Rose Report: Summer 2022 - Are markets cooling off?

The Rose Report

Summer | 2022

Blueberries in season at Lake Norman

Celebrating 30 years!

Rose Associates is excited to share that July 2022 marks our 30th anniversary of providing real estate and land use strategy and economic development consulting for our private, public and institutional clients. We are grateful for all of you.

We have seen a lot during our three decades, and as we look at the current economic environment, we are reminded of how markets run in cycles.

The economy, along with the weather, has been running hot. However, the economy is headed for a slowdown, thanks to the Federal Reserve's recent raising of interest rates which are designed to cool inflation. As the economy continues to slow those involved in lending or borrowing money and construction will have to adjust to impacts from a rising interest rate environment, and other trends. And this could lead to opportunities for value buys for cash buyers and equity investors.

Many of the next generation of real estate and economic development professionals have never experienced a prolonged recession. The Covid-19 recession in 2020 lasted two months, making it the shortest recession in U.S. history, according to the National Bureau of Economic Research. Prior to Covid-19, the most recent recession was the Great Recession, which lasted 1.5 years and ended October 2009. It is important that young professionals get the skills needed to endure economic cycles. This includes continued education, including those who confer professional designations, to keep up with industry trends and staying connected to local and national professional groups.

The notion of resiliency for markets and economies also rings true for professionals as they weather these cycles.

-Kathleen

In this episode of Around the Lake, Lake Norman Chamber of Commerce President and CEO William Russell and Rose Associates President and CEO, Kathleen Rose talk with Justin Dionne, Executive Director of the Cain Center for the Arts and Cornelius Assistant Town Manager Wayne Herron as they chat about Cornelius' growing downtown.

Giving Back

Kathleen Rose recently served on an ULI advisory services panel in Biloxi, Mississippi. The all-volunteer panel assisted Tradition, a 4,900-acre master planned community, with creating a strategy for moving forward. Go here to learn more about ULI's advisory services.

News and Events

Kathleen Rose contributed to this article in Forbes about the emerging trend of agri hoods. Agri hoods are residential neighborhoods specially designed to integrate farming or gardening into the lifestyle. Think a working farm or farm-to-table living. In the article, Rose comments on how Covid-19 accelerated the move away from urban environments to more suburban and rural communities.

Examples in North Carolina include:

Olivette Riverside Community & Farm in Asheville, NC
Wetrock Farm in Durham, NC
Fearrington Village in Pittsboro, NC

Hot off the presses

The 2022-23 Top Ten Issues Affecting Real Estate® is finished. Kathleen Rose served as the Vice Chair of External Affairs for CRE, which confers this annual report. Look for the report which dropped yesterday on CRE's website.

Congratulations to Kathleen Rose for receiving a Life Membership from the Certified Commercial Investment Member (CCIM) Institute. Rose went through an application process and was approved this spring by CCIM.

"I am thrilled and honored to get this Life Membership," she said. “(It’s) hard to believe it has been over three decades of holding the CCIM designation. Through many market cycles, the fundamentals endure. Still proud as ever of this designation and organization and all of the wonderful and inspiring professionals in it, many of whom have become my dearest friends and colleagues.

Rose is also a current active member of CRCBR, CCIM, CRE and ULI.

Advisory Project Updates

Rose Associates will be teamed with a number of strategic partners for the following recently awarded projects, which kickoff this summer:

Monroe, NC - Downtown Plan (McAdams)

Clayton, NC - Downtown Plan (McAdams)

Iredell County, NC - Comprehensive Plan (Clarion)

Rose Associates looks forward to starting the corridor study for US 70 West Corridor in Orange County soon. Working with VHB, the Rose team will consider transportation and real estate impacts from the region's continued growth.

Luminaries - A Conversation with Cindy Chandler

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Luminaries – Inspired conversation with real estate investment and economic development leaders

Next up on Luminaries is a conversation with Cindy Chandler, a specialist in investment real estate and strategic planning. Cindy has more than 30 years of experience in real estate and owns a consulting and training company, The Chandler Group. Watch the conversation on this Zoom recording. You'll need to enter this password: 1526yk+@

Lake Norman Commercial Real Estate Updates

Rose Associates' commercial brokerage division recently completed advisory work for the owners of 630 Davidson Gateway Drive a 10,700 +/- SF office building in Davidson at exit 30 off I-77.

SOLD!!

The Rose Team advised the owners in the repositioning of this asset,

including subdividing the building into four condominium units and selling the following units:

Suite 250, which occupies the entire top floor, sold within two weeks and closed for $1.7 million. The Rose team worked with Chandler Knox of Park Commercial Real Estate, who brought the buyer.

Suite 150, an executive office suite, sold within 48 hours of being put on the market to an investment buyer, with a closing price of $550,000. The new owner will continue to operate the executive suite. The seller will relocate to the first floor and remaining units will be owner occupied.

Need assistance in evaluating, leasing or selling your assets? contact Daniel Bellot at (704) 896-0094 or by email.

Commercial Brokerage Services:

Investments (Buy/Sell)
Leasing
Site Selection/Entitlements
Construction/Tenant Upfit