Charlotte firm says office market will rebound faster than nation while retail and industrial ones grow more slowly

Integra Realty Resources believes Charlotte's office market is going to rebound faster than the nation's but that the local retail and industrial markets will rebound more slowly, according to its latest 2013 Viewpoints report, an annual report of commercial real estate valuation trends. 

Among the consulting and valuation company's findings: 

• Office (uptown) market:

• 11.4% of the Uptown office market is vacant.

• The office sector’s property values are expected to remain flat through 2014.

• It is expected to take two years for the market to balance, compared to the national average of 4.5 years.

• Retail market:

• 10.8% of the retail market is vacant.

• The retail sector’s property values are expected to increase 5% from 2012-2014.

• It is expected to take five years for the market to balance, compared to the national average of 3.3 years.

• Industrial market:  

• 16.4% of the industrial market is vacant.

• The firm predicts it will take eight years for the industrial sector to balance, compared to the national average of four.

• The industrial sector’s property values are expected to stay the same through 2012-2014.

• Apartment market:

• 5.48% of the apartment market is vacant.

• The apartment sector’s property values are forecasted to increase 20% from 2012-2014.

• 16,250 units will be under construction for the next three years.

Davidson-based Rose and Associates expands services

Davidson-based real estate advisory firm Rose and Associates has hired Budd Berro, former director of the Piedmont Regional Office of the Governor of North Carolina. Berro will serve as senior finance and public policy consultant.

Berro's addition comes as the firm is expanding its services to help the public sector with economic development.

“Expanding our services to include public sector implementation is an exciting next step for Rose & Associates,” says Kathleen Rose, President and CEO. “Many communities struggle with economic development either because they don’t have a strategic plan or because they simply don’t have staff with the skills, experience or resources to execute a plan. Our team will work as an extension of municipal staff, putting programs, initiatives and operational structures in place and creating infrastructure that supports a vibrant local economy.”



With 20 years of experience, Rose and Associates has advised real estate development companies, private equity firms and municipalities. 

Most recently, the city of Germantown, Tenn., hired the firm to implement a strategic economic development plan the firm developed last year. 

“Providing effective support to communities as they develop, refine and implement their economic strategies is critical to their success in creating long-term economic sustainability and growth,” Berro said. “This is what our firm is uniquely qualified to address.”

Charlotte home sales surge in January

Charlotte-area home sales soared 40.4 percent in January compared to the previous year, according to the latest data from the Charlotte Regional Realtor Association.

There were 2,163 home sales last month compared to 1,541 in January 2012, the association reported Thursday.

Average sales prices ticked up 0.6 percent annually to $189,007.

Sellers also got more of what they asked for then a year ago. Buyers paid an average 92.6 percent of the listing price, up from 90.2 percent in the beginning of 2011.

New listings, meanwhile, dipped 1.3 percent to 3,838 as the amount of available homes for sale continued to fall, dropping nearly 30 percent in January.   The Charlotte region is now thought to have a five-months supply of homes for sale.  Agents consider a six-month supply a healthy market.

The association's president Eric Locher said in a statement: "With inventory decreasing and new listings down, we are seeing continued upward pressure on prices. We are a couple of months ahead of the selling season and it’s a good time for sellers to prep homes for listing, keeping in mind that the property still needs to be realistically priced for what the market will bear.”

Homes took an average 155 days to sell, down 10 days from January 2012.

Foreclosures and short sales also dropped, accounting for 11 percent of new listings, down from 14.4 percent a year earlier.  Around 18 percent of January sales involved distressed homes, down from 21 percent during the same time last year.

Charlotte area home prices rise in December, but less than U.S.average

Home prices in the Charlotte-Gastonia-Rock Hill metropolitan area rose by 5.1 percent in December compared to a year earlier, according to real estate analytics firm CoreLogic. 

On a monthly basis, home prices rose 0.5 percent in December compared to November.

Excluding distressed sales, such as foreclosures and short sales, prices rose 4.9 percent in December compared to 2011 and increased 1 percent compared to November 2012.

The local annual price appreciation is smaller than the national improvement in home prices, CoreLogic reports. Prices nationwide jumped 8.3 percent in December compared to a year earlier, the biggest increase seen since May 2006 and the 10th consecutive monthly increase in home prices.  On a month-to-month basis, prices rose 0.4 percent in December.  

CoreLogic expects that January home prices will rise 7.9 percent on an annual basis and fall by 1 percent on a monthly basis, reflecting a seasonal winter slowdown. 

"December marked 10 consecutive months of year-over-year home price improvements, and the strongest growth since the height of the last housing boom more than six years ago," said Mark Fleming, chief economist for CoreLogic. "We expect price growth to continue in January as our Pending HPI (home price index) shows strong year-over-year appreciation."

"We are heading into 2013 with home prices on the rebound," said Anand Nallathambi, president and CEO of CoreLogic. "The upward trend in home prices in 2012 was broad based with 46 of 50 states registering gains for the year. All signals point to a continued improvement in the fundamentals underpinning the U.S. housing market recovery."

Firethorne Country Club sells

The Firethorne Country Club has been sold, according to the property's listing broker.

The new owner was not identified but described in a press release as "a new entity to the golf industry" but "a veteran of the hospitality industry."

The country club, with its 18-hold golf course, ran into problems in 2009 when it stopped paying on a $8 million loan, according to court documents filed by its lender, Textron Financial Corp. The lender said at the time the club owed more than $5.5. million.

Textron started foreclosure proceedings in 2010, but they were halted when the country club filed for Chapter 11 bankruptcy protection, listing debts of $1 million to $10 million. Textron later took over the club, located in Marvin.

Marketing materials show the listing price as $5.5 million, a 57 percent discount to the $12.7 million county assessed value.  The materials say the club has a historical annual revenue of between $4 million and $5 million.

Steven Ekovich and Chris Karamitsos with Marcus & Millichap's National Golf & Resort Properties Group represented the seller. Ekovich said he could not disclose the seller because of a confidentiality agreement. He also did not share the sales price.

Allen Tate opens new office

Allen Tate Realtors has opened a new office in Union County. The new office is at 1532 Providence Road, Waxhaw, in the New Town Market shopping center, at the intersection of Providence and New Town Roads.

            “We’re excited about this new office location, which will allow us to conveniently serve our growing customer base in both Union County (NC) and South Charlotte,” said Pat Riley, Allen Tate president and chief operating officer. “We’re right in the heart of some exciting growth areas, as well as established communities with excellent schools.”

            The office will accommodate up to 25 Realtors, including those agents who prefer to work virtually.  Lyn Kessie and DianeWolfe will manage the New Town office.

Real estate visionaries announced

The Carolinas Chapter of the Counselors of Real Estate have announced the winners of their 5th annual Creative Thinkers Awards.

The awards recognize leaders in the real estate industry "who exhibited leading edge or out-of-the-box thinking, treated obstacles and risks as opportunities for novel solutions; made cutting-edge decisions; or did something that resulted in a paradigm shift in thinking about a subject," said group chair, Loren Kennedy.

The winners are:

-Jerry Orr, aviation director with the Charlotte Douglas International Airport
-Ruth Shaw, founding chair of Carolina Threat Trail
-Michael Marsicano, president and CEO of Foundation for the Carolinas
-Ronald Carter, president of Johnson C. Smith University

The winners will be recognized at a luncheon to be held February 20 at Carmel Country Club.

The Counselors of Real Estate is an international group of people involved in real estate or who provide expert, objective advice on complex real property situations and land-related matters. Membership is invitation only.