Welcome to the Orange County

Development BriefingTuesday, Oct. 20

Sheraton Chapel Hill Hotel

Our Presenting Sponsor

Our Breakfast Sponsor

Our Community Supporters

Renee Hendrickson

Thank you to our 2015 Major Investors!Community Champions

Thank you to our 2015 Major Investors!Community Investors

Thank you to our 2015 Major Investors!Platinum Sponsors

Thank you to our 2015 Major Investors!Gold Sponsors

Welcome to Our Newest Major Investors

Join the Conversation

@carolinachamber#OCDB15

Dwight Bassett

Randy Cox, Coldwell HPW Bringing welcome on behalf of

the Greater Chapel Hill Association of REALTORS

Mark ZimmermanBroker/Owner

Re/Max Winning Edge

Orange County Development Briefing

The Residential Real Estate Market

October 20, 2015Mark Zimmerman

All data provided by Triangle Multiple Listing Service 10K Research and Marketing

2012 was a Good Year2013 was a Better Year

2014 we hit a speed bump

2015 Back on track.

Closed Sales vs YA - Last Year

Closed Sales vs YA - This Year

Days on Market vs YA – Last YearOrange

Days on Market vs YA – This Year

Inventory vs YA Last Year

Inventory vs YA – This Year

Month’s Supply

Orange Month’s Supply by Price

9.5

5.2

3.8

Median Sale Price

Median Price Per Sq Foot

SummaryTrends bouncing back in 2014

• Closed Sales and Pricing Increasing• Days on Market, Inventory & Month’s Supply

Declining• But there’s an undercurrent– Orange continues to lag on new construction

New Construction Closed Sales

New vs Resale Closed SalesLatest 12 Months (Sept)

New9%

Resale91%

Orange

New 12%

Resale88%

Durham

New33%

Resale67%

Chatham

New20%

Resale80%

Triangle

Orange Closed Sales – Resale vs New

What’s the Impact?

• Competition heating up– Orange County• Aging inventory• High price of entry• Higher cost of living

– Neighbors • Newer homes• Lower taxes and fees• Improving quality of life

2015 Momentum is Back

Competition Getting Better

Michael ClaytonClayton Commercial Realty

Orange County, NC

Michael Clayton, Owner, BIC

Commercial Real Estate

Orange County Market Trends

Overview Snapshot of Each Commercial Real

Estate Category – Office, Retail, & Industrial/Flex Space

Availability of Square Footage by Category

Pricing, Vacancy & Leasing Trends by Category

Orange County Office Overview

Source: The KARNES Report

Orange Co. Office Pricing Trends

2010 2011 2012 2013 2014 2015 YTD

Orange Co. Office Vacancy Trends

2010 2011 2012 2013 2014 2015 YTD

Orange Co. Office Leasing Trends

2010 2011 2012 2013 2014 2015 YTD

Chapel Hill Submarket Retail Overview Q4 2014

Source: The KARNES Report

Orange Co. Retail Pricing Trends

Orange Co. Retail Vacancy Trends

Orange Co. Retail Leasing Trends

Orange County Industrial Overview

Source: The KARNES Report

Orange Co. Industrial Vacancy Trends

Orange Co. Warehouse Leasing Trends

Orange Co. Flex Space Leasing Trends

Orange Co. Vacancy Rates Summarized

Office ~ 5.24%Retail ~ 6.3%

Warehouse ~ 0.6%Flex Space ~ 16.5%

Sara StephensCEO, Hillsborough/Orange Chamber of Commerce

Development Activity

HILLSBOROUGH

Residential Construction

is on the RISE

WHY??

• We are Cool • Modern Facilities• Historic Charm• Artistic Accolades

Approved Residential Construction Actively Building

Project name Approved units Type515 N 24 condosBellevue 114 apartmentCorbinton Commons 211 senior single family & apartmentFiori Hill 46 pocket neigbhorhood (single family)Approved, not under construction 395

Under Review Requested units TypeCollins Ridge 1150 apartment, townhome & single family

Pipeline

Project Name Description Review Status

Eno Cotton MillHistoric fabric mill undergoing conversion from light industrial to mixed use approved

Gatewood36,000 sf restaurant, event, and brewing complex Master Plan approved

Hampton Pointeshopping center - has 3 out parcel available - one under review as Advance Auto Parts Master Plan approved

North Hills Centershopping center under new ownership undergoing facelift approved

Oakdale Villageshopping center - has approximately 47,000 sf of retail space approved but not built Master Plan approved

Skimmerland 16,500 sf light industrial under construction approved

Tryon Flex Spaceapproximately 60,000 sf flex space approved but not under construction approved

Valley Forge Storageapproximately 60,000 sf flex self-storage space approved but not under construction approved

WaterstoneMixed use development - has roughly 600,000 sf of non-residential yet to build in Master Plan Master Plan approved

Non-residential Activity

North Hills Center

Under New Ownership

WaterstoneMixed use development – has roughly 600,000 sf of non-residential

OH!

NC 86 & I-85

Notes from OC Economic Development

• A purchase option submitted for space leased by A Southern Season

• Multiple hotel prospects are interested in exploring potential sites

• Economic Development Office has submitted multiple Hillsborough sites to the State of NC inquiries seeking land for light mfg., distribution, office and flex.

• Loans and grants to small businesses are active. Hillsborough leads other towns in # of actual loans and grant recipients

Experience Historic Growth…

Holly FraccaroCEO, Home Builders Association of Durham,

Orange, & Chatham Counties

BUILDING OUR FUTURE

Regional Challenge: Rapid Growth

• Anticipated Growth in the Triangle–Raleigh-Durham-Chapel Hill MSA*

expected to grow 61% by 2020 & expands by 50,000 new residents annually.–Hillsborough is expected to grow by 10% this year alone!

MSA= Metropolitan Statistical Area

Industry Challenge: Labor Shortage

Source: NAHB

Industry Challenge: Subcontractor Shortage

Source: NAHB

Industry Challenge: Lack of Training Options

• Carpentry only, offered through Continuing Ed Program

• Is NOT an Apprenticeship Program

• Does not provide Certification

• Excellent Sustainable Technologies Program

• No courses or programs for (basic) Carpentry, HVAC, Electric, Plumbing or Masonry.

Industry Challenge: Impact on Production

Source: NAHB

Industry Challenge: Marketing & Recruiting

TRIANGLE BUILDING INSTITUTE*• Apprenticeship Training Programs in:– HVAC– Electric– Plumbing– Carpentry–Masonry

• Other Training Opportunities:– Advanced Building Science, Residential Construction

Supervisor, English as Second Language, GED, Certified Aging in Place Specialist , Certified Green Professional, OSHA

• Accredited Curriculum: Home Builder Institute, NCCCR• Student Recruiting: SkillsUSA, El Centro Hispano,

Workforce Investment Boards• Tuition: $3,500/year• CLASSES BEGIN FALL 2016!

BUILDING OUR FUTUREFor More Information:Holly Fraccaro, CEO919-265-9350

Jeff FurmanCarolina Square

and Carraway Village

Carraway Village Formerly The Edge

Carraway Village (formerly The Edge)

Carraway Village

Bill Christian, William Christian & Associates

Charterwood

Gary Hill, Woodhill NC, LLC

South Green

South GreenCarrboro, NC

Orange County Development BriefingOctober 20, 2015

Gary Hill, Woodhill NC, LLC

South Green – 501 S. Greensboro St Approved June 2015 Revitalization Infill Project 44,000 SF Retail / Restaurant / Bank / Medical Public/Private Partnership with NCDOT for Stormwater

Improvements Continuation of Carrboro Bike Path Gateway to Carrboro linking southern neighborhoods to

downtown 1600 SF to 14,000 SF options exist for retailers Largest pervious paver system in Orange County / LED

parking lot lights Roundabout: improved traffic flow

Area Map

Lee Perry

Village Plaza Apartments

Weaver Crossing

Q&AFacilitated by Aaron Nelson

CHYP: Cocktails with the Candidates

5:30-7:30 p.m., TONIGHT at The Franklin Hotel

• Chapel Hill Young Professionals, mingle with your peers and learn more about the candidates running for local offices.

Early Voting Begins Thursday NC State Board of Elections: www.ncsbe.gov

Business Hall of Fame Gala6:30-9:30 p.m., Nov. 5 at The Carolina Inn

Tickets and information: carolinachamber.org/halloffame

Celebrating the 2015 Hall of Fame Inductees

Stephen Edwards Eva Barnett Jean Holcomb

Ted Seagroves John Woodard Eddie Mann The Hogan Family

Bring your business cards and some friends to our monthly Business After Hours. Free for Chamber members, no registration required.

Business After Hours5:30-7:30 p.m., Nov. 19 at Chapel Hill Country Club

Thank you, briefing sponsors!

Rene Hendrickson