Report: Raleigh real estate market ranks among top value for investors

The Triangle Business Journal just gave us something else to cheer about. Here’s the story on Raleigh’s favorable investment market.

The Raleigh-Durham area ranks as one of the best value propositions for investors of commercial real estate in the U.S., according to the latest Situs RERC Value vs. Price Index, especially for office, industrial and apartment properties.

The Situs report for the first quarter ranks Raleigh at No. 1 for industrial property value among the 26 secondary markets surveyed in the report.

The Triangle also ranked at No. 2 for office property value, No. 3 for apartment property value and No. 11 for retail property value. The region bested Charlotte, Atlanta, Austin and Nashville in every single category except retail.

So far in 2016, investors of commercial real estate properties in the Triangle have bought and sold nearly $1.36 billion in commercial properties in the region.

Earlier Situs reports did not break down the list by primary, secondary or tertiary market as the first quarter report did, but the Raleigh market had previously ranked at No. 9 out of all 48 markets in the third quarter report.

The report is designed to measure the current fundamentals of a metro area compared to the current pricing of real estate properties based on recent sales transaction data and cap rates. Higher ranking metros have relatively low prices and strong fundamentals related to job creation, transaction volume and population growth. The lower ranking metros have higher pricing levels and poorer fundamentals related to job growth and transaction volume.

Before and After

Raleigh, NC (March 11, 2016) — Last October The Lewis Group/CORFAC International announced that the firm had executed a five-year lease on behalf of McCormick Paints at the former Fred’s Beds showroom location on Western Blvd.

Locals often referred to Freds Beds as “the punch buggy store” because a yellow VW was forever parked in front of the store. Blog readers can scroll down to see a picture of the former retail outlet. McCormick Paints is now open for business!

The Lewis Group/CORFAC International Represents Fairway Media Group in Acquisition of Raleigh Office-Flex Building

Raleigh, NC (January 12, 2016)W. Michael (Mike) Lewis, CCIM, SIOR and Principal of The Lewis Group/CORFAC International announced that he has represented Fairway Media Group LLC in the acquisition of $2,295,000 office-flex facility in Raleigh.

The seller in the deal was Schmalz Inc. Fairway Media is an outdoor media and billboard advertising company. Fairway Media has leased back the facility to Schmalz until Spring of 2016 when Fairway Media, based Roswell, GA, plans to take occupancy.

Fairway Media purchased a 19,742-square-foot, two-story building on a 1.79-acre lot located at 5200 Atlantic Avenue, Raleigh. The fully conditioned building has offices on the top floor while the ground level has assembly space, a loading dock, ramp and drive-in door.

Schmalz Inc. is part of the international Schmalz-Group. According to its website, the company is a leader in vacuum technology in automation, handling and clamping applications and serves a host of industries such as aerospace, automotive, chemicals/pharmaceuticals, glass, plastics, packaging and solar, among others.

Our List Happy Culture Has Produced a Couple More

Hitchhiking on the Forbes ranking of Raleigh as the second-fastest city for tech-job creation, Wake County and Durham County were recently ranked #4 and #10 respectively as the most digitally advanced counties out of 54 U.S. counties surveyed for Government Technology magazine (The 2015 Digital Counties Survey).

Deep in the weeds, totally tech wonky even, let’s just say that the folks reading Government Technology probably don’t worry themselves too much about what goes into the pages of Garden & Gun Magazine, and they’ve probably never seen a live NASCAR race in their lives!

First, the Digital Counties Survey is trying to identify “adaptive IT leaders, collaborators and arbiters of the public trust.” What the heck does that mean? And no, we are not deliberately being obtuse! (Remember when “Andy” in The Shawshank Redemption (starring Tim Robbins and Morgan Freeman) accused the warden for being obtuse – boy did he suffer the consequences for that!)

This will help you understand the digitally advanced recognition:

Wake County was recognized for “its open-data portal that features GIS, permitting and restaurant inspections, along with its regional collaboration on E911 services.”

Durham County rounded out the Top 10 for “its open-data collaboration, its IT governance committee and its upcoming move to the cloud through Microsoft 365.”

These tech trends are all positive developments for our region – no doubt. But frankly we are real estate people. We use technology every day. We get it. But this list is really pretty wonky. And as they say, we are VISUAL People too!

Visually, we got behind this story much faster (which like the digitally advanced story, appeared in the Triangle Business Journal first).

While Wake and Durham counties were busy being recognized for its IT infrastructure, the Raleigh area nabbed a shout out from the New York-based website, Tabelog, which published a list of the “10 best restaurants in the Raleigh area for getting a barbecue fix.”

Pulled Pork
That’s right. It’s a barbequed pulled pork sandwich.

Tabelog, you may wonder, is a “lively online community for Foodies, by Foodies.”

Here are the blog’s top 10 Raleigh-area picks for barbecue (in no particular order), according to Tabelog:

  • Driftwood Southern Kitchen
  • Chick-N-Que (Rolesville)
  • Relish Cafe & Bar
  • Kamado Grill
  • Q Shack
  • Clyde Cooper’s Barbecue
  • Ole Time Barbecue
  • The Pit Authentic BBQ
  • Big Al’s BBQ
  • Mel’s Barbecue

Which gets us back to lists. Who let David Letterman retire, anyway?

Between the digitally advanced list and the BBQ fix list, we’re thinking there must be a Top 10 List for Everything – or the Top 10 List of Lists!

Well, there isn’t. We looked it up. On the Internet of course. We found things like “The Best Top 10 Lists by year, The Top 10s by category (animals, education, movies, that sort of thing). But the Top 10 List of Lists is still open for invention.

Pass the napkins, please.

If Yogi Berra Was Still Making Quips Today He Would Have Something to Say About Raleigh

Having just posted “The Accolades for Raleigh Keep Pouring In,” there is more. And channeling Yogi, who once famously said about someplace: “Nobody goes there anymore; it’s too popular.”

And so it is that Raleigh just got some more shout outs.

California-based employment finder Glassdoor recently issued a report that ranks Raleigh as the No. 1 job market in the U.S. Its 25 Best Cities for Jobs report was based on three factors: hiring opportunity, cost of living and job satisfaction. Data sources included the U.S. Office of Management & Budget, Zillow and Glassdoor’s salary data research and company reviews.

Kansas City MO was second, Oklahoma City third, Austin fourth and Seattle fifth.

In a separate report, CoreLogic has published data showing Raleigh as the second most-active market for new home sales in the U.S., as a percentage of sales. Based on activity during 12 previous months ending January of this year, new home sales accounted for 21 percent of all the homes sold in that 12-month period. Rollout the “Builders Welcome” mat!

The Accolades for the Raleigh Triangle Keep Pouring In!

Raleigh was recently ranked as the 2nd-best city for tech job creation by Forbes magazine.

Just days earlier fDi (weird spelling but correct!), a division of Financial Times, ranked Raleigh #1 on the list of top mid-size “American cities of the future.”

This shout out came in about the same time that NerdWallet, a website that focuses on personal finances (but not just for nerds!), cited Durham as one of “America’s Greenest Cities.”

Collectively, it makes us wonder why these news and information sources apparently have all this extra time on their hands, to make up lists and rankings, instead of reporting and researching the news. We digress.

Collectively, what the accolades mean is what those of us who live and work here already know; the Triangle is a great place to work, live and play. And our future only seems brighter.

Recapping the above-mentioned accolades:
Forbes gave Raleigh a score of 39 percent, representing the percentage increase in new STEM-related jobs in the past decade (Science, Technology, Engineering and Mathematics). Austin, Texas was ranked first, while San Jose, California, came in third. It’s always nice to beat Silicon Valley – at anything!

Financial Times gave the region the highest ranking for a mid-size city based on multiple factors: economic potential, human capital and lifestyle, cost effectiveness, connectivity and business friendliness. You might be interested to know that New York City was #1 for a Major city, Vancouver, Canada got the nod for Large city, Sunnyvale, CA was first among Small cities and Greenville, SC ranked first among Micro cities.

NerdWallet took a look at 150 U.S. cities and analyzed how they compared in terms of environmental quality/pollution, transportation, energy sources and housing density. Durham ranked 19 and was the only North Carolina city in the top 25.

Welcome to The Lewis Group/CORFAC International Blog!

We didn’t decide to launch our blog on Earth Day because it was Earth Day – even though it is pretty cool, when you think about it, to celebrate our only habitable planet. Rather, the date was a coincidence.

We launched the blog to coincide with our new company website. The website is built with the latest technology, called ‘responsive design,’ so that the screen adapts to the device from which the website is being viewed, beginning with hand-held phones. Our site navigates beautifully on a phone, as well as an iPad or full-size monitor.

We implemented the new site and had it built by a team of professionals to not only refresh our main marketing platform, but to address the new world of mobility. Our marketing advisors tell us that more than half of all web searches are now conducted on mobile phones, and within a couple of years, mobile search is expected to exceed 70% of all searches, regardless of the browser. And here is a little secret that should motivate everyone to rebuild their websites based on ‘responsive design”: Google announced that “mobile friendliness” would affect a company’s search rankings (you know, “search engine optimization.”) Which means your company website is less likely to get on page 1 of relevant searches, if your site is not mobile friendly.

We hope you check our blog periodically for useful news, information and short stories on the Raleigh Triangle, and particularly on doing business here in this great community. And because of our affiliation with SIOR, CCIM and CORFAC International, from time-to-time we might write about something from beyond the state line, if it is relevant to our world and the work we do in the commercial real estate services arena.