Monday, February 7, 2011

The Democrats Are Coming!

It is not often that I get a chance to comment on breaking news, but here I go. The local media is flooding the airwaves and print with stories of how this will affect Charlotte, what the economic impact will be, what kind of security will be in force, etc. All important stuff, but what I want to discuss is how this will affect property values in the downtown area.

In my January 2011 Report, I mentioned the likelihood of the announcement comin
g in the 1st Quarter, and here it is. I also commented on other topics that would be in the news during 2011, including; The Knights Stadium; The Park; Two Ten Trade; The VUE; and Amtrak.

With 19 months separating us from the start of the convention, I believe the following things will happen. Knight Stadium and the accompanying Romaine Bearden Park will be started, and completed. That whole section of the Third Ward will be filled in to make room for outdoor events during the convention. Both the Park and the Stadium will have long lasting benefits for the city, but to have them available for the convention will be amazing.

Almost coupled with the Stadium and Park is the Amtrak Station and Greyhound Bus Terminal. With the renewed emphasis on HSR (High Speed Rail), a new station in the heart of the city will help punctuate the message that Obama delivered in his State of the Union speech. That terminal will also be home to the Commuter Rail project running up to Mooresville. And, having recently taken a Greyhound Bus trip, I can tell you that the bus terminal needs improvement/replacement. I would also expect to see the extension of the LYNX to the University area to be in full swing.

These three projects connect a swath from Trade and Graham to Tryon and Third Streets and they all represent infrastructure improvements.

It has already been announced that The Park will begin its reconstruction early this year. The new configuration of The Park will create over 100 hotel rooms in addition to over 80 condos. Its location between the convention center and the arena almost guarantees its success. I would also expect to see the Two Ten Trade site be reconfigured into a major hotel. Situated in the heart of the city and across from the arena, this site is begging to be completed. It will be a shame that the residential market will not be in a position to take it, but a hotel there makes sense.

The VUE will continue to have closings at a pace slower than the developer would like, but as the climate for residential changes, and little new inventory is added, this property will begin to take on new contracts.

The question is how will all this affect property values in the downtown market? I often speak of trends that are taking place in society. Northern cities will continue to shrink as infrastructure costs will force taxes to rise, making it difficult for both individuals as well as companies to remain there. That trickle will increase.

Efforts by the Chamber of Commerce supported by the banks and Duke will continue to encourage related companies to move here citing lower costs of doing business, progressive governments, mild weather, an airport with direct flights both nationally and internationally, close to the mountains and the beach.

So, as this inevitable growth takes place, and there are no, or few, new residential projects available, the laws of supply and demand will lead to higher property values, and that can't be any too soon!

No comments:

Post a Comment