www.REBusinessOnline.com March 2021 • Volume 21, Issue 12 POSITIVE OUTLOOK FOR CAROLINAS RETAIL SECTOR With restrictions easing, retailers and owners in the two states are hopeful for a strong rebound. By Julia Sanders year ago, the overall U.S. retail The Carolinas aren’t quite follow- sector was in a dark period of ing suit just yet, but both states have Auncertainty. With many people recently lessened restrictions. In North stuck at home indefi nitely and strict re- Carolina, Gov. Roy Cooper signed an strictions placed on restaurants and re- executive order to lessen some of the tailers by state and local governments, pandemic restrictions, such as opening brick-and-mortar retail sales declined some indoors and outdoors areas to 100 drastically in some markets. percent capacity, with the restrictions The National Retail Federation (NRF) of face masks and six of feet social dis- reported that retail stores had their big- tancing still in place. Additionally, re- gest hit in March 2020 when the pan- strictions of late-night sale and service demic caused all non-essential retailers of alcohol in bars, restaurants and other to temporarily close their doors. NRF stores were completely lifted. data showed that clothing store sales In South Carolina, Gov. Henry Mc- were down 50.5 percent from the month Master completely lifted restrictions before, furniture store sales were down linked to the alcoholic beverage sales 26.8 percent and sporting goods stores and mass gatherings on March 1 of this decreased 23.3 percent. year. Fast forward to 2021, with the release of three FDA-approved COVID-19 vac- InvenTrust Properties will soon open Popshelf, a newly launched retail concept from Popular with investors cines and the $1.9 trillion relief package Dollar General, at Sycamore Commons (pictured) in Matthews, North Carolina. The COVID-19 pandemic has passed by the U.S. Congress starting changed how retailers approach sales to be distributed, retail professionals time retail sales would surpass $4 tril- tions. and also where investors want to own seem to have a more positive outlook lion in history. Improved sales should Additionally, states such as Texas, retail projects. To many retail owners for the future. The NRF recently fore- motivate investors to acquire more re- Florida and Mississippi have fully and developers, the Carolinas remain casted retail sales to increase to $4.3 tril- tail real estate and push retailers and dropped their pandemic restrictions on lion in 2021, which would be the fi rst restaurants to want to open more loca- retailers and restaurants. see CAROLINAS, page 20 INDUSTRIAL IS IN A CLASS OF ITS OWN Investors are swarming to the safest real estate bet post-pandemic, but are owners willing to sell? By John Nelson he U.S. industrial sector has by says Garcia-Menocal about activity in in consumer patterns last year boosted of commercial real estate, especially ho- most all measures weathered the Miami’s industrial market last spring. online sales to north of 20 percent of tels, offi ce and retail, industrial is seen TCOVID-19 pandemic the best of “Overall industrial demand was accel- total retail sales for the fi rst time in his- as the surest bet and safest haven for all the major real estate categories. Ga- erated by the pandemic and lockdown, tory. investors amid the pandemic. Institu- briel Garcia-Menocal, executive direc- it was an eventuality.” “Because of the global dynamics of tional investors, REITs, private equity tor of NAI Miami, says last year the The ultimate driving force of the sec- e-commerce and how we were living fi rms and high-net-worth individuals collective industrial real estate com- tor continues to be e-commerce, sales our lives, industrial has been the ab- and families have all been competing munity braced itself for a slowdown in of which grew by 32 percent in 2020 solute benefactor of the problems that for industrial properties, albeit at dif- activity and a rise in vacancy, but that ($788 billion) compared to 2019 ($596 the pandemic caused in other asset ferent tiers. never materialized. billion), according to the U.S. Census classes,” says Erik Foster, principal of The level of competition has driven “Renewals began coming in, and Bureau. Government-mandated re- Avison Young’s Chicago offi ce. things were moving incredibly fast,” strictions for stores and a general shift Relative to the other major categories see INDUSTRIAL, page 22 INSIDE THIS ISSUE Want to receive this magazine at home? Visit www.francemediainc.com/ Market Highlight on publications Birmingham to temporarily change your address today. pages 13-16 Suzanne Hillman grew up renovating homes with her family. Now, she’s President and CEO of Southern Management Companies, a Top 50 multifamily real estate firm with nearly $5 Billion in assets. Her portfolio – including office buildings, hotels, and multifamily – serves over 67,000 residents, most of whom are America’s workforce. From their first property, which is still one of their top-performing assets, to their 76 other properties, Suzanne knows how to take “what is” and turn it into “what could be.” To learn more about what drives Suzanne, go to WalkerDunlop.com/WhatDrivesSuzanne WHAT DRIVES YOU March 2021 • Volume 21, Issue 12 PUBLISHERS’ NOTE VACCINES, LESS RESTRICTIONS GIVE RETAIL PROS IN CAROLINAS NEWFOUND HOPE President Joe Biden’s goal of getting 100 million COVID-19 vaccines admin- FRANCE MEDIA, INC. Southeast Real Estate Business (ISSN istered within the fi rst 100 days of his Jerry France ......................... Chairman & CEO/Publisher 1530-6097) is published monthly by presidency was reached by day 58, and Scott France ..............................President/Co-Publisher France Publications, Inc., d/b/a France as of this writing there have been an es- Scott Philp ...................................Chief Financial Of cer Media, Inc., Piedmont Center Fourteen, Jaime Lackey .............VP of Marketing & Digital Strategy timated 143 million vaccines doled out, 3535 Piedmont Rd., Suite 950, Atlanta, Randall Shearin ....................SVP, Editorial & Operations according to National Public Radio. GA 30305. Telephone (404) 832-8262, fac- Coupled with the $1.9 trillion stimu- EDITORIAL simile (404) 832-8260. E-mail: southeast@ lus package, the success of the vaccines Matt Valley ........Editorial Director, Real Estate Regionals francemediainc.com. Periodicals postage has given newfound hope to retail John Nelson ..........................................................Editor paid at Atlanta, GA, and additional mail- professionals as shoppers and diners Julia Sanders .........................................Assistant Editor ing offi ces. Jerry France Scott France begin to frequent stores and restau- Kristin Hiller ...........................................Assistant Editor POSTMASTER: Send address changes Chairman & CEO President rants more and restrictions are lifted. Jeff Shaw ...............................................Assistant Editor to: Southeast Real Estate Business, P.O. Taylor Williams.......................................Assistant Editor In North and South Carolina, the retail ed near-shoring of manufacturing. Box 308, Skokie, IL 60076. Sarah Daniels......................................Content Manager real estate community is also bullish Investors are competing for deals Southeast Real Estate Business is a reg- Lynn Peisner .................................................Staff Writer as their populations continues to grow and are looking at portfolio transac- Nick Topolski ...................................... Graphic Designer istered trademark of France Publications, and jobs recover. tions and joint venture arrangements Julie Hunt ........................................... Graphic Designer Inc. Subscription rates: USA 1 year $69; 2 The tailwinds in place should help to build up their industrial holdings. years: $116. Single copies are $10.00. For ADVERTISING the Carolinas’ top retail markets make One source says the only tricky thing subscriber services, including change of Scott France ............................................... Co-Publisher up for lost time, and developers and has been convincing owners now is a Ryan Nixon .......................................Associate Publisher address or subscriptions, please email brokers are hopeful the region will good time to sell [email protected] or call (855) 736-2644. reach new heights using the lessons Just like shopping centers in the Car- INTERFACE CONFERENCE GROUP ©2021 France Publications, Inc. For they’ve learned this past year. Read olinas, France Media and our InterFace Richard Kelley ................................Senior Vice President reprints or to photocopy articles, please Alicia Turlington ..............................Conference Manager more about the Carolinas retail scene Conference Group are also returning contact Barbara Sherer, manager of spe- Kelly Moustafa............................Conference Coordinator in our cover article. to normal with conferences and webi- Jada Braxton...............Conference & Marketing Associate cial advertising at (404) 832-8262. Our second feature is a look at indus- nars, some virtual and some in-person. The opinions and statements made trial acquisition activity. The hand’s Be sure to visit interfaceconferencegroup. CIRCULATION AND ADMINISTRATION by authors, contributors and advertis- down darling of commercial real es- com for more information about our Teresa Hennington .................................Of ce Manager ers to Southeast Real