Uptown Blog 2008 Uptown Forecast | Main Menu | ||||||||||
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| 2008 Uptown Forecast |
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2007 was an epic year for the Uptown. With over 600 new housing units being closed in 2007, the Uptown added two high-rise condominiums to its portfolio. Everywhere you look in the Uptown there are cranes. It has been said that the crane would be the state bird if the capital was moved to Charlotte. So what does the forecast look like for 2008?
In 2008 there won’t be many new developments closing out. Only two developments are expected to begin occupancy. The Quad is a 4-story 80 unit development in 1st Ward that will likely be closing in the 3Q of ’08. The Park is a 21-story condominium located in 2nd Ward with approximately 150 units to begin occupancy in 2Q ’08.
New residential developments will likely slow in ’08. I predict that there will be 2-3 new residential developments announced/begin sales in 2008. The commercial world will probably see about the same progress in 2008. It is more likely that the primary focus will be on progressing previously announced developments rather than creating new projects.
The two key words for the Uptown in 2008 are: Inventory Absorption. Out of the 300 or so closed units at Avenue Uptown (36-story 386 units) there are 46 units available for resale. Of the 200 units at Trademark, there are 18 units currently available. During the previous years, the average building sees approximately 10-15% of the inventory come back on the market for resale. Both of these buildings have fallen within the range of “normal” rate of resale. However, the available inventory in the resale market could hamper future development and sales in 2008 should it absorption be unusually slow.
The job market in the Uptown will likely be fairly stable. During 2007, the available commercial office space fell below 1%. This nationally historic low will likely help keep the Uptown job market stable. The banks and the national economy are a huge part of the Uptown market though. The recent move by Bank of America to purchase Countrywide will either prove to be a huge success or a dramatic failure.
The proposed land-swap and baseball park deal will likely make headway this next year. The baseball park will likely begin construction this next year as the pieces of the puzzle fall into place and the legal disputes are settled in the first part of ’08.
By the end of 2008, there will be several tall buildings nearing completion. Epicenter, Wachovia, NASCAR Hall of Fame, Ritz Carlton, and Bank of America tower will all be topping out by the close of the year. Interest rates on mortgages have been falling since the 2Q of ’07. It is likely that rates will continue to fall in ’08. Today you can secure a 30-fixed loan at a rate of 5.5%. By 2Q, expect to see that rate somewhere around 5%. |
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