen Global Leadership Network fellows, including Liberty Fellows, across 50 countries.

The CenteringPregnancy model involves having pregnant women meet monthly at their doctor’s office with trained health professionals and other pregnant women to learn about maintaining a healthy pregnancy.

“It changes the doctor-patient relationship, taking the hierarchy out of it,” Crockett said. “Pregnancy can be very isolating, even when it’s planned, so the groups give women a tremendous amount of support, and they enjoy the education and information they get.”

One of the project’s striking results was that it eliminated racial disparities in preterm births among the thousands of women enrolled in the program. In South Carolina, 14 percent of black pregnant women and 9.8 percent of white pregnant women have preterm births, meaning their babies were born before 37 weeks and likely needed support from a neonatal intensive care unit (NICU), Crockett said.

The program resulted in pregnant

women – both white and black – having an 8 percent preterm birth rate, she adds.

Researchers do not know exactly why the racial disparity completely disappeared, but they believe it suggests that preterm birth rates are impacted primarily by socioeconomic issues, which were addressed with the CenteringPregnancy model, Crockett said.

“We have a lot of research going on right now to understand why this group model is helping women,” she explained. “We see definite improvements in social support as women are building friendships through these groups, and we see reductions in stress.”

Each group session involves a CenteringPregnancy coordinator who engages patients in discussions about their pregnancies, their prenatal health and child preparation. The women often say they find answers to questions they didn’t know to ask, Crockett said.

“The challenge is convincing practices that this is something they need to do,” Crockett said. “It’s such a change in the way patients move through their offices, and it requires a certain volume of obstetric patients to get women into the monthly group.”

While the insurers – not the physicians – directly benefit financially from healthier babies and mothers, some still have been reluctant to share in the cost of the program.

A recent study, in which Crockett is listed as a co-author (as Amy Picklesimer), in the Maternal and Child Health Journal showed that CenteringPregnancy reduces the incidence of low-birthweight babies by 44 percent and results in a cost savings of $22,667 for every premature birth that is prevented.

The project, originally for three years, was extended for another three years, and it was expanded from 10 doctor’s practices using the CenteringPregnancy model to 16 sites.

“We will use the prize money to support some of the research we are doing in order to understand how Centering biologically works to decrease the rates of preterm birth,” Crockett said.

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10.28.2016

2016 Workforce Development Salute honors three major supporters DAVID DYKES | STAFF

ddykes@communityjournals.com The Greenville Tech Foundation was scheduled Thursday to host the 2016 Workforce Development Salute, an event emphasizing the importance of developing a skilled labor pool for Greenville’s growing business economy.

The salute at the TD Convention Center honored local leaders for their contributions toward that effort. The 2016 honorees were John I. Smith Charities, former Simpsonville mayor Ralph Hendricks and T&S Brass and Bronze Works Inc. “This year’s honorees have made a significant impact on the development of a skilled workforce in the Greenville community,” said Bob Howard, president of the Greenville Tech Foundation. “Without education, we stop growing and will wither on the vine. Not only will this event recognize the outstanding efforts from commu-

nity members, but it will also help fund scholarships and other critical needs of Greenville Technical College.”

John I. Smith Charities has supported Greenville Tech for almost 20 years and most recently helped fund the creation of the Center for Manufacturing Innovation.

Hendricks has given generously over the past two decades to support scholarships for students Ralph Hendricks from the Golden Strip.

T&S Brass and Bronze Works supports the college through a variety Tech Foundation provides financial of efforts, including donated construcsupport to the college and students tion materials and awarding a scholbeyond what can be obtained from arship to one student from every state and local funding sources. A public high school in Greenville board of directors comprised of County each year.

Greenville County leaders in busiGreenville Tech Foundation Inc., ness, industry and other professions established in 1973, is a nonprofit governs the foundation. corporation separate from Greenville The foundation hosts the event Technical College but operating for annually to celebrate the efforts of the benefit of the college. Greenville the college and the contributions

Travis Olmert, Jeff Smith and Elizabeth Clayton of John I. Smith Charities

Erik Theisen, Zachary Theisen, Eva-Marie Fox and Claude Theisen of T&S Brass and Bronze Works.

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10.28.2016

$14M building opens at CU-ICAR to accommodate automotive industry growth ANDREW MOORE | STAFF

amoore@communityjournals.com Clemson University officials

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The One Research Drive Building, the sixth and final building in Technology Neighborhood One at CU-ICAR, has 30,000 square feet of classroom and lab space.

themselves. And they need somewhere that is at the heart of the auto cluster.

One Research Drive is that,” Cartwright said. “One Research Drive will also help Clemson University accommodate the growing number of students interested in the auto industry.”

The One Research Drive building features 30,000 square feet of classroom and lab space that is going to accommodate Clemson’s department of automotive engineering, which includes Deep Orange, a popular program in which students build prototype cars with industry technology partners.

About 95 percent of graduates go on to work in the auto industry or academia, according to Clemson University. Two hundred students, faculty members and employees from the department of automotive engineering work in Technology Neighborhood One, according to Cartwright.

It started with eight graduate students in 2007.

PROJECT PARTNERS Project Name: CU-ICAR Research One Location: One Research Drive, Greenville, SC 29607 Owner: Clemson University Architectural Firm: LS3P ASSOCIATES LTD. Architects: Scott May, AIA, LEED AP BD+C; Chuck Hultstrand, AIA, LEED Green Associate; Chris Stone, AIA, LEED Green Associate

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held a ribbon-cutting ceremony on Tuesday to celebrate the opening of the One Research Drive building at the Clemson University International Center for Automotive Research (CU-ICAR) in Greenville.

“We need world-class facilities that give our students a place to learn, our researchers a place to develop cutting-edge breakthroughs and our industry partners an innovative environment in which to flourish. One Research Drive will do all three,” Clemson University President James Clements said in a statement.

The 84,000-square-foot building, which is adjacent to the BMW Information Technology Resource Center, is the sixth and final building in the section of campus known as Technology Neighborhood One. The building’s ground floor features high bay lab space, and the three

upper floors have subdividable office suites ranging in size from 1,000 to 20,000 square feet. The new building could attract and accommodate the increasing number of research-and-development projects coming to the Upstate.

“We are seeing a positive trend of companies in the less-developed segments of the automotive industry ecosystem coming to our region, specifically more engineering services, testing and R&D than ever before,” said John Ballato, vice president for economic development at Clemson University.

There are more than 700 automotive industry workers at Technology Neighborhood One, according to Fred Cartwright, executive director of CUICAR. That includes employees from companies such as Michelin and Sage Automotive.

“This new building allows us to accommodate growth in the auto industry. Companies that locate to Greenville need a place to establish

Clements called the building an “engine for economic growth.”

Officials expect the $14 million building to generate 220 jobs and $2.6 million in private investments. The U.S. Commerce Department’s Economic Development Administration (EDA) provided roughly $2 million for the building. Clemson University used private financing for the remaining costs, according to Cartwright.

To obtain LEED Silver certification, Clemson installed active sun controls, vegetative roofing and high-performance envelope systems at the building. The research center should also benefit from sustainability credits due to its high-density development, pavements made from light-reflective materials and water conservation strategies.

Cartwright said the effort would continue the center’s sustainability efforts while cutting operating costs and producing energy savings. “Sustainability is at the heart of everything we do,” Cartwright said. “Our passion for it is evident in our labs and classrooms. We’re really providing a healthy place to work and learn.”

CU-ICAR is also a member of the Environmental Protection Agency’s Green Power Partners program, which encourages both organizations and businesses to use clean energies to reduce the environmental impacts of conventional electricity use.

For more information, visit cuicar.com

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AUTOMOTIVE

EuWe Group boosts investment in Anderson County A BMW supplier will “double down” in its investment in Anderson County.

EuWe Eugen Wexler US Plastics Inc., the American subsidiary of Germany-based EuWe Group, announced Tuesday it will invest an additional $5 million to expand its facility at Alliance Industrial Park and create 29 jobs during the next five years.

The company announced an initial investment of $11.1 million in 2015 to establish its first U.S. facility and create 49 new jobs.

“EuWe still is in the preparation and ramp-up phase of its new facility in the United States, supporting our main customer, BMW,” said Markus Gosse, CEO of EuWe Eugen Wexler US Plastics, in a statement.

“We were extremely excited having already been awarded additional business prior to our actual launch of production.

This enabled us to increase the size and set-up of our operations and to create even more jobs right here in Anderson County. Being a company that is still managed by the founding family and always plans for the long run, we are confident to make this endeavor a success.”

The company said hiring for the facility is underway. Job seekers are encouraged to visit the company’s jobs page online.

EuWe Group was founded in 1968 as a supplier of metal parts.

In 1970, the company expanded its product lines to include plastics. The company built its first international facility in Mexico in 1993.

EuWe Group said it has more than 1,700 employees in three countries and boasts a client list that includes 10 of the world’s largest automobile manufacturers.

The Anderson plant will focus solely on the production of automotive plastic interior parts, the company said.

“It’s always exciting when a company decides to double down on its commitment to our state and to our people,” said Gov. Nikki Haley in a statement.

“We were thrilled last year when the EuWe Group announced that it would be locating its first U.S. facility here, and we’re even more excited today because this $5 million investment shows that companies of all kinds can find success and thrive in South Carolina.”

The S.C. Coordinating Council for Economic Development has approved a $100,000 Set Aside grant to Anderson County to assist with the costs of real property improvements.

“In 2015, Anderson County welcomed EuWe Eugen Wexler to our community,” said Anderson County Council Chairman Tommy Dunn in a statement. “Today, EuWe announces an additional $5 million expansion to their project and the creation of 29 more jobs, strengthening their intent to make Anderson County their home for many years to come.”

For more information, visit euwe.com. – Trevor Anderson

RECOGNITION

Shaw recognized with Ethics in Action award Clemson University’s Rutland Institute for Ethics Advisory Board has selected Minor Shaw to receive the 2016 James F. Barker Ethics in Action Award. Shaw will be recognized at a dinner in her honor Feb. 9 at the Poinsett Club in Greenville. The dinner will be hosted by the Rutland Institute for Ethics and presented by The Duke Endowment.

Named for Robert J. Rutland, the Rutland Institute for Ethics at Clemson University was created to encourage discussion on campus, in businesses and in the community about how ethical decision-making can be the basis of both personal and professional success.

In 1979, Shaw began her lifelong service to Greenville with significant involvement in organizations that included the South Carolina Children’s Theatre, Junior League of Greenville, the United Way of Greenville, Ronald McDonald House and Governor’s School for the Arts and Humanities.

Shaw went on to help launch the Roper Mountain Science Center, and has chaired the United Way of Greenville, United Way of South Carolina, Community Foundation of Greenville and the Urban League of the Upstate. Shaw also has been inducted to the South Carolina Business Hall of Fame.

ics in action, and I am humbled to receive this award and to be in their company.”

Shaw is the third recipient of the Ethics in Action Award. The first recipient, in 2014, was the award’s namesake, former Clemson University President James F. Barker. In 2015, Scott Dishman received the award.

“Through the years, I have always seen her as a role model of a woman of integrity whose passion and focus for making our community exceptional have never wavered,” said Caroline Stewart, president of Louis P. Batson Company. “We are very fortunate to have an advocate like Minor Shaw in the Upstate.” – David Dykes

MANUFACTURING

Holroyd Precision Rotors opens first U.S. plant in Spartanburg Spartanburg County added another company to its roll of international businesses last Friday.

British manufacturer Holroyd Precision Rotors officially opened its new 35,000-square-foot facility at 130 Corporate Drive within the Corporate Center business park.

The company is a subsidiary of Precision Technologies Group (PTG), which was acquired by the China-based industrial group Chongqing Machinery and Electrical Co. (CQME) in 2010.

PTG’s CEO Tony Bannan said the Spartanburg facility is the company’s first manufacturing operation in the U.S. It represents a $15 million investment and is expected to initially create up to 25 jobs, he said.

“It has been an ambition of ours to [build a manufacturing plant in the U.S.],” Bannan said. “It’s very satisfying. The key for us is to be responsive to our customer base. We’re hoping that by being local and hiring a talented workforce we will

|

10.28.2016

be able to achieve success … We’re very pleased with the support we’ve received from state and local leaders.”

Holroyd, named after its founder, John Holroyd, was established in 1861 in Manchester, England, as a machine tool and textile machinery business, according to the company’s website. The company’s core business is in production and sales of machine tools and components for niche markets. It also operates manufacturing plants in the United Kingdom and China.

Colin Carr, managing director of Holroyd Precision Rotors, said growth in demand for the company’s components in the U.S. helped drive the company’s decision to bring a plant in Spartanburg. He said the company considered several sites for the facility and nearly landed in Richmond, Va. “They are great to work with and I’m glad to have them here,” said Pete Weisman, owner and architect of Corporate Center. “This is the essence of what I wanted here when I envisioned this park … This park fills a huge gap in the market, catering to people who don’t need huge manufacturing plants.”

Carr said the company has already hired nine employees for the Spartanburg facility. He said the plant will specialize in the production of high-precision rotors that are used in a variety of applications, including refrigeration, industrial air compressors and others.

The facility has several large grinding and milling machines, including a few of its own brand. Associates were busy at work Thursday feeding round billets, or bars of steel, into machines that are accurate down to about one-tenth the diameter of a human hair.

Carr said that as the company’s business in the U.S. and beyond continues to grow, the Spartanburg plant could also expand. He said the company is currently hiring for the new positions.

For more information, visit holroyd.com.

– Trevor Anderson

She is chair of the Daniel-Mickel Foundation, The Duke Endowment, Hollingsworth Funds and Greenville-Spartanburg Airport Commission. She graduated from the University of North Carolina – Chapel Hill with a degree in history. She is married to Dr. Harold Ellis Shaw and is the mother to three and grandmother to nine. She is a native of Elberton, Ga., and grew up in Greenville.

“I am tremendously honored to be chosen to receive the 2016 James F. Barker Ethics in Action Award,” Shaw said. “The previous recipients of this award, Jim Barker and Scott Dishman, exemplify eth-

Joe Chittavong loads a steel billet into a milling machine at Holroyd’s facility at Corporate Center in Spartanburg.

10.28.2016

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INFORMATION YOU WANT TO KNOW

| RESTAURANTS | 15

een Proposed location

e.

Av

a four-lane highway.”

The application said there are two restaurants with drive-thrus nearby: the Como Pete’s and the McDonald’s.

“Clearly, a drive-thru restaurant — a commercial use — is appropriate here,” the application said. The application said the drive-thru would have enough stacking room for 25 cars and enough space to prevent traffic from flowing out of the property.

On its petition, residents said, “This

ee

gu

sta

est

Au

St.

Co n

Chick-fil-A drive-thru restaurant off the agenda for a special Greenville Board of Zoning Appeals meeting held Thursday.

According to an updated meeting agenda, CPC Greenville LLC withdrew its application for a special exception to the city’s zoning laws for the proposed restaurant on Augusta Street.

Lindsay Carrington, a Greenville attorney for the applicant, confirmed the firm withdrew the application but he wouldn’t comment on plans for the site.

City planners recommended denial of the application, saying the intended use of the property is expected to result in adverse impacts to traffic on Augusta Street. In their recommendations, city planners said the proposal was not consistent with the intent of a mixed-use neighborhood, future land use designation or the pertinent goals of the comprehensive plans.

CPC Greenville LLC had proposed

e rd

Developers pulled a controversial

redeveloping three parcels of land fronting Augusta Street, and located between Aberdeen Drive and Conestee Avenue, as a drive-thru restaurant.

The plan had drawn the ire of nearby residents, who say the restaurant would make the traffic nightmare on Augusta worse, create issues with pedestrian and cyclist safety and increase the number of drivers who use residential streets as a cut-through.

Residents collected nearly 700 signatures on a petition asking Greenville’s Board of Zoning Appeals to reject the proposal.

They used a passage of S. Truett Cathy’s “Eat More Chikin’, Inspire More People: Doing Business the Chick-fil-A Way” as one of their arguments. Cathey wrote that his restaurant built its first drive-thru-only in Greenville in 1993. “Near the parking lot of McAlister Square Mall we built a small drive-thru with two windows, designed to do about $750,000 worth of business per year.

Well, the first year we did $1.4 million. Cars were lined up across the mall parking lot and backed up down

Ab

clandrum@communityjournals.com

Capers St.

CINDY LANDRUM | STAFF

Dr.

Controversial Chick-fil-A drive-thru pulled from BZA agenda

is an inappropriate and unwanted development by an out-of-state developer who can find a better location for its heavy-traffic business proposal.”

The proposal called for a freestanding, 4,500-square-foot restaurant with a drive-thru window at Augusta and Aberdeen, with patio space for outdoor dining. All vehicular access would be from Conestee and Aberdeen. No access was proposed on Augusta Street.

– Staff Writer David Dykes contributed.

Wis e. Tenacious. Financially pr udent.

And that’s just our client s.

smithmo orelaw. c om # s m l c l i e n t s c o m efi r s t

1SQUARE MILLION FEET 16 | QUARTERLY CRE ISSUE |

From Adidas to Amazon, distribution centers in the Upstate are busting the seven-figure mark – and the trend is set to continue

TREVOR ANDERSON | STAFF

tanderson@communityjournals.com The Upstate’s inventory of major distribution centers has continued to expand during the past decade.

Companies including Adidas, Rite Aid, TechTronic Industries, Dollar Tree, Dollar General and Amazon have nearly reached or well exceeded the 1 million-square-foot mark for facilities that help them ship goods to customers faster and more efficiently.

Those projects have produced hundreds of millions of dollars in new investment and thousands of jobs for residents across the region.

Local experts said they expect to see the trend continue, driven by population growth, the online shopping boom and companies consolidating existing distribution centers into one massive facility.

With a network of highways and major interstates, rail corridors and an inland port connected to the Port of Charleston, commercial real estate owners and investors said the Upstate is well-positioned to capitalize on that trend.

But another key ingredient in landing those big-box distribution centers will be the availability of sites that can support them.

“Within two days you can reach 70 percent of the nation’s population,” said Jeffrey Horton, Spartanburg County Council chairman and board member of the Economic Futures Group. “We’ve worked so hard with our developers to get sites ready so we’re ready to roll when the companies are here … We’re competing with the Southeast. This is where everyone wants to be.”

The region’s portfolio of large commercial tracts is broad and diverse.

Upstate leaders said the pipeline of potential projects is getting healthier and the mix includes domestic and foreign companies that compete on the global stage.

A good example is the $270 million, five-building distribution complex Greenville-based Michelin North America plans to build on 460 acres in

western Spartanburg County. The 3.3 million-square-foot center, which is expected to be fully operational by 2019, will create at least 350 jobs.

Although the project is a win for the region, developers said there aren’t too many companies out there seeking to build centers of that magnitude.

And while there are many properties on the market, developers said only a few have all of the elements site selectors and companies are looking for, including access to interstates, infrastructure, a skilled workforce and utilities, as well as a willing seller.

UBJ has identified six properties to keep an eye on during the next few years that have the potential to house build-to-suit distribution centers that can occupy 1 million square feet or more.

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COVER

10.28.2016

THE SIX PROPERTIES AUGUSTA GROVE

Augusta Road and Interstate 185 Greenville County ACRES: 1,100 ACRES STILL AVAILABLE: 709

FLATWOOD INDUSTRIAL PARK Flatwood Industrial Drive Spartanburg County

ACRES: 1,400 ACRES STILL AVAILABLE: 1,250

MILLIKEN TRACT

Fort Prince Boulevard Spartanburg County ACRES: 800

SUNNY SLOPE CORPORATE PARK Webber Road Cherokee County ACRES: 355

TYGER RIVER INDUSTRIAL PARK-NORTH Highway 290 Duncan (Spartanburg County) ACRES: 882

UPSTATE CORPORATE PARK

Mount Olive and Battleground roads Cowpens (Spartanburg and Cherokee Counties) ACRES: 500 ACRES STILL AVAILABLE: 200

Illus t

r at io

n by

Mik

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ay

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COVER

| QUARTERLY CRE ISSUE | 17

Augusta Grove Augusta Rd Perimeter Rd

Cytec Engineering Materials Matrix Pkwy

Super Inn GE Aviation

Augusta Road and I-185, Greenville County In September, private developers acquired The Matrix, a 1,100-acre industrial park off Augusta Road in Greenville County.

The park’s new ownership entity, Augusta Grove-Greenville LLC, is a partnership led by TPA Group of Atlanta and Appian Investments, a Greenville-based investment group. Greenville County Business Park Public Facilities Corp. is a minority partner.

The park, which was created more than 15 years ago, has been renamed Augusta Grove. It has already attracted a mix of manufacturing and logistics owners, including GE Aviation, KI Logistics, Roy Metals, The Blood Connection, Sun City Produce, JKEKT, Magna Industries

HOW BIG IS

1 MILLION SQUARE FEET?

and others.

The park still has more than 700 acres available for development.

Grice Hunt, a broker with NAI Earle Furman, the firm that is managing, marketing, developing and rebranding the park, said there is room at the park for at least one 1 million-square-foot distribution center.

“That’s part of the reason we’ve done the Augusta Grove deal,” Hunt said. “We think this is a park that has been underutilized and underdeveloped. This is a market where we think there is going to be sustained growth, and we want to be able to accommodate the big bombers as well as the smaller manufacturing companies.”

• One lap around a 1 millionsquare-foot box is 4,000 feet, which is 40 feet longer than three-quarters of a mile.

• The average football field, including end zones, is about 64,800 feet. That means 15.4 football fields could fit into a 1 million-square-foot facility.

Flatwood Rd Chesnee Hwy

Old Landfill Rd

Hwy 29

Walmart

Rite Aid Distribution Center

Lowe's Fort Prince Blvd / Hwy 129

Flatwood Industril Dr

Ingles

Flatwood Industrial Park

Milliken Tract

Flatwood Industrial Drive, Spartanburg County

Fort Prince Boulevard, Spartanburg County

In 2015, Spartanburg-based Johnson Development opened up 1,400 acres of farmland north of Business I-85 between Parris Bridge Road and Highway 221 for development.

The site, named Flatwood Industrial Park, has the potential to support about 9 million square feet of speculative and build-to-suit facilities and thousands of jobs.

In May, Pennsylvania-based drugstore chain Rite Aid hosted the grand opening of its $90 million, 900,000-square-foot Southeast Customer Support Center at the business park.

Johnson Development said the park still has 1,250 acres remaining for development, with the capacity to support up to 9 million square feet of industrial space.

Rob Rain, president of Johnson Development’s industrial division, said Flatwood has four sites remaining that can accommodate at least a 1 million-square-foot facility and a fifth site that can house a 750,000-square-foot center.

A new 800-acre business park will soon be developed on property once owned by the late textile magnate Roger Milliken.

The site is comprised of three tracts off Fort Prince Boulevard less than 1 mile from the intersection of Highway 29 and I-85.

A conceptual master plan shared by John Montgomery, principal of Montgomery Development Group, showed the site has the capacity to house three buildings larger than 1 million square feet, as well as six other facilities between 225,000 and 300,000 square feet.

Hillcrest Shopping Center

Webber Rd.

Sunny Slope Corporate Park Webber Road, Cherokee County A 355-acre site off I-85 near Cowpens that was once part of the Sunny Slope Farms peach empire is ready to yield new jobs and investment.

According to a conceptual site layout provided by Montgomery and Colliers International, the property has the potential to house at least a 1.2 millionsquare-foot distribution center and four other industrial facilities ranging from 200,000 to 400,000 square feet.

The site has access to the interstate via Webber and Macedonia Roads. It is in close proximity to Upstate Corporate Park off Highway 110, which is home to a 1.5 million-square-foot distribution center operated by the Virginia-based discount variety store chain Dollar Tree.

1 MILLION continued on PAGE 18

18 | QUARTERLY CRE ISSUE |

UBJ

COVER

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1 MILLION continued from PAGE 17

Tyger River Industrial Park-North Highway 290, Duncan (Spartanburg County)

It would be difficult to find an area in any part of the country more rife with development than the Highway 290 corridor in Spartanburg County.

After a widening of the highway several years ago, the introduction in 2014 of Greenville-based Pacolet Milliken Enterprises Inc.’s massive Tyger River Industrial Park (TRIP) portfolio has ignited investments from several manufacturers, including Toray, Kobelco, Ritrama and Sterling CPI. Earlier this year, Pacolet Milliken, a private investment firm founded in 2007 by shareholders of Spartanburg-based Milliken & Co., opened up the northern tract of the 2,250-acre park for development.

The 882-acre plot of undeveloped land has access to a CSX rail line, highways 221 and 290 and interstates 85 and 26.

As with the rest of the TRIP property, Pacolet Milliken will invest in infrastructure at the site to make it shovel-ready for new projects. The company will also bring sewer, water, power and new roads to TRIP North.

The company’s master plan for the property shows it has the potential to house 13 facilities with a combined footprint of 7 million square feet.

Those facilities include two huge distribution centers, 1.5 million square feet and more than 1.4 million square feet.

“These facilities that are big bombers have a pretty specific orientation,” said Garrett Scott, a broker with Colliers International, who is helping to market the site. “There are some critical factors being considered when one of those is being laid out. It’s not about laying a 1 million-square-foot square on a site. To properly identify sites in this vein, there are a lot of

Greenville’s Audiology Team

Monroe Rd

Anderson Mill Rd

Moore Duncan Hwy / Hwy 290

different hurdles that need to be cleared.”

Scott said he believes that because a private investment company and not a developer owns TRIP, it could be more attractive to companies and developers who might also be considering sites in other states.

Mt Olive Rd

Swofford Dr

Webber Rd

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Mount Olive and Battleground Roads, Cowpens Upstate Corporate Park straddles the Spartanburg and Cherokee County line.

While its most recent claim to fame is Dollar Tree, the 500-acre park is home to a 90,000-square-foot facility for plastic enclosure manufacturer Bericap and a 60,000-square-foot spec building constructed by Cherokee County.

The property off Mount Olive Road in Cowpens was also once a part of the Sunny Slope Farms operation.

John Moore, a representative for the Moore family, who owns the park, said there is still plenty of property up for grabs, including a 70-acre parcel that could suit another distribution center at or larger than 1 million square feet.

The site is near I-85. Moore said once the widening of the interstate is complete and access to the park is improved, he believes it won’t be long before the park lands another major project.

“I think it’s just a matter of time,” Moore said. “Working with Holland Belue [Cherokee assistant county administrator] and other leaders has been wonderful. They are very professional. We have a county and state government that’s willing to work with us and a company.”

Moore said he hopes to land companies that will be good corporate citizens in hopes of having the maximum positive impact on the community.

“We want to sell it to people we think will be good neighbors and good stewards in the community,” he said. “If it isn’t the right fit, we’re not going to sell it to them.”

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GUEST COLUMN

| QUARTERLY CRE ISSUE | 19

Pedestrian-centered design: the key to unlocking the value of dirt

By BOBBY BARRETO President and CEO, Asterisk Development

The total cost of a real estate development project can, in its most simple form, be boiled down to three inputs: how much the land costs, how much the outside of the building costs and how much the inside of the building costs.

Cost of land + Cost of outside + Cost of inside = Total cost The logical way developers remain competitive, then, is by unlocking the value in one (or more) of those inputs.

In the Upstate, there is currently little room to save money by making the inside or outside of the building more cost-efficient and still maintain longterm value for the developer – the market just demands beautiful buildings inside and out. So, then, it should surprise no one that the best developers in the Upstate are also the best at unlocking the value of dirt – which, coincidentally, is often the most elusive undertaking. You know how the saying goes, though: “If it were easy, everyone would be doing it.”

There are plenty of ways that developers cultivate value in their land holdings, but I’d like to highlight a specific design trend that I’ve observed being successfully implemented in countless cities, including those blossoming in the Upstate. Allow me to bring forward the concept of pedestrian-centered design.

To define pedestrian-centered design is like explaining what the color red looks like – the term is the definition, and vice versa. However, in the spirit of adding value, I’ll attempt to loosely define pedestriancentered design as an urban design

approach that focuses on the way pedestrians use a building or space.

This approach often focuses on walkability and transitions between the three main uses of an urban space – living, working and playing.

Up until recent years, developments would usually include one, maybe two, of the three uses of an urban space. Many developers were operating under the age-old assumption that “if you build it, they will come.” By understanding the dynamic ways people are now using their cities, though, developers have been able to respond with truly mixed-use spaces.

Now, developers are hearing, “They’re here. Build what they want,” and what “they” want is simple – a place for everything. People want to be able to live in a place where they have no use for a car, but also struggle to reach their Fitbit step goal every day. Developing just an apartment complex, or just an office building, won’t cut it.

The hardest obstacle that developers have to overcome in developing modern, tri-use developments isn’t in finding out a way to fit three fundamentally different spaces in one building – it’s mastering the transition between the three. If done incorrectly, a building can feel overcrowded and cluttered. The only way around this, seemingly, is to take away some of the space to make room for pedestrian zones within the development (e.g., green space or promenades). This is the toughest pill for some developers to swallow. We live in a universe where matter can neither be created nor destroyed, which means that

People want to be able to live in a place where they have no use for a car, but also struggle to reach their Fitbit step goal every day. Developing just an apartment complex, or just an office building, won’t cut it.

rectly recovered through rent or sale. However, sacrificing leasable square footage is often rewarded with a higher value for the square footage that’s left over or, in some cases (think ONE City Plaza in downtown Greenville and the Epicentre in uptown Charlotte), more opportunity for retail square footage. I had the opportunity to hear an amazing quote from a speaker at the annual Urban Land Institute Capital Markets Conference last month that went something along the lines of, “If you make the sidewalk beautiful, no one will bother to look up.” My, how true those words are.

One City Plaza

pedestrian areas have to go somewhere – and that somewhere is in a place where leasable square footage could have gone.

It’s the opposite of conventional wisdom. Pedestrian-centered design often costs money that won’t be di-

20 | QUARTERLY CRE ISSUE |

UBJ

MARKET REPORTS

|

10.28.2016

CRE quarterly market reports Analysis derived from third quarter 2016 market reports supplied by Coldwell Banker Commerical Caine, CBRE, Colliers, NAI Earle Furman and Cushman & Wakefield | Thalhimer

Industrial

Office

SUMMARY:

Retail

SUMMARY:

More than 3.4 million square feet of industrial space was delivered in Q3 2016, reports CBRE. It was the “largest amount of square feet delivered in a single quarter since the completion of the original BMW facility 20 years ago.”

NAI Earle Furman reports a net absorption of 2,036,879 square feet with an asking average rental rate increase of 0.8 percent to $3.67 NNN per square foot. Two large distribution centers, Techtronic Industries and Dollar Tree, along with speculative industrial projects were delivered this quarter.

OUTLOOK: Colliers says that speculative construction is not slowing down, but developers are mitigating risk-building flexibility into their projects by waiting for tenant requirements before completing buildout. Strong leasing and supply constraints will feed rental growth in 2017, according to Cushman & Wakefield | Thalhimer.

OVERALL NET ABSORPTION/ASKING RENT 4-QTR TRAILING AVERAGE

The Upstate office market continues to remain healthy. NAI Earle Furman reports a 0.6 decrease in vacancy from 8 percent to 7.4 percent for the quarter. Downtown office space in both Greenville and Spartanburg continues to be in high demand. In the suburban markets, there is leasing activity but still no new construction, says Cushman & Wakefield | Thalhimer.

Investors looking for steady and secure cash flow continue to be interested in the Upstate as primary markets become saturated and competitive, reports Colliers. Three buildings totaling 23,238 square feet were delivered in the Greenville/Spartanburg market during the third quarter, according to Coldwell Banker Commercial Caine.

OUTLOOK: Continued increasing occupancy and rental rates should eventually drive development to suburban markets. While downtown Greenville is expected to remain hot, expect to see an increased focus on downtown Spartanburg as interest begins to pick up.

ASKING RATE GROWTH

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SUMMARY: The retail market has changed from a product-driven market to an entertainment-driven market, says NAI Earle Furman. Consumers are looking for entertainment, food and services when they go out instead of products.

The Pelham Road retail corridor is taking off, according to the Colliers report. “The area is surrounded by popular residential neighborhoods with immediate access to many of the region’s major employers.” It is estimated that 80,300 people live within a 10-minute drive of the densest retail area of Pelham Road. Redevelopment of the Earth Fare shopping center, which added an additional 44,000 square feet, and the new Shoppes at Pelham, which will be anchored by a 49,000-square-foot Lowes Foods and include 17,000 square feet of retail, are fueling the growth.

Vacancy in Greenville is down to 4.95 percent, and rental rates are creeping up, reports Cushman & Wakefield | Thalhimer. Grocery stores continue to fuel growth in the retail sector with the addition of Lowes, Aldi, Lidl and several new Walmart Neighborhood Markets.

OUTLOOK: Spartanburg and Greenville’s downtown areas will continue to see growth with new restaurant and retail offerings. Grocery stores will continue to be the impetus for retail centers. Chains such as Sprouts and Wegmans have announced plans to enter the Carolinas market.

UPSTATE GROSS RETAIL SALES JANUARY - JUNE 2016

10.28.2016

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upstatebusinessjournal.com

INFORMATION YOU WANT TO KNOW

| QUARTERLY CRE ISSUE | 21

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22 | QUARTERLY CRE ISSUE |

UBJ

MILESTONE

|

10.28.2016

J. Earle Furman Jr. atop NAI Earle Furman’s Greenville headquarters

'HAVE FUN AND MAKE MONEY'

Photo by Jack Lukow

NAI Earle Furman celebrates three decades of building Greenville LAURA HAIGHT | CONTRIBUTOR A quick scan of articles on the attributes of highly successful leaders finds qualities like “grace under pressure,” “committed communicator” and “unwavering supporter of staff.” If entrepreneurism intrigues you, you can read articles like these, or you can sit down for a chat with J. Earle Furman Jr. Collaboration, mentoring and shared success may be buzzwords today, but they were not part of the lexicon of the ’80s and ’90s when Furman, the founder and chairman of NAI Earle Furman, launched himself into entrepreneurism.

Possessing an effortless charm, soft-spoken demeanor and a penchant for storytelling, Furman tells of his decision to strike out on his own after 15 years with The Furman Co., the firm started by his great-grandfather. It was 1986, Furman was 39 years old and he had no grand plan other than an inten-

tion to start a “simple business, in that there was not a lot of clutter and I did what I wanted to.”

“Looking back on it, I must have been a little naïve,” he admits.

“Simple” included small, and he began in a “9-by-9 windowless room where I had to move a chair to open the door.”

“I never intended to grow,” he recalls. “I was going to be a cottage industry.” But success – and growth – came anyway. “I kept growing and growing, almost without a plan,” he says.

The unplanned growth included a number of people calling who wanted to join the firm. Ford Borders, a company stockholder and broker, notes that Furman had a “strong family name and a strong character. People liked and respected him. That’s why he was getting these calls – then and now.”

A foundation of collaboration

Furman as a young businessman

By the mid-’90s, the firm had moved several times to accommodate a growing number of brokers and staff, and Furman had begun to think about sustainability. “I realized that the business was all

Furman, a descendent of Fur man University’s founder, unveils a historic al marker for the school’s original downtown campus

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me. If I got hit by a bus, it would be over with,” he recalls. The foundation of his company began to take shape at a convention in San Francisco in 1996, and culminated later that year when Furman and three former colleagues, P. Randall Bentley, Ford Borders and William Burgess, agreed to become partners and formed Earle Furman and Associates.

“The capacity we joined together to form was formidable at that time,” Furman says. “It was filled with very capable people.”

That awareness is a central ingredient in Furman’s recipe for continuing success: “Surround yourself with people who are likely better than you are.”

The next four years of the new partnership attracted the interest of a major player in commercial real estate, NAI Global. Affiliating with NAI Global in 2000 globalized the firm. “It gave us a platform where we could seem to be seamless with other providers throughout the world,” Furman says. He adopted a wait-andsee attitude in the beginning, but today it is clear that NAI opened doors and markets, and offered resources that have been important to the firm’s growth.

With 180 members and 375 offices in every major U.S. market and across every continent of the world, NAI provided confidence for brokers and clients that “they have connections waiting for them wherever they might operate,” Furman notes. “That sort of collaboration absolutely works.”

Training the next generation A second foundational idea was the firm’s approach to the systemic business problem of putting the right people in the right places doing the

The NAI Earle Furman team cuts the ribbon for its Anderson office.

| QUARTERLY CRE ISSUE | 23

NAI EARLE FURMAN TIMELINE 1986 – Earle Furman Jr. leaves The Furman Co. and opens his new commercial real estate business in a “9-by-9 windowless room.”

1996 – Furman evolves into a

right things.

CEO Jon Good is a beneficiary of the tradition-busting idea of mentoring, which Furman describes as the “mentor milestone.” The four founders each took on the training of a junior broker. Eventually, three of those juniors became partners and, in turn, embarked on their own mentoring relationship. And it continues.

“Training the next generation was a real big growth driver and stabilizer for our company,” says Good, who counts Furman as his mentor and credits him with being the most significant influence in his career.

Not a traditional real estate model While expanding partnerships and mentoring sounds pretty traditional for many businesses, it is not in real estate brokerages. Borders, one of the four founding partners who remains at Furman’s side today, calls it “a model like no other around here or at most brokerage companies in the U.S.” The move to add partners and to mentor young brokers to success as potential partners brought

Photo by Jack Lukow

NAI Earle Furman CEO Jonathan Good

MILESTONE

stability, cooperation and opportunity. The firm currently has 17 partners and 80 brokers and staff.

Traditionally in the industry, offices are “run by a player-coach – somebody who is doing deals and trying to grow the business at the same time,” notes Chief Operating Officer Jason Richards. “Their growth is stifled.” Richards adds that the “player-coach” does not get to do what they love, “which is making deals.”

Good describes the firm as an open and welcoming place for ideas and opinions: “Because we are set up this way, we can take the best part of everybody’s brain and it goes into the solution at the end.” To which Furman adds that honest feedback is “demanded.”

“As far as ‘yes’ people – not here,” he says emphatically. People need to feel that they can speak freely when they need or want to, Furman insists.

“We actually drill it into people in our meetings and in our mission, which requires us to have fun and make money.”

These ideas about growth, structure and collaboration have brought something special to NAI Global as well.

“The CEO of NAI Global always acknowledges our firm and cites Earle’s approach of bringing in partners and sharing success as a best practice,” says Richards, who attends conferences and is active in the organization.

“This industry is dominated by corporate-owned firms or one to two partners in a family-owned firm,” Richards observers. “Many of those owners are now in Earle’s peer group, and they want to make the change that Earle started more than 20 years ago.”

Assessing the last 30 years, Furman chooses not to identify big deals or projects. “Milestones,” he concludes, “are not only deals but directions you have taken.”

partnership organization. Three partners – P. Randall Bentley, Ford Borders and William Burgess – join the firm, which now has 14 brokers and 10 support staff.

1997 – The firm launches the first of six divisions, Property Management.

1999 – The firm affiliates with NAI Global and rebrands as NAI Earle Furman.

2003 – More than $100 million in transactions is reached for the first time in the firm’s history. The company also moves to its current location at 101 E. Washington St. 2006 – Celebrating its 20th anniversary, the firm doubles its transaction value to a new milestone of $219.3 million.

2009 – The managed property division now has 5 million square feet of commercial space under management; the firm as a whole has 50 members.

2011 – A multifamily division is launched to focus only on apartments and capitalize on a new trend toward rentals.

2012 – NAI Earle Furman opens an office in Spartanburg.

2014 – An Anderson office is added to the firm. Kay Hill becomes the firm’s first female partner.

2015 – A record 584 transactions are completed, accounting for $328.9 million in sales.

2016 – The NAI Earle Furman team, now with 17 partners, 80 brokers, six divisions and three Upstate offices, celebrates its 30-year anniversary.

24 | QUARTERLY CRE ISSUE |

UBJ

CRE OVERVIEW

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10.28.2016

Developers see strengthening Greenville real estate market DAVID DYKES | STAFF

ddykes@communityjournals.com A strengthening real estate market is aiding Greenville’s development picture, but underlying geographic and demographic changes are adding interesting variables to the equation, according to local experts and analysts.

“We have been on an aggressive mode of expansion in terms of where we can grow outside of Charleston,” Dan Doyle, vice president of development at the Charleston-based Beach Company, said during a recent CREW Upstate real estate panel discussion in Greenville.

“We want to target markets that have an in-migration of population so we have people that are moving to the area versus moving from,” he said. “A lot of that is fueled by job growth, which is prevalent throughout the Southeast right now.”

The region, he said, “is just a real focus for a place where people want to live, where they want to move their families to, where jobs want to relocate to.”

And Greenville falls in the middle of that map, Doyle said.

There is a key second component, he said. “When you look at the infrastructure that’s in place, to set up a great place to live and to work, Greenville checks that box – and then some.

There are very few locations, in my opinion, that can compete with the setting that you all have here in town.”

Main Street typically has been Greenville’s downtown development focus, but that focus is moving to other areas, “which is a very positive sign,”

“When you look at the infrastructure that’s in place, to set up a great place to live and to work, Greenville checks that box – and then some.”

Dan Doyle, vice president of development, Beach Company

Doyle said.

“This is a location that had a need,” Doyle said of Greenville. “Particularly from a multifamily standpoint in the downtown location, there were very few apartments built up until recently.

When you marry that up with the changes that are going on with demographics, where people are choosing to live, how a millennial population chooses to live, how they’re delaying the decision to buy a house until later in life, it sets the tone and it sets the stage for what you’re seeing today.”

Tommy Molin, senior associate with CBRE and another panel member, said multifamily projects with commercial components are “100 percent the new norm” for developers.

“In particular in the Southeast, but across the country, urban apartment projects all are basically required or the cities all want them to have commercial space,” he said. “The trend’s certainly going to continue.”

Another dynamic is at play, according to real estate experts.

Investment activity in Greenville is escalating as more institutional investors enter the market looking for steady and secure cash flow investments, due partly to the shift of investors from saturated and competitive primary markets to secondary and tertiary markets, according to Colliers International researchers.

High occupancy and asking rental rates are in turn creating a lower-risk environment with opportunity for higher returns for local and out-ofmarket investors, the researchers said.

“It takes a while for those institutions to get comfortable with a location,” Doyle said. “You are now seeing those institutional players come into this market and they now believe in Greenville. They now know Greenville.

That will help fuel more investment into this area.”

Doyle’s firm is behind the Main + Stone and South Ridge projects in Greenville.

South Ridge, a mixed-use residential and retail development at South Church Street and University Ridge, has 350 apartment units.

In choosing the South Ridge location, Beach Company officials noted the development was “situated between the highly desirable Augusta Road neighborhood and the unique urban

“There are going to be infill opportunities in the city. But this is something that’s going to affect retail and office and locations of all kinds of different uses.”

J. Terrence Farris, associate professor, Clemson University

parks of downtown Greenville.”

South Ridge has one-, two- and three-bedroom units in the proximity of Cleveland Park, the Greenville Health System Swamp Rabbit Trail and Falls Park.

The project also includes retail and commercial space, as well as a parking garage at the center of the property.

Main + Stone is a 292-unit mixeduse development under construction in Greenville’s downtown submarket.

In addition to apartment homes, it will add 20,800 square feet of retail and commercial space in the North Main area.

Doyle said several years ago his company began introducing smaller floor plans in its new multifamily developments. Company officials thought renters would be willing to trade square footage for a lower price.

“That enabled us to get a unit into the marketplace that, if I wanted to live by myself and I didn’t want to have a roommate, I could afford,” Doyle said.

Partners and lenders questioned the strategy, but it proved successful in Charleston, Doyle said. It’s also proving successful in Greenville.

Studio apartments “are the first ones to lease,” he said.

“The sweet spot is around $1,000,” said Donna Brashier, a portfolio manager at Beach and another panelist.

“If you can get that price point to $1,000 or $1,100, they fly off the shelf.”

In the Upstate, construction deliveries and net absorption are up since 2011 while vacancy rates have declined

for office, industrial, flex and retail space, J. Terrence Farris, a Clemson University associate professor, said at the real estate forum.

“Things are looking pretty good,” said Farris, who focuses on urban renewal history and futures research.

Developers are building about 1 million square feet of retail space in the Upstate each year, he said.

“As I like to tell our students, that’s like one regional mall a year,” Farris said.

Since 2001, 6 percent of single-family and 70 percent of multifamily permits in Greenville County have been in the city of Greenville, Farris said.

“Single-family is still going to be built at the edge [of Greenville],” he said. “There are going to be infill opportunities in the city. But this is something that’s going to affect retail and office and locations of all kinds of different uses.”

In discussing whether commercial real estate demand is sustainable, Wells Fargo economic analysts said last month operating fundamentals are still positive.

“In particular in the Southeast, urban apartment projects all are basically required … to have commercial space.”

Tommy Molin, senior associate, CBRE

Based on data from CoStar, the retail vacancy rate reached an all-time low in the second quarter, and asking-rent growth continues to advance at a healthy pace, said senior economist Anika R. Khan and analysts Azhar Iqbal and May Tysinger.

Mall asking-rent growth notched a double-digit gain in Q2, and neighborhood center activity is also improving.

Much of the surprising sector resilience can be traced to landlords shifting the tenant mix from traditional anchors to “experiential” anchors, like restaurants, the analysts said.

10.28.2016

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upstatebusinessjournal.com

GUEST COLUMN

| QUARTERLY CRE ISSUE | 25

Retail sector evolves from brickand-mortar to bricks-and-clicks

By TOMMY MOLIN SENIOR ASSOCIATE, CBRE

Greenville’s fundamentals and current and projected economic state show that retail in the area has room to expand and remain healthy.

Job growth is strong, and we are beginning to see new-home construction return to historic trends. These two indicators should be pushing the retail sector into an aggressive expansion mode. The truth is the retail sector is expanding, but it looks and feels different from previous cycles.

To explain the trend further, it is best to divide the retailers into two types: those impacted by e-commerce, and those who have not yet been impacted.

Yes, it’s trendy to talk about e-commerce and its role in broader retail trends, but not often do we have an opportunity to talk about what that actually does to retail real estate. E-commerce has changed the way retail operates. Prior to the prevalence of e-commerce, shopping centers were filled with big box tenants occupying standard sizes ranging from 25,000 to 100,000 square feet. Typical names include Staples, Academy Sports, Old Navy, etc.

Due to the growth of e-commerce, retail tenants are evolving from brickand-mortar retail to bricks-and-clicks retail. A retailer’s online strategy is now just as important as retailer standbys like store layout, access and co-tenancy.

Retailers affected by e-commerce are exhibiting the following trends: more conservative expansion plans, shrinking footprints and increasingly sophisticated logistics systems. Instead of opening 10 new, 25,000-square-foot stores sprinkled throughout a market, a retailer may instead opt for three 15,000-square-foot stores in the best locations and a 250,000-square-foot distribution center.

For retailers impacted sparingly by e-commerce, most notably grocery stores and restaurants, aggressive expansion is unfolding. There are eight new grocery stores either under construction or in the planning phases in Greenville-Spartanburg.

Restaurant retail is potentially the most interesting category at the

moment, as its success is helping to boost small-shop rents in downtown Greenville by more than 40 percent in the past five years, making downtown the most expensive location to open a restaurant in the market. There also is ample restaurant activity in suburban submarkets, but supply is more constrained downtown, forcing rents to rise faster.

One of the downsides of the rise in rents in downtown Greenville is the impact on existing retailers. Many local retailers are facing the prospect of significant increases in rent. It is anticipated that some retailers with a presence on Main Street may end up opting to relocate to off-Main locations or simply give way to retailers better poised to generate the revenue required to pay these higher rents.

With aggressive expansion largely limited to grocery stores and restaurants, there is a noticeable lack of large-scale shopping center construction. The two most recent examples of this are Easley Town Center and Magnolia Park Town Center. Both centers, which started prior to the recession approximately 10 years ago, were only recently completed, indicating the challenging environment for developers interested in large-scale retail development.

So, what’s next?

Well, for the time being, there will be opportunities for tenants interested in setting up shop in grocery-anchored centers. Brands that are drawn to firstgeneration space could look to cotenanting with grocers as a means to obtain the space they have in mind.

There are opportunities to make infill locations work, particularly in corridors that are ripe for redevelopment. Feasible areas for development include Laurens Road, Pleasantburg Drive and Wade Hampton Boulevard. The demographics for these areas are very strong, access is decent and there are large chunks of real estate in play. It would not be surprising to see one of these corridors lure a large retailer that previously had not considered the market before.

Over the long term, investors have reasons to be bullish. Employment levels and housing growth are strong positive indicators of a healthy outlook for the retail sector, and we expect to see increased demand for retail in the next two years.

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26 | QUARTERLY CRE ISSUE | SPENCER/HINES PROPERTIES ANNOUNCES:

Bobby Hines and Zach Hines were the agents in the lease of 1,612 SF at 105 E. North St. by KVP LLC to First Community Bank.

Andy Hayes and Ben Hines were the agents in the sale of a 2,603 SF retail property at 3605 Boiling Springs Road, Boiling Springs, by First Citizens Bank & Trust Co. to Cuba Lake LLC.

UBJ

DEALMAKERS

AVISON YOUNG COMMERCIAL REAL ESTATE ANNOUNCES:

Rob Howell was the agent in the sale of a 100,000 SF industrial building located at 17 Haywood Road by Advanced Automation Inc. to 17 Haywood Road LLC dba Professional Party Rentals.

LEE & ASSOCIATES ANNOUNCES:

Randall Bentley and Deanna Hudgens were the agents in the lease Andy Hayes and Ben of 1,504 SF at 5151 Hines were the agents Pelham Road, Ste. 100, in the sale of 4.20

by Sikes Properties LLC to acres of land at 1455 Fernwood Glendale Road, Subway Real Estate LLC. Spartanburg, by Willard Willz Tolbert was the Oil to Hillcrest Self agent in the lease of Storage.

2,743 SF at 100 Verdae Blvd., Ste. 400, by Andy Hayes and Ben Hines were the agents in Walbridge Southeast LLC to Harvey & Vallini LLC. the sale of 1.5 acres of land at 4459 S. Pine St., Spartanburg, by Thomas Willz Tolbert was the Rudeen to Pierce Limited agent in the sale of 1.85 acres at 426 Wade Partnership.

Hampton Blvd. by George Sarris & Anne Sarris to Andy Hayes and Ben Hines were the agents in Greenville (Lockbox) LLC. the sale of an 1,800 SF office at 275 E. Henry St., Kevin Bentley was Spartanburg, by LEL LLC the agent in the lease of 1,125 SF at 1608 to Christopher Brough.

Sandifer Blvd., Seneca,

by Edna Shell McCraw to Dale Seay and Craig Merck Enterprises.

Jacobs were the agents in the lease of a 1,544 SF barber shop at 1000 Ashley Trantham was N. Pine St., Spartanburg, the agent in the lease of 1,920 SF at 721

by Baker & Baker to Lowndes Hill Road, Ste. Kingdom Cuts.

A, by Aday Investments LLC to Gateway Lynn Spencer was the Children’s Inc. agent in the lease of a 1,200 SF office at 2099 S. Pine St., Unit F, Randall Bentley was the agent in the sale Spartanburg, by ARTEP of 0.0254 acres at to Upstate Center for 201 LaDean Court, Addiction.

Simpsonville, by Smith Guy Harris was the agent Corners LLC to Finn Jack in the lease of 3,500 SF Holdings LLC. at 1410 John B. White Randall Bentley was Blvd., Spartanburg, the agent in the lease

by Peter & Elizabeth of 3,000 SF lease at Neidenbach to Carolina 38 Ray E Talley, Ste. D, Nephrology.

Simpsonville, by Smith Corners LLC, to Jal Lynn Spencer was the Mex Inc dba El Tejano agent in the lease of a Restaurant, represented 6,000 SF day care at 128 E. Main St., Duncan, by Ashley Trantham, also of Lee & Associates.

by Brian Armstrong to Sharia Henderson.

Randall Bentley was

the agent in the lease of 3,527 SF 160 Congress Blvd., Ste. A, Duncan, by Bentley Construction LLC to Universal Protection Security Systems.

agent in the lease of 1034 Correll Insurance Group SF at 522 S. Main St., LLC. Simpsonville, by Susan Bright to Elite Events SC. Scott Burgess was the agent in the lease of 4,500 SF of retail space at 3320 COLLIERS N. Main St. in Anderson INTERNATIONAL Randall Bentley was

by Anderson Commons to ANNOUNCES: the agent in the lease Eyemart Express.

Richard Barrett and of 8,084 SF at 48 Brannan Hudson were Brookfield Oaks Drive, Scott Burgess was the Ste. P, by Brookfield South agents in the sale of 50.47 agent in the lease of 3,000 Associates LLC to Lennox acres of land at Broyles SF of retail space at 108 Avenue in Belton by Industries Inc. Station Drive in Anderson Synovus Bank Southern

by Anderson Station to Willz Tolbert was the agent Consulting Services.

Elite Integrated Therapy. in the sale of 0.75 acres Richard Barrett and at Augusta and Vardry Lyn Tyner was the agent Street by Norfolk Southern Brannan Hudson were in the lease of 6.5-acre Railway Company to Sam agents in the lease of 6,000 landscaping supply sales SF of flex space at 200 Vardry LLC. facility at 2611 S. Old Augusta Arbor Way, Ste. D 14 Highway in Greer by and E, by Marion & Mary Randall Bentley was Trifon Associates Inc. to Burnside to Schroeder the agent in the lease of Cason Companies Inc. Trimworks and Cabinets.

50,000 SF at 200 Ben Hamby, Ste. A, by JoCo COLDWELL BANKER Frank Hammond and Holdings LLC to Illinois COMMERCIAL CAINE’S Nick Reinhardt were Tool Works Inc. agents in the sale of 3.9 GREENVILLE AND SPARTANBURG OFFICES acres at Bell Road by Deanna Hudgens was ANNOUNCE: Alfred P .

Sellers Estate to the agent in the sale of Palmetto Trust of SC LLC. Pete Brett, David Sigmon 6.387 acres at 1534 and Matt Vanvick were E. Main St., Duncan, by Frank Hammond and Nick the agents in the sale of a Clifton Warehouse Inc. to Millennium Hospitality LLC. Reinhardt were agents in 20,300 SF medical office building on 2.68 acres at the sale of 2.4 acres at 32 Stoney Point Drive by 2510 Poinsett Highway Kevin Bentley was

by Grogan Family Trust to Greenville Health System to the agent in the lease 32 Stoney Point Drive LLC. Seasonal Cuisine LLC. of 5,000 SF at 2003 Perimeter Road, Ste. B, Pete Brett, David Sigmon Givens Stewart and by the Coleman Group Garrett Scott were agents and Matt Vanvick were Limited Partnership to in the purchase of 18.37 agents in the sale of a 3,700 Printing and Packaging acres of land in Anderson SF medical office building on Technologies.

by Techtronic Industries 0.36 acre at 713 Pendleton St. by A-1 Properties LLC NA Inc. Deanna Hudgens was to Integral HR SC LLC dba the agent in the lease InnovateHR. Brantley Anderson and of 1,560 SF at 1209 Taylor Allen were agents NE Main St., Ste. B, Sammy DuBose and Simpsonville, by Republic in the sale of 1,750 SF Charles Humphreys were of office space at 108 Finance LLC to BRP the agents in the sale of a Renaissance Circle in Investments LLC. 6,400 SF office building Mauldin by Alexrules to on 0.9 acre at 725 Great Southern Homes.

Darath Mackie was the Lowndes Hill Road by agent in the lease of 3,000 3PE LLC to 725 Lowndes Brantley Anderson and SF at 1110 W. Butler Road, Ste. F, by SEPP Inc. Taylor Allen were agents Hill Road LLC. in the lease renewal of to Eculand Food LLC. 17,516 SF of office space Graham Howle and Lakin at 201 E. McBee Ave. to Parr were agents in the Darath Mackie was the agent in the lease of 2,674 Synovus Financial Corp. sale of a 0.28 acre lot at 700 Anderson Road by SF at 1110 W. Butler David Flint to Robert Julian Road, Ste. C, by SEPP Inc. Brantley Anderson and dba Wellington Homes.

Taylor Allen were agents to Opsource LLC. in the lease of 6,528 SF Rick Cauthen was the of office space at 55 E. Ashley Trantham was agent in the sale of 0.491 Camperdown Way, Ste. the agent in the lease 225, to Alliance Biomedical acre at 107 Hillcrest of 1,220 SF at 7740 Ave., Simpsonville, by Research Holdings Inc. Augusta Road, Ste. 6F, DLP Holdings LLP to KNC Piedmont, by Wilkins Holdings LLC. Holdings LLC to Moonville Brantley Anderson and Taylor Allen were agents RC and Hobby Center. in the lease of 2,200 SF Pete Brett, David Sigmon of office space at 1707 N. and Matt Vanvick were Willz Tolbert was the agents in the lease of 2,800 Main St. in Anderson to

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10.28.2016

SF office space at 24 Vardry St., Ste. 303, by Blue Building LLC to Engenious Development LLC. Pete Brett, David Sigmon and Matt Vanvick were agents in the lease of 3,255 SF of restaurant space at 164 S. Main St., Travelers Rest, by Specialized Matthews LLC to Farmhouse Tacos LLC. Pete Brett, David Sigmon and Matt Vanvick were agents in the lease of a 7,616 SF office condominium at 103A Regency Commons Drive, Greer, by JMG Capital Management to Saltz LLC dba The Saltz Medical Spa. Pete Brett, David Sigmon and Matt Vanvick were agents in the lease of 2,190 SF retail space at 407 Augusta St. Claussen Ave. Investors LLC to The Brass Bee Salon & Boutique LLC. Rick Cauthen was the agent in the lease of 723 SF retail space at 505-C N. Main St., Mauldin, by Henderson Enterprises to Northridge Inc. Rick Cauthen and Charles Humphreys were agents in the lease of 1,500 SF retail space at Woodruff Gallery Shopping Center, 1178 Woodruff Road, Ste. 6, by Callista, LLC to Kirk Investments Inc. dba Curves.

Matt Vanvick was the agent in the lease of a small office suite at 217 E. Stone Ave. by Stone Avenue Partners LLC to Chris Challis.

Graham Howle and Lakin Parr were agents in the lease of 20,000 SF industrial space at 101-C Groce Road, Lyman, by EF Enterprises LLC to Coastal Corrugated Inc. Nicholas Sardone was the agent in the lease of a 25,000 SF industrial building at 1221 Harbour Towne Drive, Myrtle Beach, by H & B Properties LLC to American Residential Services LLC.

28 | SQUARE FEET |

REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION

DAVID DYKES | STAFF ddykes@communityjournals.com |

UBJ

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10.28.2016

@daviddykes

Front Row: Greenville Planning Commission, October meeting An Augusta Street shopping center and a new development along West Stone Avenue were the main topics before the Greenville Planning Commission in its monthly meeting last week.

Lewis Plaza The City of Greenville Planning Commission approved a developer’s request to modify his plan to remake the Lewis Plaza Shopping Center on Augusta Street.

2,900-square-foot building at the site to house a Wells Fargo branch.

Including the proposed modification, the shopping center would have 102,950 square feet of office and retail space when completed.

No one opposed the modified plan at the commission’s Oct. 20 meeting.

The commission’s approval was subject to a staff recommendation that the applicant provide an amended planned development agreement.

West Stone Avenue

Narramore Associates

Developer Tex Small has said he bought an office building at the site that houses the Woodward Medical offices.

Small said he plans to tear down the building along Aberdeen Street and build a new two-story, 15,000-square-foot building for the doctors that would be incorporated into the remade Lewis Plaza.

Small’s previously approved plans for the 68-year-old shopping center call for a 60,000-square-foot Harris Teeter as the anchor. The developer just completed a

The commission also recommended to City Council the rezoning of four parcels fronting West Stone Avenue for a retail, restaurant and office-space development, including a second Coffee Underground location.

Developers Pete Brett and Michael Fletcher are under contract to purchase the 1-acre property at 109 W. Stone Ave., home to Battery and Electric Company, a small-engine parts store, along with other businesses since the 1960s. BECO is moving to a new location.

The property has historic significance, as it was also home to Star Cleaners, one of the first commercial buildings built on Stone Avenue in the

been in business for 21 years.

The application from Westone Development LLC will go before City Council for two readings. Since the property was once home to a dry cleaner, the site is also under a DHEC voluntary cleanup.

Other action 1920s, Brett has said.

There is approximately 18,000 square feet of existing buildings, which Brett and Fletcher said they would redevelop, not tear down.

“There’s a very big need for commercial businesses along this corridor,” Mark Godfrey, a West Stone Avenue architect, said in support of the project.

“It’s a growing area. There’s a lot of residents that may not want to go all the way to downtown to eat and drink and be merry. I support what they’re doing, especially the fact that they’re maintaining a lot of the existing structures and redeveloping instead of clearing a site and starting from scratch. I appreciate that as a designer.”

Brett and Fletcher hope to have a good mix of restaurant, general retail, office and maybe a fitness center or brewpub.

The second Coffee Underground location will occupy approximately 4,000 square feet. Owner Dana Lowie says she plans to expand her offerings with more food and restaurant space than the downtown location that’s

Work efficiently, close

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The commission also: Recommended, subject to staff conditions and approval by City Council, rezoning 2.4 acres on Bennett Street that includes the historic Beattie House on the northern edge of the property. The City of Greenville applied to rezone the acreage from RM-2, single- and multifamily residential, to OD, office and institutional, for Lot 1 and R-6, single family residential, for Lot 2. The OD designation will allow more opportunity for different uses for the Beattie House as well as opportunity for reinvestment and rehabilitation, planning staff members said.

Colliers International is representing the city in the sale of the Beattie House, the third-oldest structure in Greenville.

The 4,908-square-foot two-story home is being sold through a sealed-bid process.

Approved an application from Mark Thoennes Builders LLC to develop 10 townhouses on 0.65 acres on the southwest corner of Arlington Avenue and South Leach Street. The action was subject to staff approval of site lighting, fence details and final materials and colors.

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upstatebusinessjournal.com

THE FRESHEST FACES ON THE BUSINESS LANDSCAPE

| NEW TO THE STREET | 29

Keep your promises to employees A psychological contract is just as important as a written one

By TOM ZAGENCZYK Associate Professor, College of Business, Clemson University

The relationship between employer and employee may appear at first glance to be a simple one in which the employer offers compensation for the completion of job duties. However, most employees perceive that the organization makes promises related to training, promotions, job security and other factors not recognized formally in contracts, especially during recruiting and socialization periods.

Globalization, technological shifts and economic changes have made organizational environments increasingly competitive and have often caused employee-organization relationships to become progressively transactional and strained. However, organizational membership is still an important component of employees’ social identities, and failure to fulfill psychological contracts – known as “psychological contract breach” – results in increased stress, burnout, counterproductive behavior, withdrawal and decreased citizenship. These outcomes carry significant costs for employees and organizations.

So what can organizations do to reduce the negative effects of psychological contract breach?

The answer begins with understanding the culture of the organization and individual dif-

ferences of employees. The degree to which organizational culture is perceived to be aggressive is important: When employees see that aggressive behavior is tolerated at work, this tends to make it seem acceptable and increases the likelihood that they will behave aggressively when a breach occurs.

The degree to which culture is perceived to be political is also critical: Employees who believe that the organizational decisions are driven by politics tend to respond much more negatively to breaches than do employees who believe that organizational politics are benign. This means that managers must provide information about why decisions are made in a respectful manner to make employees feel valued, even when those decisions affect them negatively.

Personality matters as well. Employees with high levels of Machiavellianism (who ignore their ethics and values and behave as if the ends justify the means) tend to respond more negatively to breaches, whereas employees with high levels of self-control (who can better regulate their behavior) are less likely to

Managers must provide information about why decisions are made in a respectful manner to make employees feel valued, even when those decisions affect them negatively. engage in bad behaviors when they experience breaches.

Finally, supportive relationships in the workplace can help employees to better understand why a breach occurs and react to it in a more constructive way. Thus, fostering supportive mentoring and supervisory relationships is critical, as mentors and supervisors can help employees to understand breaches and can provide support that helps them to deal with their consequences.

DEFINED PSYCHOLOGICAL CONTRACT: The mutual beliefs, perceptions and informal obligations between an employer and an employee.

• Perceived psychological contract breach in employees is measured by the answers to these questions, on a seven-point scale: I feel a great deal of anger toward my organization.

I feel betrayed by my organization.

I feel that my organization has violated the contract between us.

I feel extremely frustrated by how I have been treated by my organization.

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10.28.2016

Greenville Chamber

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10.28.2016

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upstatebusinessjournal.com

HIRED

INSIDE THE UPSTATE’S NETWORKING AND SOCIAL SCENE

HIRED

PROMOTED

PROMOTED

| SOCIAL SNAPSHOT | 31

ELECTED

RAJNI PATEL

LANCE BYARS

MELISSA GOODWIN

JB SCHWIERS

KEVIN CRITTENDON

Joins C. Dan Joyner Berkshire Hathaway as a commercial real estate broker specializing in the hospitality industry. Having management, investment, development and finance experience with a formal accounting perspective, Patel has been in the hotel/motel brokerage business for more than 20 years.

Joins Colliers International as a brokerage associate. Byars will be a member of the Greenville retail brokerage team, focusing on the representation of owners, buyers and tenants in purchasing and leasing of retail space in the Upstate market. He will also work alongside Scott Burgess as a member of the Retail Services Group, a select group of brokerage associates focused on retail brokerage in South Carolina.

Named vice president of strategic planning and research of DX Marketing.

Previously serving as a data analyst at DXM, Goodwin now oversees the company’s strategy and planning teams and processes, which includes category and brand planning for clients, management and integration of leading industry research and partnering with the business development team on acquisition functions.

Named president and CEO of GrandSouth Bank by the board of directors. Schwiers follows Ronald Earnest, who recently announced his retirement from these leadership roles. Schwiers has most recently been serving as executive vice president and COO of GrandSouth. He has 36 years of experience in the banking industry.

Elected to serve as vice chair of the Carolinas Chapter for the Society of Maintenance and Reliability Professionals (SMRP). Crittendon is director of continuous improvement for GreenWood Inc., an integrated maintenance, construction and workforce solutions provider. SMRP is a nonprofit professional society formed by practitioners to advance the reliability, maintenance and physical asset management industry.

VIP Local attorney John T. Crawford Jr. has been appointed by Gov. Nikki Haley to serve on the Renewable Water Resources (ReWa) Board of Commissioners. A Connecticut native who grew up in South Carolina, Crawford graduated from The Citadel with academic and military honors. He earned his law degree from the University of South Carolina School of Law, where he was a Carolina Scholar. He began his legal career with the construction practice group of a large national law firm in Greenville and joined Kenison, Dudley & Crawford LLC in 2005. He is the co-author of “Defenses in Construction Defect Case,” which was published in the ABA Construction Law Journal, South Carolina Mechanics’ Liens and Bonds and South Carolina Construction Law Update.

CONSTRUCTION O’Neal Inc., a Greenville-based integrated design and construction firm, has hired Chrissy Cooper as a structural designer. Cooper has more than 10 years of structural design experience. She previously worked for Ford, Bacon & Davis and Michelin. She earned her associate degree in architectural engineering from Greenville Technical College.

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32 | THE FINE PRINT |

UBJ

BUSINESS BRIEFS YOU CAN’ T MISS

PETER MILLAR TRUNK SHOW

|

10.28.2016

Planar donates cutting-edge technology to Clemson’s Watt Center

FRIDAY AND SATURDAY, OCTOBER 28-29

15% SAVINGS

Planar, a Leyard company and global leader in display and digital signage technology, has become the first Sustaining Innovation Partner for Clemson University’s Watt Family Innovation Center with a gift-in-kind of more than $1 million worth of cutting-edge display technology.

The newly combined company supplied the Watt Center with 191 large-format, high-resolution interactive LCD displays and 12 LCD video walls, including the video wall in the auditorium. It is one of the largest interactive LCD video walls the company has implemented.

Planar displays are front and center in the building’s main lobby. Each classroom, hallway and study space throughout the building features Planar LCD displays that can be used by students and teachers for formal or spontaneous collaboration.

Morley opens new facility, creates 270 jobs

“Purveyors of Classic American Style”

864.232.2761 | rushwilson.com 23 West North St. | Downtown Greenville

Morley, an award-winning customer service company, is now hiring to fill its new customer contact center in Greenville County. The new 25,000-square-foot facility located at 400 Brookfield Parkway will create more than 270 new jobs, the majority of which are for customer service representatives. Morley is also seeking candidates for a human resources recruiter, real-time adjuster and technical support specialist. Morley is a 153-year-old company that serves a diverse group of Fortune 500 global clients. Its product groups include business process outsourcing, meetings and incentives and exhibits and displays.

>>

10.28.2016

|

upstatebusinessjournal.com

THE FRESHEST FACES ON THE BUSINESS LANDSCAPE

Open for business 1

| NEW TO THE STREET | 33

It’s almost THAT time to renew with

VisitGreenvilleSC!

1. Wyndham Garden Greenville Airport recently reopened following extensive renovations. The hotel is located at 47 Fisherman Lane.

Visit wyndham.com/hotels/49118 to learn more.

Photo provided

Don’t miss your chance to be included in the 2017 Official Greenville, SC Visitor’s Guide! Be sure to set aside your budget dollars to renew your membership with VisitGreenvilleSC – due by October 31, 2016. Call 864.421.0000 if you have any questions and keep an eye out for your forthcoming invoice and additional membership details.

2

Not a member yet?

Call Molly at 864.233.0461 to learn more today!

2. Simply Southern Chiropractic recently opened at 922 N. Church St. Learn more at simplysouthernchiropractic.com.

Photo provided

CONTRIBUTE: Know of a business opening soon?

Email information to aturner@communityjournals.com.

>>

ICA Fluor awarded gold and silver project in Mexico

Fluor Corporation announced that ICA Fluor, its industrial engineering and construction joint venture with Empresas ICA, S.A.B. de C.V., was awarded an engineering, procurement and construction management contract by Minas de La Alta Pimeria S.A. de C.V. (MAPSA), a subsidiary of Goldcorp, for the Pyrite Leach Project in Zacatecas, Mexico. Fluor booked its share of the undisclosed contract value into backlog in the third quarter of 2016.

Located at the Peñasquito mine, the new facility will process existing zinc tailings to increase overall gold and silver recoveries prior to final deposition at the existing tailings storage facility, thereby increasing the overall viability of Goldcorp’s facility.

34 | #TRENDING |

UBJ

INFORMATION YOU WANT TO KNOW

OVERHEARD @ THE WATERCOOLER

> Jimmie Ruth “I am all for hotels. I don’t understand the need to completely obscure the falls with buildings, especially since such a big deal was made and thousands of dollars spent to make them visible.

SMH.”

OCTOBER 21, 2016

DIGITAL FLIPBOOK ARCHIVE >>

| VOL. 5 ISSUE 43

A A RO OM W ITH

NEW VIEW

e hotel emian boutiqu y River falls The Grand Boh perspective of Reed

will offer a new

PAGE 14

Photo by Will

Crooks

The layout of print meets the convenience of the Web. Flip through the digital editions of any of our print issues, and see them all in one place. >> upstatebusinessjournal. com/past-issues

> Betty Romani “Another hotel in TR would be great.”

>> WEIGH IN @ THE UBJ EXCHANGE

> Shannon Kelly “We so need more rooms downtown. This is great news.”

Got something to offer?

Get it off your chest.

> Scott Butler “But weren’t there already plans in the works to double the number of hotel rooms downtown?” > Jo Allen “Between the hotels and apartments, the green is leaving our beautiful downtown area. I realize Gville enjoys the tourists, but at what cost? The parking is terrible, and I don’t and will not enjoy walking six blocks to have a dinner in the downtown area due to all lots being sold for some type of building.”

We’re looking for expert guest bloggers from all industries to contribute to the UBJ Exchange. Send posts or blog ideas to dcar@communityjournals.com. > Jerod Bodi “Thank God. This city needs hotels! Highest occupancy rate in the state the past two years and above national average!” > Libby McMillan Henson “This is fantastic news for Greenville. Kessler has a long history of building and/or preserving buildings that are in keeping with their environs.

The Savannah riverfront is a great case in point. I’m thrilled Kessler is investing in our beautiful city. #yeahTHATgreenville”

THURSDAY • NOVEMBER 3 Join us for our 6th Annual

Member Sponsor Event CREW Upstate shows appreciation for our members and sponsors and welcomes new members/sponsors to come and learn about the dynamic benefits of being a part of CREW Upstate.

5:30 - 7:30PM McMillan Pazdan Smith Architecture 400 Augusta Street, Suite 200 Local brews, wine, and hors d’oeuvres will be served.

RSVP on our website: crewupstate.org/event/membersponsorevent/

Upstate

10.28.2016

BIZ BUZZ

Distilled commentary from UBJ readers

RE: WITH THE COMING OF THE GRAND BOHEMIAN HOTEL, A NEW ENTRYWAY TO DOWNTOWN EMERGES

|

> Kimberly Diello “Boooooo. Tell me I’m the only one who thinks there’s far too many hotels in this city”

RE: RESTAURATEURS PREPARE FOR THE LABOR DEPARTMENT’S NEW OVERTIME RULES > Deb Messmer “Either hire more people so the ones on staff now don’t have to work to exhaustion or pay them overtime for putting your business ahead of their personal lives. Your business should not be pocketing hefty profits at the expense of the workforce.”

The Top 5 stories from the past week ranked by shareability score

>> 1,100 1. With the coming of the Grand Bohemian hotel, a new entryway to downtown emerges

>> 79 2. The Grand Bohemian: What exactly does a boutique hotel look like?

>> 74 3. SCELP opens Greenville office to fight environmental health

>> 55 4. Holroyd Precision Rotors opens first U.S. plant in Spartanburg

>> 55 5. Grill Marks expands to Haywood Mall

SUBSCRIBE TO OUR EMAILS Follow up on the Upstate’s workweek in minutes.

Subscribe to our emails & receive The Inbox – our weekly rundown of the top 10 local biz stories you need to know – as well as breaking news alerts. It’s the best way to stay informed on the go. >> upstatebusinessjournal.com/email

ORDER A PRINT SUBSCRIPTION Style & substance are not mutually exclusive.

Our print issues look great in waiting rooms, lobbies and on coffee tables (where they age well, too). Order a year of UBJ in no time, and we’ll deliver every week. >> upstatebusinessjournal.com/ subscribe

UPSTATEBUSINESSJOURNAL.COM

10.28.2016

|

upstatebusinessjournal.com

DATE

EVENTS YOU SHOULD HAVE ON YOUR CALENDAR

| PLANNER | 35

EVENT INFO

WHERE DO I GO?

HOW DO I GO?

11/1

VentureSouth Workshop: How to Pitch to Investors

NEXT Innovation Center 411 University Ridge 11:30 a.m.–1 p.m.

Cost: $39 Register: bit.ly/2fcKsZW

Tuesday

Greenville Chamber Minority Business Accelerator Information Session for 2017 Cohort

Greenville Chamber Board Room 24 Cleveland St. 2–3:30 p.m.

Cost: Free Register: bit.ly/2eIBH7d

Greenville Chamber Athena Leadership Sympsosium

TD Convention Center 1 Exposition Drive 11:30 a.m.–1 p.m.

Cost: $25 for investors $35 for general admission For more information: contact Nika White at nwhite@greenvillechamber.org

Piedmont SCORE Successfully Position Your Small Business in Your Target Market

NEXT Innovation Center 411 University Ridge 6–8 p.m.

Cost: $19 Register: piedmontscore.org/workshopsa

Digital Manufacturing Technology Summit

Online 9 a.m.–4 p.m.

Cost: Free Register: tpm.com/digital-manufacturing-technology-summit

Tuesday

11/1 Monday

11/7 Wednesday

11/9 Thursday

11/10

CONTRIBUTE: Got a hot date? Submit event information for consideration to events@upstatebusinessjournal.com.

DIRECTOR OF EVENTS & ACCOUNT STRATEGY Kate Madden

PRESIDENT/CEO

ART & PRODUCTION VISUAL DIRECTOR

Mark B. Johnston mjohnston@communityjournals.com

Will Crooks

UBJ PUBLISHER

Bo Leslie | Tammy Smith

Ryan L. Johnston rjohnston@communityjournals.com

EDITOR

Chris Haire chaire@communityjournals.com

MANAGING EDITOR

Jerry Salley jsalley@communityjournals.com

ASSOCIATE EDITOR

Emily Pietras epietras@communityjournals.com

STAFF WRITERS

Trevor Anderson, David Dykes, Caroline Hafer, Andrew Moore, Cindy Landrum

CONTRIBUTING WRITERS Rudolph Bell, Sherry Jackson, Ariel Turner, Melinda Young

DIGITAL OPERATIONS MANAGER Danielle Car

MARKETING & ADVERTISING SALES REPRESENTATIVES Nicole Greer, Donna Johnston, Annie Langston, Lindsay Oehmen, Emily Yepes

IN THIS WEEK’S ISSUE OF UBJ? WANT A COPY FOR YOUR LOBBY?

UBJ milestone jackson Marketing Group’s 25 Years 1988 Jackson Dawson opens in Greenville at Downtown Airport

1988

Holly Hardin

ADVERTISING DESIGN

1997 Jackson Dawson launches motorsports Division 1993

1990 Jackson Dawson acquires therapon marketing Group and moves to Piedmont office Center on Villa.

LAYOUT OPERATIONS

NOVEMBER 11 THE BEER BUSINESS Success is on tap for this hopping industry.

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

UBJ milestone

>>

with a majority of them utilizing the general aviation airport as a “corporate gateway to the city.”

In 1997, Jackson and his son, Darrell, launched Jackson Motorsports Group. The new division was designed to sell race tires and go to racetracks to sell and mount the tires. Darrell Jackson now serves as president of the motorsports group and Larry Jackson has two other children and a son-in-law who work there. Jackson said all his children started at the bottom and “earned their way up.”

Jackson kept the Jackson-Dawson branches in Detroit and others in Los Angeles and New York until he sold his portion of that partnership in 2009 as part of his estate planning.

The company now operates a small office in Charlotte, but its main headquarters are in Greenville in a large office space off Woodruff Road, complete with a vision gallery that displays local artwork and an auditorium Jackson makes available for non-profit use. The Motorsports Group is housed in an additional 26,000 square feet building just down the street, and the agency is currently looking for another 20,000 square feet.

Jackson said JMG has expanded into other verticals such as financial, healthcare, manufacturing and pro-bono work, but still has a strong focus on the auto industry and transportation. It’s

Chairman larry Jackson, Jackson marketing Group. Photos by Greg Beckner / Staff

Jackson Marketing Group celebrates 25 years By sherry Jackson | staff | sjackson@communityjournals.com

Solve. Serve. Grow. Those three words summarize Jackson Marketing Group’s guiding principles, and according to owner Larry Jackson, form the motivation that has kept the firm thriving for the past 25 years.

Jackson graduated from Bob Jones University with a degree in video and film production and started his 41-year career in the communications industry with the U.S. Army’s Public Information Office. He served during

Vietnam, where he said he was “luckily” stationed in the middle of Texas at Fort Hood.

He left the service and went to work in public affairs and motorsports at Ford Motor Company in Detroit.

After a stint at Bell and Howell, where he was responsible for managing Ford’s dealer marketing and training, the entrepreneurial bug hit and he co-founded Jackson-Dawson Marketing Communications, a company specializing in dealer training and product launches for the auto industry in 1980.

In 1987, Jackson wanted to move back south and thought Greenville would be a good fit. An avid pilot, he

learned of an opportunity to purchase Cornerstone Aviation, a fixed base operation (FBO) that served as a service station for the Greenville Downtown Airport, providing fuel, maintenance and storage.

In fact, when he started the Greenville office of what is now Jackson Marketing Group (JMG) in 1988, the offices were housed on the second floor in an airport hangar.

“Clients would get distracted by the airplanes in the hangars and we’d have to corral them to get back upstairs to the meeting,” Jackson said.

Jackson sold the FBO in 1993, but says it was a great way to get to know Greenville’s fathers and leaders

>>

2003 motorsports Division acquires an additional 26,000 sq. ft. of warehouse space

1998 1998 Jackson Dawson moves to task industrial Court

also one of the few marketing companies in South Carolina to handle all aspects of a project in-house, with four suites handling video production, copywriting, media and research and web design.

Clients include heavyweights such as BMW, Bob Jones University, the Peace Center, Michelin and Sage Automotive. Recent projects have included an interactive mobile application for Milliken’s arboretum and 600-acre Spartanburg campus and a marketing campaign for the 2013 Big League World Series.

“In my opinion, our greatest single achievement is the longevity of our client relationships,” said Darrell Jackson. “Our first client from back in 1988 is still a client today. I can count on one hand the number of clients who have gone elsewhere in the past decade.”

Larry Jackson says his Christian faith and belief in service to others, coupled with business values rooted in solving clients’ problems, have kept

2009 Jackson Dawson changes name to Jackson marketing Group when larry sells his partnership in Detroit and lA 2003

2009-2012 Jackson marketing Group named a top BtoB agency by BtoB magazine 4 years running

him going and growing his business over the years. He is passionate about giving back and outreach to non-profits. The company was recently awarded the Community Foundation Spirit Award.

The company reaffirmed its commitment to serving the community last week by celebrating its 25th anniversary with a birthday party and a 25-hour Serve-A-Thon partnership with Hands on Greenville and Habitat for Humanity. JMG’s 103 full-time employees worked in shifts around the clock on October 22 and 23 to help construct a house for a deserving family.

As Jackson inches towards retirement, he says he hasn’t quite figured out his succession plan yet, but sees the companies staying under the same umbrella. He wants to continue to strategically grow the business.

“From the beginning, my father has taught me that this business is all about our people – both our clients and our associates,” said his son, Darrell. “We have created a focus and a culture that strives to solve problems, serve people and grow careers.”

Darrell Jackson said he wants to “continue helping lead a culture where we solve, serve and grow. If we are successful, we will continue to grow towards our ultimate goal of becoming the leading integrated marketing communications brand in the Southeast.”

2011 Jackson marketing Group/Jackson motorsports Group employee base reaches 100 people

2008 2012 Jackson marketing Group recognized by Community Foundation with Creative spirit Award

pro-bono/non-proFit Clients American Red Cross of Western Carolinas Metropolitan Arts Council Artisphere Big League World Series The Wilds Advance SC South Carolina Charities, Inc. Aloft Hidden Treasure Christian School

CoMMUnitY inVolVeMent & boarD positions lArry JACkson (ChAirmAn): Bob Jones University Board chairman, The Wilds Christian Camp and Conference Center board member, Gospel Fellowship Association board member, Past Greenville Area Development Corporation board member, Past Chamber of Commerce Headquarters Recruiting Committee member, Past Greenville Tech Foundation board member David Jones (Vice President Client services, Chief marketing officer): Hands on Greenville board chairman mike Zeller (Vice President, Brand marketing): Artisphere Board, Metropolitan Arts Council Board, American Red Cross Board, Greenville Tech Foundation Board, South Carolina Chamber Board eric Jackson (Jackson motorsports Group sales specialist): Salvation Army Boys & Girls Club Advisory Board

November 1, 2013 Upstate bUsiness joUrnal 21

20 Upstate bUsiness joUrnal November 1, 2013

AS SEEN IN

NOVEMBER 1, 2013

Kristy Adair | Michael Allen

CLIENT SERVICES Anita Harley | Jane Rogers

EXECUTIVE ASSISTANT Kristi Fortner

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Contact managing editor Jerry Salley at jsalley@communityjournals.com to submit an article for consideration.

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Copyright ©2016 BY COMMUNITY JOURNALS LLC. All rights reserved. Upstate Business Journal is published weekly by Community Journals LLC. 581 Perry Ave., Greenville, South Carolina, 29611.

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