spaces & places: 2016 regional development briefing

Welcome!

Aaron NelsonPresident & CEO

Chapel Hill-Carrboro Chamber of Commerce

Thank you, briefing sponsors!

René Hendrickson Real Estate

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Dwight Bassett Economic Development Officer

Town of Chapel Hill

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___Dwight Bassett,

Economic Development Officer

[share info…]

“No man ever steps in the same river twice, for it's

not the same river and he's not the same man.

You could not step twice into the same rivers; for

other waters are ever flowing on to you.”Heraclitus

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Approved

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Carolina Square> 300 Residential Units

> 159,000 SF Office

> 55,000 SF Retail

Glen Lennox> 1,500 Residential Units

> 600,000 SF Office

> 150,000 SF Retail

> 150 Hotel rooms

South Creek

> 600 Residential Units

> 600,000 SF Office/Civic

> 475,000 SF Retail

> 130 Hotel rooms

Ephesus-

Church/Fordham> 1,000 +/- Residential Units

> 350,000 +/- SF Office

> 250,000 +/- SF Retail

> 150 +/- Hotel rooms

Carraway Village(Eubanks Road)

> 400 Residential Units

> 100,000 SF Office

> 120,000 SF Retail

> 150+/- Hotel rooms

Hotel

Mixed-use

Mixed-use

Residential

415 W Franklin

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Commercial Development Strategy

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MISSION: Support opportunities to put Chapel

Hill’s people to work, and create economic prosperity for all, now and in the future.

TARGETS: Output of Medical School, Pharmacy

School (and research), Applied Sciences and Technology

1) Strengthen the Town-Gown Relationship

2) Work becomes part of The Life of The Town

3) Tell our Story

1) Strengthen the Town-Gown Relationship

For 200 years, this has been the place people go to college and then leave. The downtown hasbecome a place to dine, but not to shop or work. The town and the university need to coordinate their growth, so that this becomes one lively and diverse place.

2) Work becomes part of The Life of The Town

People want to start companies here, but there is not enough room for them to grow, especiallydowntown, where they can walk to coffee. Skilled and creative people need not only offices andlabs to design and make things, but workshops and studios as well.

3) Tell our Story

The name “Chapel Hill” is nationally recognized. To locals, this is still “The Village”, with stonewalls and the shade of stately trees that beckon for conversation. It offers something differentthan Boulder, Berkeley or Cambridge. For the post-doc looking to settle down, this can be theirnew hometown.

For Pride: Chapel Hill is nationally recognized as an intellectual center, but it lacks the local jobs and business that translate new ideas into new products and services that have impact on the world.

For Prosperity: More jobs and business will create community wealth and build the tax base.

For People: Recent graduates will be able to start their careers and families here, filling outthe middle of the generations.

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Market conditions

Office – 8-9% +/- vacancy(approximate 2.4 million SF)

Retail – 6% +/-vacancy(approximate 2. million SF)

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Room for growth!

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Marketing___

Follow us @CHEconDev

Tell our Story![ ]

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Market Demand

Office> In walkable environment

> Changing the regional development

perspective of Chapel Hill

> Up to 1,000,000 SF of demand

Retail>To meet growing demand of existing

businesses

> To capture more of our own demand (up to 1,000,000 SF by 2020)

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Mark Zimmerman Owner

RE/MAX Winning Edge

Places and SpacesThe Residential Real Estate Market

August 25, 2016

Mark Zimmerman

Broker/Owner - RE/MAX Winning Edge

Please note:

All data from Triangle Multiple Listing Service &

10K Research and Marketing

All data through July, 2016

County review, not cities

Focused on single family detached

Not multi-family (townhouse/condo)

No rentals/apartments

2016 - The Year that Just Keeps Giving

2016 builds on 2015 success

Momentum continues through 2nd quarter

Reaching or surpassing historic highs

Closed Sales Continue Steady Climb

YTD July:

● Orange

○ +9.0%

● Chatham

○ +9.0%

● Durham

○ +9.2%

Closed Sales - Closing in on Historic Peaks


Shortage of listings

Particularly in Durham

Multiple offers

Lower inventory at all price points

Month’s Supply of Homes for Sale

July:

● Orange

○ 4.6 months

○ -27.0%

● Chatham

○ 5.4 months

○ -8.5%

● Durham

○ 2.1 months

○ -27.6%

Month’s Supply by Price Point - Orange

July:

● $459,000+

○ 7.3 months

○ -33.0%

● $290,000 - $459,000

○ 3.1 months

○ -43.6%

● $179,000 - $289,000

○ 2.8 months

○ -30.0%

Month’s Supply by Price Point - Chatham

July:

● $475,000+

○ 11.3 months

○ -4.2%

● $325,000 - $475,000

○ 4.3 months

○ -10.4%

● $204,000 - $325,000

○ 1.7 months

○ -52.8%

Month’s Supply by Price Point - Durham

July:

● $246,000+

○ 3.3 months

○ -19.5%

● $175,000 - $246,000

○ 1.5 months

○ -25.0%

● $125,000 - $174,000

○ 1.3 months

○ -45.8%


Limited Supply + High Demand =

Increasing prices

It’s a Seller’s Market

Frustrated Buyers

Orange reaches milestone

Chatham & Durham = more price value

Average Sales Price

12 months thru July:

● Orange

○ $401,063

○ +5.2%

● Chatham

○ $393,573

○ +8.1%

● Durham

○ $245,470

○ +8.7%

Average Sales Price per Square Foot


● Orange

○ $155

○ +4.7%

● Chatham

○ $143

○ +5.9%

● Durham

○ $117

○ +9.3%

2016 - How has Market Reacted?

Durham & Chatham adding new homes

Orange living off existing homes

New construction helps keep older home

prices more affordable

New Construction Listings


● Orange

○ 177

○ +9.6%

● Chatham

○ 588

○ +15.7%

● Durham

○ 600

○ +42.5%

New vs Resale - Price per Square Foot


● Orange

○ $160 vs $154

○ -3.7%

● Chatham

○ $151 vs $137

○ -9.2%

● Durham

○ $142 vs $113

○ -20.4%


Sales up

Inventory down

Prices up

Chatham & Durham responding to demand

Orange staying the course

Kyle TouchstonePresident

Chatham Economic Development Corporation

Chatham CountySPACES & PLACES: 2016 REGIONAL GROWTH

AND DEVELOPMENT BRIEFING

Chatham County

• Overview

• Governors Village

• 15-501 Corridor

• Briar Chapel & Veranda

• Chatham Park

• Pittsboro

OverviewSPACES & PLACES: 2016 REGIONAL GROWTH

AND DEVELOPMENT BRIEFING

Who We Are

Kyle TouchstonePresident

Jamie VaughnVice President

Ben TownsendBusiness Services

Manager

Alyssa ByrdCommunications

Specialist

About Us

Chatham Economic Development Corporation (EDC) is the lead economic

development agency for Chatham County. The EDC is a 501(c)3 economic

development non-profit that provides support to businesses throughout the county

and markets Chatham County as the preferred location for emerging growth

companies.

Economic Indicators

• Population: 70,928 (July 2015)

◦ Fastest growing between 2014-2015

• Labor Force: 33,331 (June 2016)

• Jobs: 14,179 (Q1 2016)

• Unemployment: 4.4% (June 2016)

◦ 4th lowest in NC

• Average Weekly Wage: $643.27 (Q1 2016)

◦ State Average: $927.78

Population Growth 2010-2015

13.7%

11.7% 11.5%

5.7%

Wake Chatham Durham Orange

Governors VillageSPACES & PLACES: 2016 REGIONAL GROWTH AND DEVELOPMENT BRIEFING

The Commons at Governors Village

The Bold Building

15-501 CorridorSPACES & PLACES: 2016 REGIONAL GROWTH AND DEVELOPMENT BRIEFING

ExtraSpace Storage

2015 2016

North Chatham Village

2011

2015 2016

Formerly Cole Park Plaza


2015 2016


2015 2016

2011

Polks Village

Briar Chapel & VerandaSPACES & PLACES: 2016 REGIONAL GROWTH AND DEVELOPMENT BRIEFING

Chatham ParkSPACES & PLACES: 2016 REGIONAL GROWTH AND DEVELOPMENT BRIEFING

• 7,100+ acre mixed-use development

• 22,000 residential units (60,000 people)

• 22 million square feet of non-residential development◦ Targeted businesses:

Technology, biotech, clean tech, and medicine

Bellemont Station

2015 2016

Bellemont Pointe

Photo: Town of Pittsboro2015 2016

Chatham County Agriculture and Conference Center

Connect

Kyle TouchstonePresident, Chatham EDC

[email protected]

919-542-8274

www.chathamedc.org

Laurie PaolicelliExecutive Director

Chapel Hill/Orange County Visitors Bureau

Spaces & Places

Orange County Travel and Tourism

August 2016

Name City Rooms Open Date

Holiday Inn Express Hillsborough 83 April 1997

Microtel Inn & Suites by Hillsborough 70 May 2000

Hampton Inn & Suites Carrboro 142 August 2013

Autograph Collection The Siena Hotel Chapel Hill 79 October 1987

University Inn Chapel Hill 132 June 1966

Days Inn Chapel Hill 50 January 1999

Quality Inn Chapel Hill 119 January 1987

Residence Inn Chapel Hill 108 January 2007

Curio Collection Franklin Hotel Chapel Hill 67 January 2007

The Carolina Inn Chapel Hill 185 June 1924

Aloft Hotel Chapel Hill 130 April 2010

Courtyard Chapel Hill 169 September 2004

Sheraton Chapel Hill 168 June 1980

TOTAL: 13 Hotels 1502

358 new rooms (21% increase in supply)

Hyatt Place 110 Rooms Chapel Hill 5 Stories

AC By Marriot 123 Rooms Chapel Hill 4 stories

Hilton Garden Inn 125 Room10,000 sq. feet meeting space

Carrboro 5 stories

Hilto

n G

ard

en Inn C

arr

boro

Open Date: 2nd Quarter 201910,000 sq. feet meeting space150 rooms

AC

By M

arr

iott

214 Rosemary

Open Date:

October 2017

Excavation complete

November 2016

AC by Marriott Rosemary Street

Hyatt

Pla

ce S

outh

ern

Villa

ge

110-room hotel

1,700 square feet

of meeting space

1,680 square foot

third-floor outdoor

function space.

Hillsborough

• Sportsplex: • Sportsplex hosted 553,000 people in 2015.• Consistently ranks in top 5 visitor destinations • Opportunity for overnight accommodations• Near growing Hillsborough assets • SOCCER:• Soccer.com has 5 full size fields that can be

reconfigured for many more smaller fields for younger teams.

• OC may be adding anywhere from 2-4 new fields (two if they are synthetic turf, four if they are not).

•

Why Hotel Investment Here?• A typical hotel investor, when evaluating this market, looks for both

specific property and comp set evidence of hotel performance levels approximating the following:

• Full service hotels:Occupancy: 70% or higherADR: $150 or higherRevPAR: $105 or higher

•Select/focused service hotels:Occupancy: 70% or higherADR: $115 or higher

• RevPAR: $80 or higher

• RevPAR is the key indicator here.

Orange County Tourism Focus

• The entry of these new rooms coupled with slower growth on the demand side will continue to create a relatively uncertain transient market landscape during 2017 as the market continues to absorb the new inventory.

• The focus of the Chapel Hill/Orange County Visitors Bureau is two-fold:▫ Marketing the assets of our communities

▫ Feasibility study to look at new demand generators

Durham and Wake Counties

• Durham currently has 8,712 hotel rooms--21% growth in supply in 2017 to 9,135 rooms.

• Wake County has 15,500 hotel rooms and will see 11% growth in 2017 to 17,601 rooms.

• Durham:

• November 2014 the 128-room Hilton Garden Inn

at Medical Center opened, followed by 125-room

21c Museum Hotel & 54-room Durham Hotel.

• Starwood opened the 134-room Aloft Hotel at

DPAC and Marriott opened the 147-room all

suites Residence Inn McPherson/Medical Center.

• In addition to these 588 new rooms, the following

properties will add an additional 423 rooms.▫ JB Duke Hotel (January 2017) 198 rooms

▫ Graduate Hotel (Spring 2017) 150 rooms

▫ Unscripted Hotel (April 2017) 75 rooms

Economic Development Panelists

Dwight BassettEconomic Development Officer

Town of Chapel Hill

Steve Brantley Director of Economic

DevelopmentOrange County

Annette StoneEcon. & Community Development

Director Town of Carrboro

Kyle Touchstone President & CEO

Chatham Economic Development Corporation

Upcoming Events

Face TimeSept. 15, 5:30-7:30 p.m.Rizzo Conference Center

Performance Golf Classic Oct. 10, 8:30 a.m.-5 p.m.Chapel Hill Country Club

Economic Outlook BriefingOct. 20, 8-10 a.m.

Sheraton Chapel Hill Hotel

PRIMETIME Business ExpoNov. 10,

UNC Friday Center

www.carolinachamber.org/events

Explore the latest local, state and national trends in our economy. Visit carolinachamber.org/events for more information!

Economic Outlook Briefing7:30-9:30 a.m., Thursday, Oct. 20 at the Sheraton Chapel Hill