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.

Downtown Durham Is Booming!

Downtown Durham Is Booming!

Downtown Durham is booming. Take a drive down any of the one ways that will confuse you and see the change happening. It’s all local, hip, and for the better. Businesses are lurking at the opportunity of opening up shop in one of the seven downtown districts. (Brightleaf, Warehouse, Central Park, City Center, American Tobacco, Government Services, and the Golden Belt)  Showing a client downtown Durham office space is something that someone who lives in Durham can easily take for granted. Getting to know the area and what is around it is truly something special that has its own little local flare of food, shops, and entertainment.

No matter where you are in the seven districts, one thing is highly probable. You won’t notice any major chain stores or restaurants. Downtown Durham may be one of the only places in America you won’t find a Starbucks in the heart of the city. Supporting local businesses is high on the Durhamites radar and the thriving Starbucks world with 28,218 locations has yet to make its way in. Instead, they are opting for more local coffee shops and sit down restaurants. For breakfast, I highly recommend Dames Chicken and Waffles. A truly southern style homemade waffle with different options and types of chicken to put on top. Moving on from breakfast, one could take in a great lunch at any of the locally sourced restaurants including: Tobacco Road, Tylers, Bull City Burger, and Bull Mcabes, just to name a few.


Thinking of skipping lunch and going straight for the after work drinks? Do you want to set up an office space where you know your co-workers are going to be able to walk to some great hangout spots? Look no further than downtown Durham. The new rooftop bar with a pool is a great local hangout that encompass’s many different activities from hanging out around the pool overlooking the city to morning yoga class. Another new change to Durham is the amount of locally brewed beer and ciders there are. From brewing in their own shop to bringing in from Asheville and around the state, you can be lucky to find anything from a light beer to dark and all in between. While at the breweries and pubs, you’ll never be bored. Board games and yard games are all over the place and you’ll be likely to find something different at every table or in every lot. From bocce ball to corn hole, to life sized jenga – they have it all.

Don’t just take the writers word for it however; take Forbes word as Durham is the #3 place in the nation where your paycheck stretches the furthest to enjoy these activities. Take Wallethub’s word that Durham is the #7 best sports cities where you can enjoy a Durham Bulls game who is continually on top of the AAA league. Another great source would be from Growella that Durham is #1 for millennials in the country!

So whether you are on the hunt for some of the 3.2 million square feet of office space or want to get in on the brand new 612,000 currently under construction or 230,000 announced office space. Let Kima Commercial help you find the perfect space for you and your employees to take your company to the next level through work and play.

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.

We look forward to working with you!

The Current Growth Phase Of The Real Estate Market

The Current Growth Phase Of The Real Estate Market

The current growth phase is proving to be the Tom Brady of real estate market cycles, and it appears that there is still plenty more power to keep it going. Since hitting bottom in 2009, the current cycle is now entering year eight of its upward trajectory. Despite signs that growth is slowing, or even flat in some cases, the common view is that this prolonged growth cycle will stay the course for at least another year—if not longer.

 

The real estate cycle is stretching out along with the current period of economic growth. Many real estate executives believe the prolonged growth is due to the longer-than-normal rebound from the 2008-2009 financial collapse. Employment growth, for example, started out slow and has risen gradually. Low wage growth has also kept inflation in check.

 

The lingering question among real estate professionals is will the continued growth translate to demand for real estate space?

 

Outlook on Cap Rates

 

Another near-term question is how higher interest rates will impact pricing and cap rates, especially in this mature stage of the real estate cycle. Given the rise in interest rates that has already occurred, cap rates have likely reached their low point. At best, cap rates will be flat or slightly higher in most markets this year due to higher capital costs.

 

Going forward, the key to determining what happens with cap rates in individual metros and property sectors is how deep the bidder pool is and whether there continues to be strong demand from foreign buyers.

 

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Keller Williams Preferred Realty, 7920 ACC Blvd, Suite 210, Raleigh, NC

919-336-1700

Peter@KimaCommercial.com

We look forward to working with you!

How Will Cyber Tech Affect Real Estate in 2017

How Will Cyber Tech Affect Real Estate in 2017

Many different analysts are saying the cyber tech market is going to grow this year! Here are some of the sub-headings of the Kiplinger Letter, dated January 6, 2017:

  1. When Donald Trump takes office on January 20th, he’ll face a slew of urgent cyber threats
  2. [Trump’s] First task is dealing with foreign hackers
  3. Another challenge: Aging federal computers
  4. Look for Trump to roll out a cyber-security strategy yearly in his term
  5. When it comes to the alarming state of federal IT, big changes are on tap.
  6. An overhaul of the world’s largest IT system will dragon for a year

These are just a few article titles floating out there. How does this affect Real Estate agents and investors? Well, if you live here in the local Research Triangle Park, you need to understand what is happening all around us. All information leads us to one conclusion: there will be a LOT more start-up IT companies that will need space to run and grow their companies. More companies will be looking to secure government contracts as the White House rolls out their plans. The larger, more established IT firms will have a push for growth, which will lead to building expansions and new construction. However, the predictions show a steady influx, not a rapid, out-of-control growth in the IT world. Investors and Developers need to act accordingly to this need in our market place. A great resource of knowledge is your local Commercial Real Estate company. One that comes to mind is Kima Commercial. Kima Commercial has a great deal of market knowledge and well-trained commercial brokers. The key word here is commercial. You will want to hire a commercial agent, not just a residential agent who is playing around with commercial real estate. Commercial real estate is a completely different process that has to be learned by actual experience, rather than simply passing a state exam.

If you are in the market to buy property or to buy an existing building, we would recommend the well-qualified Kima Commercial team!

Forecast of the2017 housing market!

A quick glance at the housing projection for the year 2017:

Single-family projections are about 865,000. If we hit these numbers we will cap out above last year’s numbers of 783,000.

Multifamily new starts are holding about the same as last year. The forecast is for about 390,000 versus 385,000 last year.

New-home sales are also predicted to be up from last year, at 635,000 versus 561,000

This year’s forecast for existing-home sales are 4.6% versus last year’s 4.3%.

The market demands are growing. Builders are struggling to keep up with the demands. The demand for buildable lots is high. Even if you can obtain the material and workers to construct a new home, it does not mean you can find a good lot. We foresee the need for commercial agents to step in and find great lots that are for sale. If you find an agent who is good at this type of property search, you should hold on to them. Kima Commercial is, simple put, one of the firms that understands the need for a great commercial agency. The developers need great agents and Kima Commercial has them. Our home value will grow throughout the year 2017 up to about 5%. Starter homes will increase in value faster because of the shortage of product on the ground. Even the larger homes of over $500,000 will show a steady increase in 2017. Markets that are seeing major growth will continue see growth, and markets that might have been viewed as slow will not be this way in 2017. The average home size in 2017 will decrease, which is being caused by the supply and demand. Smaller home will sell faster and are currently in high demand.

We are seeing a major surge in the cost of lumber. The average increase was about 18%last year alone. This is partly because of the tariffs on Canadian lumber.

How high will interest rates go in 2017?

Another area that will change the demands in the market is the cost of money. Our mortgage rates will increase in 2017. This will slow the rate of refinancing and lower new loan origination. Interest rates will be something to watch closely during 2017.

A great way to navigate through these waters is by enlisting help from many different groups and people one of which is a commercial real estate agent. At Kima Commercial we have great access to builders and engineers that can help a client make an informed decision on a building or property. There are so many things you should know before you purchase, and Kima Commercial is an easy way to make sure you get all the facts before you invest.

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Keller Williams Preferred Realty, 7920 ACC Blvd, Suite 210, Raleigh, NC

919-336-1700

Peter@KimaCommercial.com

We look forward to working with you!