Raleigh just gets more popular with all the global uncertainties swirling. We just need the right break in the local economies and I think we’ll start seeing a lot more physical progress.
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Interest rates not going down anytime soon probably, but hey hopefully this project starts and not down scaled to something uninspiring, this area deserves something special, I have seen this way to often in Raleigh, projects go from glitz and glamour to blah, sorry don’t mean to be negative, but this was the one project, I really want to see get built asap.
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I Have seen were some of the “forecaster’s” are saying the FED will start cutting rates by mid to late summer. For what it’s worth.
I think the desire is to know they aren’t going up more, so costs can be more predictable and budgets adhered to. Of course rates could go up and make it unattractive, but I think the concern in jumping right now is that risk of unpredictability.
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That would be awesome! I definitely hope, I’m wrong.
The supply chain, labor, and inflation are three other issues that can give developers pause. Having just completed just a substantia fit-up project, I can tell you that those were not inconsequential issues.
I would be very, very surprised. At best a pause unless something breaks bad in the financial system. Inflation has slowed down tremendously, but still above target by most measures. I would think the bigger issue is corporate RE market in general and not interest rates specifically. I would be very surprised if any high end office building gets green lit until there is more clear line of sight into how the commercial RE sector will play out. Very good chance we are seeing a slow moving train wreck there with combination of rapid rate hikes, financially exposed regional banks and WFH dynamics, but that could take years to materialize.
My guess is you will only see momentum in commercial RE for places that attract small in person businesses like restaurants, yoga studios etc. Downtown would be best to focus on bringing as much residential online as possible during this stretch to accommodate those type of businesses. JMO and lots of uncertainty around how it ultimately plays out.
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I work on the residential mortgage side of real estate & rates have come down from their highs late last year. The economic data that’s coming in right now also points to a slowing economy which is good for rates as well. The slippery slope is if things slow too much we end up in a recession which doesn’t help businesses feel confident in expanding. The banking crisis last month also isn’t helping as banks are tightening up lending to avoid any repeats. It’s good to hear this developer was able to extend financing for another year, maybe they’ll be able to take advantage of lower rates when the come vs. a longer pause if the economy goes into a recession.
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So form what I have seen in the latest projections by helping my clients(developers) is that the interest rates will start going down towards the end of summer. This is good news in the development world because even dropping 50 basis point then that could be a half million dollars that the developer doesn’t have to spend. If they were to finance a deal with the current rates then those guys will start tapping into the interest reserve buckets and project contingencies which is something you don’t want to do because you will spend all of your extra money and won’t have money for big surprises during construction. Even if you broke ground then value engineering starts so they can save money to pay off for other items.
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Any recent word from your avian friends about this project? If tenant leases were extended thru this month… maybe soon we’d hear whether the wait is going to be extended or what.
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I’m pretty sure this is on hold for like a year, waiting for better interest rates or market conditions or whatever blah blah blah excuse.
I think we’ll be lucky to have any news on this project moving along before the end of the year. I think most involved are still very much planning this to happen, it’s just a waiting game around interest rates and building material costs as I understand it.
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Oh ok so they’re just waiting for everything to be even more expensive, got it 
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So, this project had several permits issued on 6/26 for utility removal, driveway, and grading. So, it looks like they are going to clear the site. The building permit has not been submitted yet.
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It’s progress, I’ll take it.
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Or did Highwoods somehow get ownership of this property and will be bringing GlenSo its newest gravel parking lot???
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I was at Bittersweet on Friday and I shake my head every time I walk past ‘The Edge’ lot. Sitting on a prime lot in the middle of downtown.
Dang you Highwoods!
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https://www.highwoods.com/find-your-space/detail/the-edge
Make sure to reserve your space
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