Charlotte | Capital Analytics Associates

Spotlight On: Liz Babson, Director, Charlotte Department of Transportation

By: Felipe Rivas

2 min read November 2019 — As Charlotte continues to grow, the Department of Transportation is looking at ways to improve and innovate its transportation system. The department has been keen on leveraging capital investment with private development to build a safe transportation network for drivers, cyclists and pedestrians. Safety is a top priority for the department heading into 2020, said Liz Babson, director of the Department of Transportation, in an interview with Invest: Charlotte.

How has Charlotte’s transportation system kept up with economic growth in the past decade?

“Charlotte, like other major cities, is experiencing economic growth and is seeing the effects of that in its transportation system. We have seen congestion increase throughout the community. The city must look at multiple ways to solve and manage its transportation system. We put a lot of investment in transit and other transportation improvements and continue to manage congestion. In the last decade, we have seen a shift in the way we look at transportation investment throughout the city, not just on the transit side but making sure we are connecting our networks, such as our walkways and bikeways, and giving people a choice when they travel throughout the city. We are making a major shift from traditional roadway projects and single occupancy vehicles.”

What is the state of the transportation system in Charlotte?

“In the last few years, the state legislature was changed to reprioritize transportation investment throughout North Carolina. As a result, there is a tremendous amount of investment at the state level that is coming to Charlotte. Some $3.2 billion in state transportation investment is earmarked for this city. Those are projects that will improve the freeway systems throughout North Carolina. As your capacity increases in those facilities, it gives people more travel options to use Charlotte’s surface streets for local, short trips. We then have more capacity at the surface street level to improve the transportation system for cyclists and pedestrians.”

How is the Department of Transportation working with the private sector to speed up projects in Charlotte?

“We work to find ways to align our capital investment to where we know new development or redevelopment is happening. The Camp North End project north of Uptown and the River District are good examples where we anticipated the type of development and redevelopment we want to see happen and set aside capital investment dollars to partner up with investors and developers. It allows us to see projects developed quicker. The challenge is finding equitable and balanced ways to do that. We have always tried to be strategic with our partnerships; sometimes the private side is faster and more efficient.”

How is the Department of Transportation working with the community as Charlotte continues to grow?

“We are developing our 2040 Comprehensive Plan. We are engaging the community, elected officials and private partners in a way that we have not done before to look at how we want to grow as a community and how we will do that. We are engaging the community as we have those conversations, so they can understand the challenges and how we can work together as we head into the future. We are having those tough conversations in a meaningful way. This is an important undertaking for the city. It will be transformational for the city from an organizational structure and how we do our work and engage the community.”

How is the Department of Transportation using technology to improve transit operations?

“We have close to 850 traffic signals and close to 350 miles of fibers that communicate with 90% of those signals. From one central location, we can change signal timing for the entire city. That fiber infrastructure also manages our traffic camera system, which is comprised of around 450 cameras located throughout the city. It’s a shared system. We work very closely with the police and fire departments. Together we can make on the spot decisions that improve emergency response times and help get the roads cleared faster when there are bigger problems. We have the infrastructure in place to test and implement new smart traffic technologies. We are looking at the possibility of leveraging the connected traffic system with people’s smartphones to share information from the traffic signal operations with pedestrians who want to know when the bus is coming or commuters who want to know when the traffic lights will change. Those are the kinds of things we are starting to look at.”

What are the Department of Transportation’s priorities heading into 2020?

“We are working to do road projects that are transformational, as well as small, safety improvements to expand our safe and efficient transportation system for our cyclists and pedestrians. We are a Vision Zero city and are working toward no deaths or serious injuries on our streets by 2030. The goal allows us to take a data-driven approach when it comes to capital investments. We are continuously looking for opportunities to leverage private development with capital investment to build a safe transportation network. There is a real intentional focus to improve the safety of our cyclists and pedestrians.”

To learn more about our interviewee, visit: https://charlottenc.gov/Transportation/

Big Reveal: A New Look for Charlotte’s Main Library

By: Felipe Rivas

2 min read November 2019 — In the information age, knowledge is power. As Charlotte continues to attract top-level companies and talent across multiple industries to the region, Mecklenburg County wants to provide Charlotteans a sleek, modern, and highly technological space to study, learn, and absorb information. The Charlotte Mecklenburg Library unveiled the design plans for its new $135 million, 115,000-square-foot Main Library in Uptown Charlotte. The design features five levels and one lower level, two outdoor terraces, immersive theaters, conference rooms, and a revamped Robinson-Spangler Carolina Room. The plans were revealed two days after voters rejected an arts- and education-related sales tax increase.

The new Main Library will be made possible via a public-private partnership. According to the Charlotte Mecklenburg Library, the county has committed $65 million to the project. The library’s foundation will raise the remaining $70 million through a new campaign, called CommonSpark. Reportedly, the Knight Foundation pledged a $10 million donation to the new library on Thursday. Demolition is slated for 2021, with an expected completion date of 2024.

The plans for the new Main Library come after Mecklenburg County voters rejected a 0.25% sales tax increase that would have funded art, education, parks and more for Charlotte. If passed, the sales tax would have increased from its current 7.25% to 7.5%. Sales tax advocates, which included the Charlotte Regional Business Alliance, estimated the tax would raise around $50 million a year for arts and education-related initiatives.

Though voters rejected the sales tax, the new library is part of the vision for Uptown Charlotte as the area continues to develop. “The new main library will be an architecturally-distinctive, state-of-the-art, technologically-advanced knowledge center and public commons, where everyone in our community can access the resources of a 21st-century library,” said Charlotte Mecklenburg Library CEO Lee Keesler in a press release. “The new Main Library helps further our mission to improve lives and build a stronger community by strengthening public engagement, supporting economic opportunity and connecting community resources.”

The Charlotte Mecklenburg Library system is comprised of 20 libraries and it serves more than 1 million residents, according to its website. The Main Library design plans account for a job training center, counseling services space, along with the core technology and maker space offerings, including a technology center, computer lab, digital visualization lab, and recording studios. Two outdoor terraces will overlook Tryon Street and Uptown Charlotte, giving visitors a front-and-center look at the transformation of the area.

For more information visit:

https://cmlibrary.org

Spotlight On: Brett Gray, Managing Principal, Cushman & Wakefield

By: Felipe Rivas

2 min read November 2019 – In the last few years, the Charlotte Metro Area has enjoyed consistent growth, thanks largely to its strong banking sector. As the region continues to grow, Charlotte’s economy is diversifying and attracting large companies that need commercial real estate solutions. In a recent interview with Invest:Charlotte, Cushman & Wakefield Managing Partner Brett Gray talks about the state of Charlotte’s real estate market, use of technology to improve client needs and his outlook for the region heading into 2020.

How is Cushman & Wakefield addressing the growth of the Charlotte metro area?

We are organized across a suite of services with specializations that directly tie to Charlotte’s explosion as a high growth city. These services include Capital Markets, Tenant Representation, Landlord Representation, Project & Development Services, Asset Services, Facility Management, Valuation and Advisory Services and Consulting to name a few. Under each of those service lines, we have additional services that clients can tap into for all of their needs.

This is a thriving city. It has often been thought of as a secondary market, but it’s practically a regional hub that’s led by the banks. That has been the driver for development since the 1980s. It is essential for us to have key leaders in this space to help grow. For example, we have one of our National Emerging Tech Advisory Group members here in town, which is important as tech has been a big part of Charlotte’s recent growth. Our Multifamily National Practice Co-Leader sits here, our Southeast Valuation and Advisory leader is here. These are just a few examples that show our commitment to this market and the depth and breadth of our resources and services.

How is Cushman & Wakefield implementing new technologies to address client needs and provide better service?

Cushman & Wakefield’s property technology (PropTech) strategy focuses on strategic partnerships across our global platform with a variety of organizations, including Fifth Wall, MetaProp NYC, Plug and Play and 1871. The firm recently entered into technology relationships with innovative companies like Saltmine and Reonomy. It is essential for us to partner with organizations to identify technology that will disrupt our industry. PropTech drives efficiencies ensuring Cushman & Wakefield evolves quickly in this ever changing environment to deliver excellence to our clients. It is our responsibility to drive the latest solutions to them as their advisor.

How is Cushman & Wakefield addressing growth while preparing for a potential recession?

We’ve seen some inverted yield curves, and while the curve is a good historic warning sign of a recession, it doesn’t mean it’s right on the edge. The difference is that consumer confidence, which makes up 70% of the economy, continues to rise. Government spending remains strong. You’ve got a record unemployment rate continuing at an all-time low. You’ve got wage growth. As long as we continue seeing wage growth and low unemployment numbers, with consumers making up so much of that, we feel really good about where we are. We don’t see anything happening in the next year and a half to two years, but we continue to advise clients to be aware. We take a look at the “what if?” models out there. If a recession happens, what will happen? We’re always looking at those things, but right now we feel really good.

How does Cushman & Wakefield view the commercial real estate landscape?

If you look at the past 12 months like a report card, it’s arguably the most exciting time in the history of Charlotte. We look out everyday to cranes looking into our windows, and you see the growth of the light rail happening. The airport is expanding. The logical places of growth are emerging. It followed predictable patterns, where before some of the wealth was concentrated, but now you’re seeing emerging corridors appear. Opportunity Zones help drive some of that investment. Companies are selling their properties for record prices, and moving into emerging corridors. When you think of a big city, you put a dot in the middle of the city and there are no gaps expanding outward a mile or two. Charlotte still has some opportunity to develop around those gaps, and you’re starting to see that happen.

To learn more about our interviewee, visit: http://www.cushmanwakefield.com/en

5 Spooktacular Halloween Attractions You Can’t Miss in Charlotte

By Felipe Rivas

2 min read October 2019 – Charlotte is attracting companies, large businesses, and families looking to enjoy everything it has to offer. This Halloween, the Queen City will likely attract pirates looking to loot the area for candy, as well as its fair share of roaming ghosts, ghouls, superheroes and villains ready to enjoy the many events happening in the area. From kid-friendly activities to parties to fear-induced screams, here are our favorite creepy attractions happening this Halloween.

The City of Concord and its merchants will open the doors to its bite-sized residents during its Candy Crawl 2019. The little ones can enjoy a safe environment as they strut their favorite costumes and parade down Union Street in Downtown, Concord, looking for their favorite pieces of candy. Local merchants will provide trick-or-treating and a family-friendly environment for an evening of fun for the entire family. The Candy Crawl is happening Thursday, Oct. 31 from 3 p.m. – 5 p.m.

This Halloween, Charlotte will be filled with so many frightening sights sure to scare the sleep out of most, including Freddy Kreuger. For those wishing to take a break from the fright, a bar crawl is a sure bet to relax and enjoy Charlotte. The Nightmare on College Street is Charlotte’s largest bar crawl and on Halloween guests can enjoy six outings to local bars for one price. The night starts at Lucky’s Bar & Arcade then it is off to Vida Vida, Blackfinn,Whisky River Rooftop 210 and Suite for a night of spooky fun. Registration starts at Lucky’s Bar & Arcade from 6 p.m. – 8 p.m.

Undoubtedly, petrifying monsters will control Charlotte this Halloween and Petra’s Piano Bar is looking for the scariest of them all. All monsters should head to Petra’s Annual Halloween Bash as they might leave $100 richer. Petra’s is hosting its famous costume contest with a cash prize for the scariest monster of them all. Live music, dance party and cocktails will be part of the celebration. It takes place Thursday, Oct. 31, 2019, from 8 p.m. – 2 a.m.

If you believe you have a strong bladder, this place will put it to the test … and they are waiting for you. Located in Mooresville, Scarrigan Farms turns its 170-acre farm into one of the scariest haunted trails in the Charlotte Metro Area. Filled with clowns, hockey-masked machete-wielding psychopaths, and countless other frightening sights, Scarrigan Farms makes it their mission to scare the pee out of their visitors, really. Their motto: “ If someone hasn’t peed in their pants by the end of the night we know we haven’t done our job.” Do you dare to find out? Bring a diaper just in case.

Aside from the fun, candy and parties and haunted houses, Charlotte offers a rich history for sleuths and thrill-seekers to discover. Carolina History and Haunts presents Beyond the Grave, a lantern guided tour that explores sites where they say past inhabitants are still seen lingering around. The tour takes the valiant and curious through Charlotte’s most famous and infamous landmarks as it recounts hair-raising tales native to the Charlotte area. The tour is open year long but it takes special courage to experience it during Halloween.

To learn more visit:

Candy Crawl 2019: https://charlotte.kidsoutandabout.com/content/candy-crawl-2019-concord-nc

The Nightmare on College Street: https://luckycharlotte.com/

Petra’s Annual Halloween Bash: http://petrasbar.com/event/petras-annual-halloween-bash/

Scarringan Farms: http://www.scarriganfarms.com/

Carolina History & Haunts: https://www.carolinahistoryandhaunts.com/Charlotte_home.html

Spotlight On: Jeffrey Mylton, Charlotte Market President, HomeTrust Bank

By Felipe Rivas

2 min read October 2019 — The Charlotte Metro Area is home to a plethora of banks and financial institutions. While local and nationally-recognized banks provide similar services, many residents prefer to go to a local bank for their banking needs. HomeTrust Bank is a local bank keen on providing personalized service to its clients. In an interview with Invest: Charlotte, HomeTrust Bank Charlotte Market President Jeffrey Mylton talks about the advantages of local banks, the challenges they face, its relationship with the local business community and the outlook for Charlotte’s banking sector.

How would you describe the bank’s trajectory since entering the Charlotte market five years ago?

It has been a nice steady climb. We have added new relationship managers who are more in line with midmarket-type lending. We’ve also added several new divisions, one of which is equipment finance and the other is our SBA division, as well as a larger, more robust residential mortgage area. Two of the three divisions are headquartered here, as opposed to our headquarters in Asheville, so the bank realizes where a lot of the growth will come from over time.

What advantages does the Charlotte market provide over bigger national banks?

I would say a lot of customers are looking for personalized service. Just about every big bank has small business lending somewhere else. You come to them locally, but the approval process is out of the market. We provide the speed, flexibility, and personal service that a big bank can’t provide.

What will your partnership with fintech company AvidXchange accomplish?

A client that would take advantage of AvidXchange would have to be processing a lot of transactions. That’s more of a middle-market company, which is the type of company we are seeking in that middle-market segment where we would like to be more prominent. It’s a way to get our name out and have people realize our capabilities are just as good as the bigger banks.

What are the greatest challenges facing community banks in Charlotte?

A lot of community bank growth has been done by boosting the balance sheet with real estate. I think everybody understands you have to be diversified. You have to have a deposit base in order to lend. Real estate’s great, but you can’t do everything with real estate. There are so many more business opportunities for a bank when it is servicing business customers.

As this market grows, people are looking for a bank that can satisfy their needs. Other than a few things that a big bank does, such as mergers and acquisitions, we can do what they can do. Most of the time we can provide it either more efficiently or less expensively.

We’ve seen just about all but about two community banks disappear here in Charlotte, but you’re also seeing big growth in credit unions. I think the reason that they’re becoming so active is because of the void of community banks. People would rather deal with a personal relationship where somebody locally cares. Big banks don’t provide that. So you’re seeing us thrive as one of the few left, as well as the credit unions.

How can regulators or economic engines like the Charlotte Regional Business Partnership help address some of those challenges?

They are directing attention to a need. They’re attracting customers and business to the city, which gives us an opportunity to do business. When those companies come here, they are looking to work with someone that actually works and makes decisions locally. Many large banks don’t make business decisions here.

How is HomeTrust responding to the emerging millennial market and the demands of this generation?

Whether it’s remote data capture, creating our app so you can do all your banking services on your phone, or Popmoney, where you can transfer money between different accounts, those are all things that can continue to evolve. And as they evolve we continue to make sure we have what we need to be competitive.

What’s your outlook for the finance sector in Charlotte and what emerging businesses are you involved with?

There are so many multifamily projects being done. Opportunities are there for all residents of these multifamily projects to be banking customers. We aim to serve all customer segments, millennials to retirees, as well as small to middle-market companies.

As for emerging businesses, we have relationships with quite a few of these types of companies. Those that are involved in cloud computing, data centers, and related businesses in fiber optics. Technology and digital businesses just keep changing, but we’re active on all fronts. We have quite a few cloud computing-related businesses.

To learn more about our interviewees, visit:

https://www.htb.com/

Charlotte Rising to Tech Challenge Related to Emerging Workforce

By Felipe Rivas

2 min read October 2019 – The business world was abuzz earlier in October when American conglomerate Honeywell broke ground on its new global headquarters at Legacy Union in Uptown Charlotte. Honeywell, a diversified engineering and technology giant, is the latest example of a large company flocking to the Queen City looking to expand and grow, and local leaders are doing their part to ensure success. As the economy in the Charlotte Metro Area continues to diversify, educational and economic development leaders are working to equip the workforce to thrive in the tech-based jobs coming to the area.

Historically, Charlotte has been the second-largest banking capital of the United States, but that is broadening, said Queens University of Charlotte President Daniel Lugo. “The most exciting part is the growth of the technology sector. Charlotte is a hotbed for technology right now,” Lugo told Invest: Charlotte. “Those with strong technical skills, with an understanding of how to use data in powerful ways, how to visualize data, and how to use data to predict outcomes are going to have huge advantages,” he said.

The university is placing a keen emphasis on producing talent that has a robust understanding of coding and data analytics. “The city and area is creating tech jobs at double the national rate and we want to be at the forefront of working with those businesses,” Lugo said.

That means taking a community-first approach in its efforts to empower talent with tech-based skills. Its program, Digital Charlotte, aims to reduce the area’s digital divide by connecting community members to the internet and increasing their web literacy. “We are perfectly positioned to be the preeminent private university of the city and of this region, building a talent pipeline to meet the needs of a growing city’s changing economy,” Lugo said.

In Gaston County, 30 minutes away from Charlotte, economic development leaders are already experiencing spillover from Charlotte’s growth and preparing its workforce for incoming manufacturing and tech-based jobs. “For Gaston, it’s all about the Charlotte market, tapping into it and knowing what their needs are,” said Gaston Regional Chamber CEO Steve D’Avria.

“The biggest set of industries coming in are the advanced manufacturing sectors because our labor is more affordable,” D’Avria told Invest: Charlotte.

The chamber is focusing on education by supporting accelerated college programs for Gaston County’s high-school students, as well as programs at Gaston College centered on business and information technology career tracks and certificates. “Education has been one of our focuses,” D’Avria said.

Connecting students and workers to jobs to practice their tech skills while they are in school is another chamber priority. “Around 60% of our members are small businesses, so we’re a connector of resources in the community,” D’ Avria said. “We’re also expanding into the co-working space in Gastonia. In Belmont, we have a program called Gaston Tech Works, and it’s all technology-focused.”

To learn more about our interviewees, visit:

https://www.queens.edu

http://www.gastonchamber.com

Capital Analytics Shines a Spotlight on Charlotte

Invest: Charlotte to highlight key investment opportunities in the city

September 2019 – FOR IMMEDIATE RELEASE

Seasoned media firm Capital Analytics has chosen Charlotte as the next destination to launch a focused annual report on investment opportunities offered by the city. Invest: Charlotte will bring together key industry leaders across the public and private sectors to provide commentary on Charlotte’s rise as an attractive investment destination in recent years.

Entering its sixth year publishing the highly praised flagship project Invest: Miami, Capital Analytics identified Charlotte as the next key market in its portfolio annual economic reports. This newest edition will focus on the growing importance of Charlotte as a business hub and spotlight opportunities for investment.

Capital Analytics’ successful Invest: Miami venture allowed it to establish footholds in Atlanta, Greater Fort Lauderdale, Philadelphia, Tampa Bay, Palm Beach and Orlando, and the company has high expectations for its Charlotte undertaking.

“This business intelligence publication will complement the other publications we produce in the region. The strength of Charlotte’s diversified economy in transportation and logistics, sports and energy combined with the city’s status as a major U.S. financial center create an encouraging environment for further investment,” said Jack Miller, Regional Director at Capital Analytics.

The Capital Analytics team has already started laying the groundwork for Invest: Charlotte and is looking forward to replicating its success in other markets, speaking to high-profile executives and leaders of key organizations in the area. This will be the most comprehensive independent report available on Charlotte’s vibrant business climate, seen through the eyes of those at the forefront.

North Carolina’s Gross State Product (GSP) is expected to reach $589.8 billion by the end of the year. Charlotte has a high level of education, with 15 research universities and 300,000 students, meaning new high-paying jobs in tech and science are opening up. Add to that a local government that understands the importance of attracting investment and Charlotte is the perfect place for investors to focus their attention.

“At Capital Analytics we are excited to begin conducting interviews and compiling research on the Charlotte market in anticipation of the first edition of Invest: Charlotte,” said Miller. “We look forward to discussing Charlotte’s opportunities and challenges with local public and private sector leaders over the months to come.”

Capital Analytics produces in-depth business intelligence with a focus on providing comprehensive investment knowledge on markets within the United States for the domestic and global business community. Over a six-month research period, it meets with more than 200 top political, commercial and industry leaders to deliver targeted information, in-depth analyses and strategic insights to the global business community on economic trends and investment opportunities.

Its first publication, Invest: Miami, has a global readership and includes among its readers top executives working in real estate, finance, technology, trade and logistics, health, hospitality and others. Books are distributed locally, nationally and globally to trade and investment boards, executives of Fortune 500 companies, institutional investors, consulates and embassies, hedge funds, leading chambers and associations, as well as high-level summits and conferences.

For more information contact

contact@capitalaa.com

TEL: 305-523-9708

Big Banks’ Long-Term Investment Vision for Charlotte

Writer: Sara Warden

2 min read AUGUST 2019 — Charlotte has long been the eastern hub of Bank of America (BofA) and is one of the headquarters of Wells Fargo. But this year it has been attracting attention from the third bank belonging to the Big Four, which together hold around 45% of total U.S. deposits. JP Morgan Chase announced earlier this year that it will add up to 21 branches in Charlotte in the next three years.

“We’ve been serving the Carolinas for more than a decade and opening branches allows us to lend to more consumers and small businesses, and offer good paying jobs,” Thasunda Duckett, CEO of Chase Consumer Banking, said in a press release.

JP Morgan Chase will be entering a market where many are seeing huge potential. In April this year, U.S. Bank announced it will open 10 branches in the city by 2020. The bank, which emerged from the $66 billion merger between BB&T and SunTrust, will also be headquartered in Charlotte.

Despite Wells Fargo and BofA controlling around 89% of the area’s deposits, the new entrants seem confident there will be a big enough piece of the pie for them to get their teeth into. “This expansion marks a major milestone for our firm by allowing us to serve more customers, small businesses and communities across the country,” said Duckett. “To us, this is so much more than building branches. This is about new customer relationships, better access to credit and local jobs.”

Charlotte is home to 425 corporate headquarters in the finance industry. At 2.5%, the city has the lowest corporate tax rate in the country. For three years consecutively, North Carolina’s annual residential growth has exceeded 100,000 people.

“I don’t think there’s any industry that’s having an easy time staffing with the kind of human capital that they need, so one of North Carolina’s biggest advantages right now continues to be population growth,” says Christopher Chung, CEO of the Economic Development Partnership of North Carolina told WeWork publication FiveThirtyEight.

Charlotte’s finance industry is the second-largest banking hub in the country behind only New York City, with banks holding more than $2.3 trillion in assets. The city has added more than 200,000 jobs since 2001.

“We’ve built a great city that helps companies attract and retain today’s best talent,” Frances West, business recruitment and retention leader in Charlotte’s Economic Development Office, said to FiveThirtyEight. “Where we are today is not by happenstance and where we will be in 10 years is not by happenstance — it’s all by intentional growth.”

And the financial institutes have Charlotte in their crosshairs for the long run. U.S. Bank announced it reached an agreement with the city’s authorities this month to be the lead sponsor of a delayed pedestrian bridge project that connects Charlotte’s uptown and South End. U.S. Bank will contribute $1 million to the $11 million infrastructure project.

“Bridging the gap between uptown and South End will provide additional connectivity for residents, workers and guests, while further knitting together two of our great urban neighborhoods,” Michael J. Smith, CEO of Charlotte Center City Partners, said in a press release.

To learn more about the companies mentioned, visit:

https://www.charlottecentercity.org/

https://charlotteregion.com/eco-dev/charlotte-regional-business-allianceeconomic-development/

https://edpnc.com/

Charlotte Demographics Catalyze Office-Space Boom

Writer: Sara Warden

2 min read AUGUST 2019 – Charlotte is gaining more than 1,000 new residents a week, according to the 2017 Census. In the second quarter of 2019, Charlotte added 26,700 new jobs and kept unemployment down, at around 3.7% on the year. By 2050, another 1.8 million people and nearly 1 million more jobs will be added.

Research has shown that Charlotte is able to attract younger generations due to its affordability and quality of life. Cincinnati-based Growella conducted research on the friendliest cities for under-35s, measuring indicators such as entry-level job availability, time spent commuting and strength of paycheck, and Charlotte came out No. 5, with an A grade.

“With a growing tech workforce, a booming financial industry and a strong millennial growth rate, Charlotte is poised to be a forerunner of economic expansion not only in the Southeast but in the United States,” said real estate firm Cushman & Wakefield in a report on the city.

Charlotte ranked seventh in Growella’s research for strength of paycheck, which indicates how high salaries are compared with the cost of living. The city also boasts solid infrastructure, transport links and a dynamic nightlife. With characteristics that allow it to entice more of the young workforce, Charlotte is becoming a titan in attracting disruptive industries, such as tech and innovative financial services.

The predominant US tech hub is undoubtedly Silicon Valley in San Francisco. But it seems more and more startups are looking to more affordable cities that have favourable demographics. The frontrunner is Charlotte.

One company that decided to headquarter itself in Charlotte is SmartSky Networks, which aims to transform aviation using disruptive technologies. Another is Passport, a provider of digital parking software. MapAnything, Sitehands, PeraHealth and many others have also chosen Charlotte to lay down roots. This is all serving as a boon for the city’s real estate industry, and office space in particular.

At the end of the second quarter, Charlotte’s average rental rates increased 13% on the year, above markets such as San Jose, California, which saw an 11.8% rise and even the home of Silicon Valley, San Francisco, which saw a 9.4% increase.

But even though property is rapidly increasing in value, it is still far more affordable than many business hubs, making it a no-brainer investment opportunity for many forward-thinkers. “Rent as a percentage of household income is still substantially below the likes of much larger cities like Boston, Chicago, Seattle and Miami,” said Dave Welk, Director of Acquisitions of private equity real estate firm Origin Investments in an article written for the company.

Nearly 5.1 million square feet of office space is under construction in Charlotte, the majority in the Central Business District (CBD). Most recently, real estate investors The Spectrum Companies and Invesco teamed up to break ground on a 577,000-square-foot mixed-used development in Charlotte’s CBD that will eventually house two 11-story office buildings.

As demand drives up prices, existing assets are also selling for eye-watering amounts, with the top five transactions so far this year totaling $855 million.

“As space is leased and rental rates continue to rise, owners are expected to sell properties for record-high amounts as Charlotte demonstrates it is a viable and highly sought-after investment market,” said Cushman & Wakefield.

Spotlight On: Liz Babson, Director, Charlotte Department of Transportation

Big Reveal: A New Look for Charlotte’s Main Library

Spotlight On: Brett Gray, Managing Principal, Cushman & Wakefield

5 Spooktacular Halloween Attractions You Can’t Miss in Charlotte

Spotlight On: Jeffrey Mylton, Charlotte Market President, HomeTrust Bank

Charlotte Rising to Tech Challenge Related to Emerging Workforce

Capital Analytics Shines a Spotlight on Charlotte

Big Banks’ Long-Term Investment Vision for Charlotte

Charlotte Demographics Catalyze Office-Space Boom

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