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multifamily

4 Multifamily Development Trends to Watch in 2019

Changing demographics, shifting social values, and evolving development landscapes all continue to drive a surging, nationwide demand for multifamily housing. With empty-nesters looking to downsize, millennials staying single longer, and a general desire for a more convenient and social lifestyle, more and more “renter-by-choice” Americans are forgoing mortgages for lease agreements.

As demand for new housing units continues to drive the multifamily sector in 2019, developers are tasked with finding new ways to satisfy the growing need for apartments.

Full article HERE

Source: Multifamily Executive

The U.S. Apartment Sector Would Continue to Remain Strong Even in a Recession

Even if there is an economic downturn in the near future, the apartment sector is likely to hold up, according to industry experts.

“Apartments are still resilient against a possible recession,” says Andrew Rybczynski, senior consultant for CoStar Group Portfolio Strategy.

Though the high end of the market may be feeling the strain of overbuilding, the sector overall is benefitting from long-term trends that should continue to fill apartment units for the foreseeable future.

“In 2005 and 2006, we knew we were living on borrowed time. We knew the fundamentals didn’t makes sense,” says John Sebree, director of the national multi housing group with real estate services firm Marcus & Millichap. “Today, the apartment industry fundamentals are so strong, I don’t think a potential recession would affect us that much.”

Full article HERE

Source: National Real Estate Investor

Raleigh-Durham Poised for Another Year of Strong Growth

Economic momentum continues to build throughout the Raleigh-Durham region. Even as growth has ramped up nationwide, the Triangle region remains one of the fastest-growing areas in the country. National real GDP growth will likely end 2018 at 2.9%, backed by robust consumer spending and fiscal stimulus. We anticipate growth to moderate slightly to a still-solid 2.6% rate in 2019, as some of these tailwinds fade. The Raleigh-Durham area will continue to play a starring role in the national economic growth story, given the area’s booming tech and life sciences clusters which continue to attract new businesses and residents to the area. Raleigh ranks as the 8th fastest growing major metropolitan area in terms of real GDP growth from 2011 to 2017. The combined statistical area has added 240,000 residents during this period, lifting its population to 2.2 million. The region’s economic success is most clearly evident in the Triangle’s labor market. Both the Raleigh-Cary and Durham-Chapel Hill metro areas have seen their unemployment rates fall over the course of the past year and now sit well below the national rate at 3.1% and 3.2%, respectively. This comes as no surprise as the region has also been adding jobs at a pace well above the rest of the country. As of November, Raleigh payrolls have surged 3.2% year-over-year, propelled in large part by a booming tech industry. Job growth in Durham was slightly more moderate, but still grew 2.0%, which is ahead of the 1.7% growth seen nationwide. We suspect Durham’s slightly more modest expansion may also be underestimating growth. The Quarterly Census of Employment and Wages, which is a more complete accounting of payrolls and lags the monthly survey data by six months, shows significantly stronger job growth in Durham’s key education & health and professional & business services sectors, suggesting the preliminary estimates of job growth will be revised higher to a rate more consistent with neighboring Raleigh. Furthermore, overall employment growth in both metro areas has accelerated more recently, making the prospects for growth throughout 2019 increasingly bright.

Full PDF HERE

Source: Wells Fargo Economics Group

Charlotte job growth continues it’s growth trajectory

CHARLOTTE — Amazon nixed Charlotte’s $270 million economic incentives package, snubbing the Queen City in the process.  But with the announcement of four major economic development initiatives in the past four weeks that are set to add as many as 2,715 good paying jobs to the economy, the Queen City intends to cultivate a strong workforce to attract and retain companies and skilled individuals.

Companies expand in locations where they can either find talent or attract talent to join the region, said Tracy Dodson, assistant city manager for the City of Charlotte.

“If you build a great city, and you build a great region, you attract the talent and you retain the talent,” said Dodson.  “When there’s a city within a region where people want to live, companies can thrive, and their employees can thrive.”

And Charlotte appears to be attracting and retaining talent, with the region growing at nearly 14 percent since 2010, ranking among the top 35 fastest-growing cities by population in 2017 by the U.S. Census Bureau.

That’s more than 300,000 people that have relocated to Charlotte in seven years, and the Queen City nets roughly 60 new residents per day.  And that’s good for Charlotte, said Dodson, and good for companies that are expanding or looking to relocate to the region.

“People want to be here,” said Dodson.  “We’re trying to leverage that with companies.”

Full article HERE

Source: WRAL Tech Wire

Surprise: This Southern Hub Might Have the Best Talent Pipeline in Tech

North Carolina is home to a bustling epicenter for tech startups, brainy talent, and killer barbecue.

A hyper-educated workforce means the Research Triangle, the North Carolina region comprising Chapel Hill, Durham, and Raleigh--Inc.'s No. 3 Surge City--has a booming and brainy startup scene. Once known for tobacco and textiles, the area has reinvented itself as a hub equally well-versed in tech and food.

Startup Neighborhoods

Most residents never thought they'd see the day, but downtown Durham is now a cultural and entrepreneurial hotbed. American Tobacco Campus, once a crime-ridden stretch of abandoned cigarette factories, is now a sprawling expanse of outdoor cafés, green space, and startup offices. Sports-scheduling app maker Teamworks is around the corner from the massive American Underground co-working space, which houses more than 80 companies, including fintech startup LoanWell.

Raleigh's Warehouse District, another recently revitalized precinct, is home to Videri Chocolate Factory, as well as HQ Raleigh's 20,000-square-foot flagship co-working space. Lunchgoers hit the original Happy + Hale for ahi poke bowls and cold-pressed juices.

$96,173

Average salary of a software engineer here --17 percent below the national average.

Source: Glassdoor

$1.1 billion

Funding raised by North Carolina startups in 2017, up 36 percent from the previous year.

Source: Council for Entrepreneurial Development

$25.23

The average annual asking office rent per square foot.

Source: JLL's Q2 2018 Office Insight report on the Raleigh-Durham market

47 percent

Portion of the local talent pool with a bachelor's or higher degree.

Source: JLL's Q2 2018 Office Insight report on the Raleigh-Durham market

The Downtown Chapel Hill area, located at the northwest corner of the UNC campus, is home to a Google outpost and a handful of co-working spaces.

Talent Pipeline

The home to Duke, the University of North Carolina at Chapel Hill, and NC State offers a hyper-educated workforce (ahead of San Francisco, according to NerdWallet). All three schools have well-regarded entrepreneurship programs, as well as angel funds through which alumni can invest in current students' ventures. The area's startups are software-heavy, thanks in part to the schools' strong engineering and computer science studies, but there are plenty of exceptions, like beekeeping startup Bee Downtown, which Leigh- Kathryn Bonner founded while at NC State.

UNC-backed Launch Chapel Hill offers a 22-week accelerator program that accepts eight to 12 startups. Graduates include Seal the Seasons, which freezes and distributes farmers' crops.

Full Article HERE

Source: Inc.com

North Carolina’s Research Triangle Tops Our 2018 List Of The Best Places To Rent

Home to UNC Chapel Hill, N.C. State and Duke University, North Carolina’s Research Triangle region—including the cities of Raleigh, Durham and Chapel Hill—is best known for top notch universities, but students would be wise to consider sticking around after graduation. Reasonably priced apartments, coupled with strong population growth and ample employment opportunities, earn the area the top spot on our 2018 list of the best places to be a renter this year. 

Full Article HERE

Source: Forbes