Do You Need a Commercial Real Estate Broker to Sell Your Land?

Yep, You DO Need a North Carolina Commercial Real Estate Broker to Sell Your Land!

Commercial land transactions that did not end well are a leading contributor to the use of error and omissions insurance claims!  There are so many variables in a land transaction that it pays to have someone experienced leading, guiding, educating and closing the sale for you.  In the state of North Carolina we have seen far too many agents not educated in the potential intricacies associated with the purchase or sale of land.  Often times the broker is a residential only agent that see dollar signs in front of them.  We all understand this and many have been down this road.  Heck, we know great land brokers today that once started that way and came through unscathed.  But we also know brokers that have gotten in over their heads and ended up regretting the fact that they attempted.  In many cases the client just moved on and a relationship was damaged.  Often times the Broker has waited too long and the damage has been done.  In which case, hopefully the Broker has good E&O insurance.

Land? Help me sell it!

Of course we want to determine the highest and best use of the property in question.  But there are so many questions to be asked!  Does the land have access to public utilities?  Who manages those utilities?  Are they onsite?  Which utilities?  How far from the subject property are the water main taps?  Does the water line need to be extended?  Are we are on a well?  Commercial septic?  Private septic?  Ingress and egress?  What will the municipality require?  How is the topography?  Are there wetlands?  What is the current zoning?  What is the tenor of the municipality regarding rezoning?  Special use permit needed?  What are the setbacks?  Do you know about any upcoming road changes?  What is DOT requiring?  Turning lanes?  Road widening?  Traffic signals?  Will you need curb and gutter?  Of course many of these questions are more about the end user developing the land if indeed the highest and best use is to develop it for commercial or residential purposes.  What about the things like the timber?  Is the land being used or leased for agricultural purposes?  Do you own the surface rights only?  Do you own all of the mineral rights?  Is any of the land in a floodplain?  Will it perk?  What about the impact of neighboring tracts?  Has anyone done a Phase I environmental study?  Is there rock on the land?  Does the property need to be annexed? Are there cemeteries on the land?  Are they of historical significance?  Is there historical significance of any kind on the property?  Easements and right of ways – have any been granted?

Topo

We recently sold and closed on a tract of land that experienced a delay in the process due to the fact that there was a small old (barely can find it) cemetery on the property.  When the state took a look they recommended that the state historical and anthropology department take a closer look.  For the next 30 days, while the Seller and Buyer waited anxiously, the anthropologists worked the soil to determine if there was additional historical significance.  Thankfully for us, we are now closed.  It is the unexpected contingencies that can cause stress if the buyer or seller are not prepared in advance.

Do not be blown away by Big Brokerages and/or Big Named agents.  While they may be the answer you are looking for and be a great fit, they may not be?  Ask them about the things above.  Ask them if they have ever sold any land and how those transactions went.  Ask them about the various contingencies that may present themselves.  The pint here is.  Find someone that will put the time in to “walk the land” and get to know it.  Someone that will help identify the various Highest and Best Uses.  Find someone with “reach” to investors and and users alike.  Someone that wants to list AND sell your property.  Not just list it.

Mineral Rights

Mineral Rights versus Surface Rights

If you have commercial real estate needs, please contact our team here at Kima Commercial @ KW Commercial.  Our team is ready to assist you in the pursuit of your real estate needs.

  • Raleigh commercial real estate  
  • Wake Forest commercial real estate 
  • Cary commercial real estate
  • Apex commercial real estate
  • Rolesville commercial real estate
  • Fuquay Varina commercial real estate
  • Morrisville commercial real estate
  • Garner commercial real estate
  • Holly Springs commercial real estate
  • Wendell commercial real estate
  • Zebulon commercial real estate
  • Youngsville commercial real estate

 

Raleigh’s RTP – Live, Work, Play

Triangle Commercial Bits and Pieces…

RTP Getting New Mixed Use Development

The largest research park in America is changing things.  Wait, that’s not right, America is changing things for the largest research park.  A new concept mixed use development is hitting the park!  Durham, NC is welcoming Beacon Properties Group and the mixed use development that will lay right along the busy 15-501 corridor looking to capitalize on new restaurants, variety of office space, hotel(s), and apartments.  It will be a walkable mixed us district and the first of it’s kind in the area!  Multifamily continues to expand in the Triangle market.  Just this week there are several on planning board agendas throughout the region including one on Rogers Branch in Wake Forest, NC.

North Carolina continues to grow quickly and remains on the top or near the top of many lists of best places to live and work!  This is a reflection of that very thing.

RTP Durham

View of RTP from the south

Featuring 57,000 square feet of retail and 25,200 square feet of office along with 17,000 square feet for restaurants and 300 apartment units, the project name, Oakridge will have major impact in our market.  The first of several?  We will see.

DOWNTOWN Raleigh By the Numbers….

While residential builders are helping change the face of the market near downtown Raleigh, it is the commercial impact that truly will drive the traffic to these homes!  What came first?  Chicken?  Egg?  Smoke?  Fire?   Residential?  Commercial?  Twenty nineteen has been a good year for Raleigh.  Hemp stores, cocktail lounges, new restaurants, new office space, etc…..  Here it is by the numbers according to the TBJ.

37 – Number of businesses closed since Jan 2018.

64 – Number of new businesses since Jan 2018.

15 – Number of storefronts closed in 2019.

20 – Number of new storefronts in 2019.  (We call that growth)

Triangle Rental Rates Up

The second quarter showed a boost in Triangle area office rental rates.  With the expansion of local businesses and the growth of outside companies coming in to the market, it appears that vacancy rates continue their decline.  Average Class A office rental rates climbed in the second quarter to $29 per square foot.  That is nearly a 40% increase from earlier in 2019.  Rates were holding steady over the previous year as well.  Again, we call this growth.  The economy continues to flourish!  Class A rates exceeded $32 per square foot in submarkets like downtown Durham, Six Forks/Falls of Neuse, and Raleigh.  Where would you expect the first over $40 per square foot to be recorded??  Yep, you guessed it, Kane Realty announced earlier that Tower IV at North Hills hit $41.50.

Trending up.  What goes up must come down…right?  Not in the near future experts say.  There are several proposed projects in downtown (remember the smoke versus fire thing earlier in this post?) that are likely to ask similar rental rates.

By the Numbers: 

7.5% = Class A vacancy rate across the region

3.1% = Class A vacancy rate in downtown Raleigh

Massive Development Project – Johnston County

Whew, this one took some time.  After a year plus of preparation, planning, designing, talking, drinking coffee, more talking, more planning…you get the idea…a new 470 plus acre mixed-use development in Johnston County has officially begun construction.

A 2.8 Million square foot project that will encompass the land running from exits 97 and 98 on I-95 near Selma.  Retail?  You want retail?  Okay, this feature a massive amount fo retail, restaurant, office medical space, hotels, senior living, residential development etc….A total of 1 Million square feet will be created.  Wow!  This isn’t your parent’s Johnston County!!!

Locals will enjoy a farmer’s market, farm to table dining options and other ways to make the residents and workers feel “grounded”.

 

What Are You Looking For?

Our team here at Kima Commercial would love to earn your business.  Whether you need land to build commercial space on, land for residential development, office, industrial, leasing, etc… our team stands ready and welcomes your business.  Our partners are all encompassing.  In other words there isn’t a commercial real estate team member we cannot bring to the table for you.  Meaning if you need a reputable commercial builder to build or do an upfit or just quote one for you, civil engineers, architects, inspectors, designers, etc…we can help.  Please feel free to visit us at one of our two offices.  We currently run our day to day operations for our commercial business out of the Brier Creek location in Raleigh and also have an office in Wake Forest.  We have sold all across the state of North Carolina and have resources across the country.

Triangle Continues to Attract Major Commercial Players

$52.35M SALE SHOWS CONTINUED INTEREST IN TRIANGLE MARKET

W.P. Carey Inc. recently paid $52.35 million for a large office building located well at 3900 Paramount Parkway in Morrisville, NC.  W.P. Carey, a net lease real estate investment trust…one of the largest in the country…acquired the significant property in Morrisville proving that the entire Triangle region continues to pace and attract investment from major players from other parts of the country.  Currently the property is home to Pharmaceutical Product Development Inc.  Headquartered in Wilmington, NC they are a player in the research healthcare provider market.

Built in 1998, at time of sale the building was had an assessed value in the $29 million dollar range.  Featuring 224,880 square feet inside, the land had a value of $2.4 million.

3900 Paramount Parkway – Morrisville, NC

Legacy @ Brier Creek Sells For $34.1 Million

Legacy at Brier Creek celebrated a one year birthdate recently with a successful sale.  Heritage Properties Inc. sold the fully leased building to a company owned by insurer Zurich North America.  It appears to be a smart purchase by the Zurich owned company as there remains space to add a second building.  The land that the building sits on…nine acres…is nicely situated on the lot facing Brier Creek Parkway.

The $34.1 million dollar deal is just another example of foreign and out of state investor money coming to the Triangle.  The $28+ per foot average lease rate puts Legacy at or near the top of the market that extends down Glenwood Avenue in Raleigh.  Fully leased with excellent tenants that include yours truly along with Keller Williams Preferred Realty, Infosys (a tech consulting services company) and IRS and Sage Therapeutics among others.

Heritage Properties intends to reinvest the proceeds of the sale back into this market and will continue to grow it’s portfolio.

 

Kima Commercial, Llc. is poised to assist you with all of your real estate needs.

Why Companies Are Choosing The Triangle

Why Companies Are Choosing The Triangle

My wife moved here three years ago and me following suit shortly one year after. Why? She got accepted into the #1 pharmacy school in the nation. (UNC Eshelman School of Pharmacy) The triangle of North Carolina (Raleigh, Durham, Chapel Hill) is known for its outstanding academics and therefore, good workers. Duke is ranked in the top ten, Chapel Hill following in the top thirty and NC State rounding out the top 100 (81). Not only do these colleges rank high in undergrad education but they also offer some of the best medical practices in the nation. Duke overall ranks number 17 and UNC is also in the rankings. With being such an educated market, it also means companies want to choose the triangle and the high IQ that is right in their backyard.

why do companies move to the triangle

There is also an excitement around the triangle of cities being rated as top places to live. Raleigh/Durham ranks #13 on the best places to live thanks to affordability and the job market created around a very green and active community that continues to produce more outside activities every year. For example, hop on the newly completed American Tobacco Trail and go from Apex all the way, 22.6 miles later through Cary, finishing in downtown Durham for some great food at the many local restaurants. Another reason the triangle is so special is the access to having it both ways in terms of outdoor activities. Mountains and beach are both within distance of a days trip. A drive to the beach is an accessible 130 miles and to the mountains in just over a couple hours for hiking, skiing, and adventure. During these drives stop along the way to compete in a plethora of events from half ironman triathlons to 100 mile bike races through the Appalachian Mountains near Asheville. Or you could just stop for a casual beer from one of the many towns that have their own breweries or wineries! With so many things to do it is no doubt that appreciation will keep rising in this area.

Appreciation has grown as much as 9 percent in Raleigh for commercial space into the year of 2018. Reasoning behind that would be because vacancies are below 5 percent and the market has absorbed 1.3 million sq. feet of commercial space in 2018. Durham is falling behind those numbers at 18 percent for vacancies and absorption is in the negative. Housing is following the same trend line with home prices from 2016 to 2017 rising 7.5 percent in Raleigh and only a 2 month supply of housing. These numbers are above the national average and continue to rise month by month.

These spaces are being filled up with tech, healthcare, and financial companies. Including the possibility and excitement of both Apple and Amazon. Amazon has announced that the triangle made the short list of 20 out of hundreds. Meaning that with the vacancies so low in Raleigh that the Durham market could soon turn for the better and close the gap in vacancies and absorption. Both cities are located close to a thriving airport that is adding more flights monthly from domestic to now international to help ease the travelers wanting to go to Europe.

With markets tightening up and driving up prices, you need a strong commercial team behind you when finding your next space. With over 40 years experience on the Kima Commercial team. Whether it is finding a space to fill or a lot to build on. Our rounded team can help you from start to finish.

To learn more about what’s happening in the commercial real estate world in the Raleigh, Durham and North Carolina markets do not hesitate to contact us at Kima Commercial, LLC.  Our team of Brokers, REALTORS® and staff are here to meet your real estate needs.

https://www.usnews.com/best-colleges/duke-university-2920
http://www.triangletrails.org/pdfs/OBSERVERMAP.pdf

We look forward to working with you!

Economic Update

Economic Update

Commercial real estate is inextricably tied to economic factors, both local and beyond. Locally, it is clear things are still booming: the Raleigh-Durham area has been abuzz with news of Amazon and Apple potentially locating new offices here; a quick survey of local business journals and newspapers shows company after company bringing jobs to the area; awards for economic growth and innovation abound; and the crowds of people moving into the area have yet to subside.

Screen Shot 2018-08-05 at 3.00.47 PMTake a step further out, and there’s ample proof that our state as a whole is continuing to thrive. For just one example, the Economic Development Partnership of North Carolina (EDPNC), a nonprofit public-private partnership operating under contract with the NC Department of Commerce, reported on May 11, 2018 that North Carolina had been awarded the 2018 Prosperity Cup award for the third year in a row. EDPNC’s CEO, Christopher Chung, is quoted in the article as saying: “The fundamentals that have been drawing companies for a long time really haven’t changed much. These include a great quality of life, well-renowned educational institutions and population growth with a lot of people coming out of school or mid-career who are moving here with a job or in search of one, all of which deepens the talent pool.”

With the local and state economic booms still proliferating, we next look to the national arena, which we have been tracking and discussing for several months now in this blog. Since our last posting, the second quarter and June financial reports have been published. The highlights:

The US economy gained 213,000 jobs in June (multiple sources, mid-July 2018);
Unemployment claims dropped to 208,000 during the week ending July 14th, the lowest number since December 1969 (Fox News, 8/2/18);
The unemployment rate increased 0.2% to 4% in June, a small increase attributed to a “surge” of 600,000 previously non-job-seekers reentering the job market, reportedly to take advantage of economic growth (The Kiplinger Letter, 7/6/18; Hutchinson Family Offices, 7/16/18);
The Fed released its second .25% interest rate hike in June, as expected and previously discussed, and projected the expectation that it would raise rates twice more by the end of 2018, most likely in September and December (multiple sources, July 2018);
Stock market numbers were mixed at the end of the second quarter, with the Dow down 1.8% between January and June, the S&P 500 up 1.7% and the NASDAQ added 8.8% (Hutchinson Family Offices, 7/16/18).
The nation’s GDP for the second quarter grew by 4.1% (multiple sources, 7/27/18 – 8/1/18)
Wages and Salaries grew 2.8% over the previous 12-month period (Bureau of Labor Statistics, 8/1/18)
The effects of both enacted and potential tariffs are creating quite a bit of chatter, but conclusions are mixed and possibly premature at this time; still, they are being carefully monitored by nearly every political and financial source imaginable.

Taking everything into consideration, whether a company is relocating to the area from another part of the state or nation, expanding a current local company, moving from one part of the Triangle to another, or simply investing in the future through commercial real estate, it is clearly still a very good time for commercial real estate growth in the Raleigh-Durham area!

If you’re looking to move here to the Triangle, or are already here and looking to expand your reach with additional office, retail or other commercial space, we’d love the opportunity to help you. Please contact our experienced and knowledgeable team. You can call us directly at 919-336-1700. We look forward to hearing about you and your company, and learning about how we can help you!

We look forward to working with you!