Focus: Charlotte region, a place to be seen
CHARLOTTE IS HOME TO WORLD-CLASS BUSINESS AND ENTERTAINMENT
As home to two of the top 10 states for business (Area Development, 2023), the Charlotte Region is the nation’s most promising place for business relocation and expansion. From urban centers and vibrant business districts to pastoral landscapes with wide-open space, there’s plenty of land in the Charlotte Region, which has a gross regional product of $220 billion, more than half of the states.
More than 3,500 manufacturing companies are planted in the Charlotte region, and employment has grown at twice the national average since 2013, according to the non-profit Charlotte Regional Business Alliance, which offers domestic and international client services to make the region a melting pot of manufacturing, aviation, technology, financial and agricultural firms, many with foreign roots. According to the CRBA, an average of 117 people move into the region every day.
The business-friendly environment is home to tax credits, grants, workforce training and incentives that have led to business success across a wide range of industries. From small businesses and startups to Fortune 500s, the economy is driven by the smart, passionate leaders who call the Charlotte region home.
For example, the 350-acre North Carolina Research Campus in Kannapolis, a scientific research and development complex that studies nutrition and food’s effect on health, including cancer, diabetes, obesity and heart disease, opened its nonprofit Food Innovation Lab in 2019, which processes and packages N.C.-grown produce in various capacities.
And in the Charlotte region, electricity is 15% less expensive than the national average. Meanwhile, more than 50% of the power supply is from a carbon-free source, meaning sustainability and affordability should go hand-in-hand.
Situated between New York and Miami, Charlotte allows for easy access to the entire East Coast by rail or highway, Charlotte Douglas International Airport’s 180 nonstop flights and three major ports. More than 100 million people live within one trucking day, making it easy to move product exactly where it needs to go. In addition, the airport is the world’s seventh busiest in terms of passenger traffic and cargo shipments.
Still, to revive the center city and avoid a “ghost town” situation, city officials are considering supporting property developers through a combination of taxpayer funds and incentives.
The property getting the initial incentives spotlight is 526 S. Church St., which became Duke Energy’s headquarters when it opened in 1975, then called the Electric Center. The building was acquired for $35 million in December 2022 by Washington, D.C.-based MRP Realty and Charlotte-based Asana Partners. The developers plan to convert the 13-story office building into apartments or condos with retail properties on the first floor. The $280 million project would include a separate adjacent retail building.
In February, Assistant City Manager Tracy Dodson, who leads economic development efforts, pitched the incentive program for MRP and Asana to the Charlotte City Council, which gave tentative approval. She promised to provide more details in the next few weeks.
Dodson and city officials say the incentives program can increase the city’s tax base, provide public parking and community spaces and create jobs. If the proposal is approved, developers may set aside some spaces,
for affordable housing, while improving adjacent pedestrian areas.
Developers say incentives are needed to ease the hefty expense of converting office space to livable units. Having city financial aid also ensures that Charlotte officials have a voice in developers’ plans, potentially steering positive impacts.
“For office to multifamily conversions to be successful, the market rent has to be strong, the construction costs have to be manageable and the [cost] basis of the property has to be extremely low,” says Rob Cochran, senior managing director at Cushman Wakefield. “Given some of the current softness in the multifamily market, converting to residential will be difficult in downtown Charlotte right now.”
Most of all, the city wants to avoid empty buildings with declining property values, which depresses tax collections. Some former Uptown employers have moved a mile or two south to South End, often taking less space. Examples include the Alston & Bird law firm and Grant Thornton accounting business. The vacancy rate for newer South End offices is less than 12%, according to CBRE. 