21. “No man ever steps in the same river twice, for it's
not the same river and he's not the same man.
You could not step twice into the same rivers; for
other waters are ever flowing on to you.”
Heraclitus
34. MISSION: Support opportunities to put Chapel
Hill’s people to work, and create economic
prosperity for all, now and in the future.
35. TARGETS: Output of Medical School, Pharmacy
School (and research), Applied Sciences and
Technology
36.
37. 1) Strengthen the Town-Gown Relationship
2) Work becomes part of The Life of The Town
3) Tell our Story
38. 1) Strengthen the Town-Gown Relationship
For 200 years, this has been the place people go to
college and then leave. The downtown has
become a place to dine, but not to shop or work.
The town and the university need to coordinate
their growth, so that this becomes one lively and
diverse place.
39. 2) Work becomes part of The Life of The Town
People want to start companies here, but there is
not enough room for them to grow, especially
downtown, where they can walk to coffee. Skilled
and creative people need not only offices and
labs to design and make things, but workshops and
studios as well.
40. 3) Tell our Story
The name “Chapel Hill” is nationally recognized. To
locals, this is still “The Village”, with stone
walls and the shade of stately trees that beckon for
conversation. It offers something different
than Boulder, Berkeley or Cambridge. For the post-
doc looking to settle down, this can be their
new hometown.
41. For Pride: Chapel Hill is nationally recognized as an
intellectual center, but it lacks the local jobs and
business that translate new ideas into new products
and services that have impact on the world.
For Prosperity: More jobs and business will create
community wealth and build the tax base.
For People: Recent graduates will be able to start
their careers and families here, filling out
the middle of the generations.
42.
43. ___
Market conditions
Office – 8-9% +/- vacancy
(approximate 2.4 million SF)
Retail – 6% +/-vacancy
(approximate 2. million SF)
___
Room for growth!
47. ___
Market Demand
Office
> In walkable environment
> Changing the regional development
perspective of Chapel Hill
> Up to 1,000,000 SF of demand
Retail
>To meet growing demand of existing
businesses
> To capture more of our own demand
(up to 1,000,000 SF by 2020)
___
50. Places and Spaces
The Residential Real Estate Market
August 25, 2016
Mark Zimmerman
Broker/Owner - RE/MAX Winning Edge
51. Please note:
All data from Triangle Multiple Listing Service &
10K Research and Marketing
All data through July, 2016
County review, not cities
Focused on single family detached
Not multi-family (townhouse/condo)
No rentals/apartments
52. 2016 - The Year that Just Keeps Giving
2016 builds on 2015 success
Momentum continues through 2nd quarter
Reaching or surpassing historic highs
60. 2016 - The Year that Just Keeps Giving
Limited Supply + High Demand =
Increasing prices
It’s a Seller’s Market
Frustrated Buyers
Orange reaches milestone
Chatham & Durham = more price value
63. 2016 - How has Market Reacted?
Durham & Chatham adding new homes
Orange living off existing homes
New construction helps keep older home
prices more affordable
72. Who We Are
Kyle Touchstone
President
Jamie Vaughn
Vice President
Ben Townsend
Business Services
Manager
Alyssa Byrd
Communications
Specialist
73. About Us
Chatham Economic Development
Corporation (EDC) is the lead economic
development agency for Chatham County.
The EDC is a 501(c)3 economic
development non-profit that provides
support to businesses throughout the county
and markets Chatham County as the
preferred location for emerging growth
companies.
93. • 7,100+ acre mixed-use
development
• 22,000 residential units
(60,000 people)
• 22 million square feet of
non-residential
development
◦ Targeted businesses:
Technology, biotech, clean
tech, and medicine
104. Name City Rooms Open Date
Holiday Inn Express Hillsborough 83 April 1997
Microtel Inn & Suites by Hillsborough 70 May 2000
Hampton Inn & Suites Carrboro 142 August 2013
Autograph Collection The Siena Hotel Chapel Hill 79 October 1987
University Inn Chapel Hill 132 June 1966
Days Inn Chapel Hill 50 January 1999
Quality Inn Chapel Hill 119 January 1987
Residence Inn Chapel Hill 108 January 2007
Curio Collection Franklin Hotel Chapel Hill 67 January 2007
The Carolina Inn Chapel Hill 185 June 1924
Aloft Hotel Chapel Hill 130 April 2010
Courtyard Chapel Hill 169 September 2004
Sheraton Chapel Hill 168 June 1980
TOTAL: 13 Hotels 1502
105.
106. 358 new rooms (21% increase in supply)
Hyatt Place 110 Rooms Chapel Hill 5 Stories
AC By Marriot 123 Rooms Chapel Hill 4 stories
Hilton Garden Inn 125 Room
10,000 sq. feet
meeting space
Carrboro 5 stories
116. Hillsborough
• Sportsplex:
• Sportsplex hosted 553,000 people in 2015.
• Consistently ranks in top 5 visitor destinations
• Opportunity for overnight accommodations
• Near growing Hillsborough assets
• SOCCER:
• Soccer.com has 5 full size fields that can be
reconfigured for many more smaller fields for
younger teams.
• OC may be adding anywhere from 2-4 new fields
(two if they are synthetic turf, four if they are not).
•
117.
118. Why Hotel Investment Here?
• A typical hotel investor, when evaluating this market, looks for both
specific property and comp set evidence of hotel performance
levels approximating the following:
• Full service hotels:
Occupancy: 70% or higher
ADR: $150 or higher
RevPAR: $105 or higher
•
Select/focused service hotels:
Occupancy: 70% or higher
ADR: $115 or higher
• RevPAR: $80 or higher
• RevPAR is the key indicator here.
119. Orange County Tourism Focus
• The entry of these new rooms coupled with
slower growth on the demand side will continue
to create a relatively uncertain transient market
landscape during 2017 as the market continues
to absorb the new inventory.
• The focus of the Chapel Hill/Orange County
Visitors Bureau is two-fold:
▫ Marketing the assets of our communities
▫ Feasibility study to look at new demand
generators
120. Durham and Wake Counties
• Durham currently has 8,712 hotel rooms--21%
growth in supply in 2017 to 9,135 rooms.
• Wake County has 15,500 hotel rooms and will see
11% growth in 2017 to 17,601 rooms.
121. • Durham:
• November 2014 the 128-room Hilton Garden Inn
at Medical Center opened, followed by 125-room
21c Museum Hotel & 54-room Durham Hotel.
• Starwood opened the 134-room Aloft Hotel at
DPAC and Marriott opened the 147-room all
suites Residence Inn McPherson/Medical Center.
• In addition to these 588 new rooms, the following
properties will add an additional 423 rooms.
▫ JB Duke Hotel (January 2017) 198 rooms
▫ Graduate Hotel (Spring 2017) 150 rooms
▫ Unscripted Hotel (April 2017) 75 rooms
122. Economic Development Panelists
Dwight Bassett
Economic Development Officer
Town of Chapel Hill
Steve Brantley
Director of Economic
Development
Orange County
Annette Stone
Econ. & Community Development
Director
Town of Carrboro
Kyle Touchstone
President & CEO
Chatham Economic Development
Corporation
123. Upcoming Events
Face Time
Sept. 15, 5:30-7:30 p.m.
Rizzo Conference Center
Performance Golf Classic
Oct. 10, 8:30 a.m.-5 p.m.
Chapel Hill Country Club
Economic Outlook Briefing
Oct. 20, 8-10 a.m.
Sheraton Chapel Hill Hotel
PRIMETIME Business Expo
Nov. 10,
UNC Friday Center
www.carolinachamber.org/events
124. Explore the latest local, state and national trends in our economy. Visit
carolinachamber.org/events for more information!
Economic Outlook Briefing
7:30-9:30 a.m., Thursday, Oct. 20 at the Sheraton Chapel Hill
Notes de l'éditeur
Aaron said I should plan to share what seems important to 150-200 business people in Chapel Hill.
The world is not flat…
It is actually round…
No man ever steps in the same river twice, for it's not the same river and he's not the same man.
You could not step twice into the same rivers; for other waters are ever flowing on to you. Chapel Hill is different today than it was 30 years ago and we are different people. Perhaps the Chapel Hill of tomorrow will become far greater than the Chapel Hill many of us remember in our past.
Just to highlight a few developments that prepare for that future.
Carolina Square, home to Target and under construction.
Glen Lennox currently seeking equity with hopes of beginning their redevelopment in 2017.
South Creek in a marketing mode and we hope to see them come out of the ground in 2017.
Many projects under construction and many others in the planning stage.
In for their Zoning Compliance Certificate for Phase 1 and in a national marketing effort for commercial users.
Projects in downtown….
Approved SF…
Thinking of our current views of Chapel Hill and how we begin to see ourselves into the future…
Began as a way to help Council understand the market of retail development and evolved to a Commercial Development Strategy to replace the Economic Development Strategy.
US Universities
Taking our place on the map….
Grow jobs for Chapel Hill
Target companies that seem to fit as an out-growth of research, and applied sciences ( includes technology).
Create jobs from innovation, entrepreneurs and companies that desire to locate here.
Commercial Development Strategy
Create an improved relation that leads to retention of talent.
The Town becomes a key facilitator of space for doing business and providing the necessary infrastructure.
Can you tell the Chapel Hill story? Boulder’s is :“Boulder always seems to be the perfect storm of everything,” he says. It has 300 days of sunshine a year, Flatirons mountain views, a foodie culture with a killer craft beer scene, universities, a tech-savvy government and, according to a 2013 New Engine/Kauffman Foundation research report, the highest density of tech startups in America.
We have to better develop our business and quality of life story and include our trees, rock walls and graciousness…
Pride: Recognized center of knowledge, Prosperity: More jobs and businesses, a place for you children to do an internship, People: Stop the brain drain that we have seen in the past
storytelling
storytelling
MLS - most, but not all sales.
Used 12 month rolling when appropriate to account for seasonality
Chapel Hill/Carrboro? On most measures, more extreme. In school district, even more extreme.
SFD for apples to apples. Chatham - most inventory. Durham and Chapel Hill more diverse, but trends same.
Just don’t have a good database for rentals, as important as they are to these markets
Single Family Detached (used unless noted). Healthy and steady growth. Shows last 18 months. Used 12 month rolling data to smooth out seasonality. 9% YTD - very good, but not so fast as to get overheated.
Last ten years. Pre-recession. Durham very close to highs. Chathamand Orange exceeded them a while ago.
Despite listing growth, sales have kept inventory down.
6 is considered balanced market. All areas “seller’s markets.” Durham crazy low. = fewer days on market, multiple offers, disappointed buyers, higher prices.
You may be curious how supply works by price point. More supply for higher prices, but coming down. Orange $450+ nearing equilibrium, dropped by a third. $300-$450 real sweet spot - down 43%
Chatham still working through high end backlog - also adding a lot of new construction (more on that later). Lower price points low inventory
Durham is basically just very hot across the board.
Orange and Chatham very close - Orange milestone - broke the $400,000 barrier - will make homeowners in room happy, but not affordable housing advocates
Orange = +1.9% higher than Chatham and +63.3% higher than Durham
What do you get for your money? Equalize things using price per square foot.
Still costs healthy premium to by in Orange.
Orange = +8.3% higher than Chatham and +32.5% higher than Durham
But Orange much higher PPSF
New Construction - Chatham and Durham very active. Chatham new construction driver for a while (less increase). Durham accelerating.
Chatham 2.5 times, Durham 5.5 times
The introduction of brand new construction means competition for older homes, which must drop price to be competitive
Chatham County is a largely rural county in central North Carolina. According to Census estimates, Chatham County was the fastest growing county in the state between 2014 and 2015.
In spite of a steadily low unemployment rate, the County faces challenges with providing well-paying jobs for its educated and skilled workforce.
There are more than 33,000 residents in the workforce, and fewer than 14,000 jobs. Those jobs, on average, pay well below the state average.
Near the Walmart on 15-501, a $2.1 million, 54,000 square foot two-story storage facility recently opened.
Three years ago, a Charlotte development group purchased Cole Park Plaza. Now called North Chatham Village, developers are overhauling the entire center.
Several buildings have been demolished and remaining buildings are being upfitted with modern facades.
The owners are working to attract national chains, including a McDonald’s and Dollar Tree.
Polk Village has a day care, medical facility, and an assisted living facility. Its multi-tenant commercial space has an Asian restaurant, salon, and physical therapy space.
Briar Chapel broke ground on the commercial portion of its development.
The 17,000 square foot commercial building next to Lowe’s Home Improvement in Pittsboro’s Bellemont Station was recently completed.
Four new apartment buildings with 76 units at Bellemont Station increases the diversity in housing options for residents.
Progress continues on the new conference center, slated to open this fall.