ATLANTA—Although New York and Los Angeles are getting plenty of attention from investors, the Southeast is turning more heads as the recovery turns into a boom in some cities. GlobeSt.com caught up with Charles H. Williams, senior vice president and southeast regional manager at KeyBank Real Estate Capital, to get his perspective on the Southeast in part one of this exclusive interview. Be sure to come back to this afternoon's Southeast edition for part two.
GlobeSt.com: What are the dominant commercial real estate trends you are seeing in your region? What are you seeing on the ground? What's really happening in terms of emerging and growing trends?
Williams: More so than other regions, we're seeing greater national focus on the Southeast. Our clients are continuing to look closely at the Carolinas, Florida, and Georgia, in particular.
We're seeing more people moving away from the Rust Belt and towards areas like the Sunshine State and Carolinas. This population boom combined with the trend of Millennials postponing home ownership, the multifamily sector remains red hot.
GlobeSt.com: What sectors are hottest and what make them so hot?
Williams: Along with a strong multifamily market, the industrial sector in the Southeast is also seeing significant growth. As global trade continues to drive the sector, increased shipping volumes have resulted in a greater need for the storage of product.
Additionally, with the growing prevalence of e-commerce sites such as Amazon, there is a healthy demand for the development of more warehouse facilities. Currently, the Southeast well positioned to answer the need for these industrial spaces.
GlobeSt.com: What specific cities are seeing the most interest and why?
Williams: As more companies continue to operate globally, we're seeing high demand in what we would consider “international” cities. Areas such as Atlanta have increased demand for commercial real estate development thanks in part to its proximity to one of the busiest airports in the country.
Other major cities such as Nashville, Birmingham, Orlando and Tampa are evolving into employment hubs as their populations continue to grow. This has significantly helped bolster the multifamily development in each these areas.
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