Introduction:
Why is the Charlotte market a great place to invest? Find out the answer here! Charlotte’s steady, regulated growth shows she’s on an easy run for a marathoner!
Charlotte is one of the hottest real estate markets in the United States, continuing a multi-year pattern of developers and investors focusing on Sun Belt cities such as Charlotte for economic growth potential. According to the Charlotte Observer, Charlotte is an 18-hour magnet city, with its growing population and job market making it a popular migration destination for both people and businesses.
Charlotte, North Carolina, is the state’s most populous city and one of the country’s fastest-growing metro areas. Charlotte’s diverse economy and high quality of life explain why the property market is so hot. The Charlotte metro area is the country’s second-largest financial center, home to popular pro sports teams, and has one of the best year-round climates.
Charlotte’s steady growth makes it ideal for real estate investment
The statistics speak volumes about the Charlotte market’s enormous potential. According to 2017 Census Bureau data, the region is growing by more than 1,000 new people per week. By 2050, this expansion will add another 1.8 million individuals to the country’s present population, developing roughly a million new employment.
Charlotte’s steady, regulated growth shows she’s on an easy run for a marathoner. It also implies that this regional commercial hub is quickly becoming one of the top sites in the country to engage in private equity real estate.
Significant building activity surrounds Charlotte’s core business center. With Miami billionaire David Tepper’s record $2.2 billion deal to purchase the Carolina Panthers football franchise in June 2018, further activity is expected. New office skyscrapers will be anchored by four banks, while new residences and a 1,000-room hotel are being built directly close to the Panthers’ Bank of America Stadium.
Job Opportunities and Earning Power
Charlotte is the nation’s third-largest financial center, with the headquarters of Bank of America and a Wells Fargo branch, as well as a major participant in professional and business services spanning from tech-driven marketing to procurement and logistics. Duke Energy, the nation’s largest electric power holding business, is also an important Charlotte industry, thanks to its performance in electric utilities, natural gas, and renewables. Charlotte is also a supply chain home for the Southeast, including CSX and Norfolk Southern rail connections. The Charlotte Chamber of Commerce is home to 14 Fortune 1000 headquarters and other multinational firms.
While Charlotte’s overall job growth rate is 3 percent, several business sectors surpass that statistic, making the metropolitan area a demographic magnet.
Millennials are also coming to Charlotte because of its strong fundamentals, which allow them to optimize their earnings and quality of life. Charlotte ranked first in Business Insider’s assessment of where Millennials were moving last year and sixth in a list of the 25 best places for those under 35 regarding career prospects and wage strength. Charlotte has 27 percent more job openings than the national average, and the millennial income goes a long way given the city’s low cost of living.
Not surprisingly, Charlotte ranked 11th in terms of new inhabitants last year. According to CBRE, population growth will keep rental occupancy at around 95 percent. Moreover, despite Charlotte’s low cost of living, typical rents have risen by roughly 35% in the last five years. However, rent as a percentage of household income remains far lower than in considerably larger cities such as Boston, Chicago, Seattle, and Miami.
Natural Beauty and Urban Amenities
Charlotte has temperate weather, beautiful, tree-lined neighborhoods, numerous outdoor activities, well-ranked education systems, and over three dozen colleges and universities. Charlotte’s living and housing expenditures are also 2% and 3% cheaper than national norms, with the typical monthly rent being $902.
Charlotte’s excellent public transportation system is another significant advantage — and draw. The metropolitan area’s connection has increased by connecting its uptown financial hub to the city’s university and commercial areas. The Lynx light rail line extension westward to Charlotte Douglas airport has been approved for planning. It corresponds with rezoning up to 2.4 million square feet of industrial land near the Charlotte airport.
This year, a northern expansion of the Lynx light rail line opened, connecting Uptown to the University of North Carolina Charlotte campus. This addition will add to the significant growth in the University City neighborhood, anchored by UNC Charlotte’s 30,000 students, by allowing for more transit-oriented, mixed-use development.
One University Place just underwent a multimillion-dollar interior and exterior refurbishment by Origin. In the 1986 lakefront office building, the transformation provided move-in-ready, millennial-focused, collaborative workspaces. The destination is within a short walk of the light rail’s station, adding to its appeal for firms hoping to attract young talent from Uptown Charlotte, which is a 15-minute ride away.
In the same neighborhood, Red Ventures, a marketing technology startup, is investing $5 million in building upgrades and equipment at Origin’s Cambridge Corporate Center. The company aims to hire over 500 people in software development, information technology, business development, and sales.
But, in my opinion, the lifestyle offered by Charlotte commercial real estate is the primary cause of its rise. Charlotte boasts a diverse artistic presence in Noda and a busy entertainment scene in the South End. The Great Smoky Mountains and Charleston, South Carolina’s seaside towns, are a few hours away. Housing is cheap for millennials, and downsizing baby boomers, the two big demographics driving the real estate market, and the excellent educational system draws a qualified workforce.
These qualities, in my opinion, make Charlotte one of the top destinations in the country for multifamily, commercial and private equity real estate investment. Come join us!
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Come join us! Email me at mark@dolphinpi.us to find out more about our next real estate investment.