Saturday, December 17, 2016

7 Reasons to Invest in Charlotte!

Charlotte


I noticed Greystone Residential's ad in this month's Think Realty magazine.  Greystone is a  real estate development and investment company headquartered out of Troy, Michigan.
Greystone concentrates on a handful of markets, one of which is Charlotte.  Within their ad, they list the top 7 reasons to invest in Charlotte.  I appreciated these valuable pointers and want to share them with you.  Below is Greystone's list; I have expanded and supported their ideas below each point.

1. 💲 Second largest financial center in the US 

Bank of America and Wachovia both call Charlotte home.  It's always nice to have money around.

2.  🔨 Great job market

Greystone's article claims Charlotte has seen an average of 3.1% job growth over the last 5 years.  In Fannie Mae's "Multifamily-Metro-Outlook" document, they have the 2015-2016 job growth at 2.8%, but have concerns about jobs in finance.
"Although financial service industry jobs are a point of concern in the area, Charlotte has had solid job growth: in the year ending March 2016, the area’s job market grew 2.8 percent, compared to 2.0 percent nationally. With growth in recent years, Charlotte has recovered all the jobs it lost in the Great Recession. Forecasts indicate that the area will have well above average job growth through 2020, though near term volatility related to the financial industry is possible."
Forbes placed it #19 for "Best Places for Business and Careers."  Not bad!

3.  ✈ Perfect logistics hub

Charlotte International Airport is the 5th busiest airport in the nation and 6th busiest airport in the world, with over half a million flights coming and going a year.

4.  💰 High pay and low cost of living

According to PayScale, Charlotte's residential cost of living is 9% below the national average.  Depending on which website you visit, the median home sales price in 2016 is somewhere in the 170s, and median household income is around $53-55k.



5. Tight labor market

U.S. Bureau of Labor Statistics has Charlotte at an unemployment rate of 4.5%, just below the national average. In addition, Charlotte is forecasted to see an above average population growth.
"Q1 2016, the population expanded 1.9 percent, compared to 0.8 percent nationally.  CoStar forecasts that population growth through 2020 will be nearly triple the national average at 2.4 percent per year." - Fannie Mae 

6.  Location, location, location

Charlotte is highly desirable to companies because it is conveniently located near the northeast, southeast and midwest.  It's also an attraction to young people in surrounding cities and states looking for jobs, cash and a cultural environment.  For retirees, the weather is mild and it's easy to visit the grandkids.  According to the many reports and stats that I have read, Charlotte's demand will continue in an upward trend, making this the time to buy and/or hold CRE.

7.  🌞 Weather and lifestyle

Having been raised in Houston and relocating to Chicago for a 10 year stint after high school, I know the importance of good weather.  Being able to enjoy only 4 to 5 months out of the year is no way to live!  I moved to North Carolina for the beauty, convenience and weather, but mostly the weather.

courtesy of city-data.com


Let's recap and compare. Charlotte falls:

  • Above North Carolina's median salary and on-par with the nation's median salary
  • Above national job growth rate
  • Above national population growth
  • Below national unemployment rate
  • Below national median home sales prices
For Greystone Residential's full ad and article, pick up the Dec/Nov 2016 issue of Think Realty or visit their webpage: http://www.buildgreystone.com/charlotte---nc.html


As for the commercial real estate market, Loopnet's trend profile of Charlotte gives us a good idea.  This is year-over-year growth ending June 2016:

Sales Data Lease Data
Asking prices are ↑ Rents are ↑
Number of listings are ↓ Available units are ↑ for multifamily & office, ↓ for industrial & retail
Views are all ↑ except multifamily Views are ↓


Loopnet - Charlotte Market Trends

Charlotte's 2017 prediction?

UNC Charlotte's economist John Connaughton says:
"Positive economic growth in 2017 would represent the eighth consecutive year of economic growth for the North Carolina economy. While this is an impressive trend of growth, the size of that economic growth has been somewhat lacking. In fact, for most of the 21st century, both the U.S. and North Carolina economies have been unable to achieve an average 3.0 percent real GDP growth rate that had been fairly consistent since World War II.  The 2.5 percent real growth rate experienced over the 2014-2015 period was stronger than the recent past, but the slower growth expected in 2016 could signal a return to the slow growth pattern."
Full article here





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