ATLANTA—Despite talk of recession and rising interest rates, opportunities abound in the Southeast's commercial real estate market. The numbers simply don't lie.
GlobeSt.com caught up with KC Conway, senior vice president of SunTrust Bank, to understand what he's seeing in the market in the final installment of this exclusive interview series. You can still read the last segment: What This Banker is Most Optimistic About.
GlobeSt.com: What opportunities do you see in your market?
Conway: There is an abundance of opportunity in the Southeast US. To begin with, the Southeast now generates more of the US $18.1 trillion in GDP—21% of $4 trillion—than any of the other six regions according to the Bureau of Economic Analysis.
That GDP activity is fueling the job growth and resulting demand for new housing and commercial real estate in the Southeast US. Figuring out the ultimate housing need for Millennials is a neat puzzle to unravel. Will they continue to rent being a “Uber Generation” that prefers to time-share or rent everything from cars to homes and jet skis to golf clubs?
The remaking of the North American supply chain and the impact on Southeast and Gulf coast ports is going to be huge. We already see it at ports like Savannah, Charleston, and the up and comer port of Mobile where Airbus is manufacturing its new commercial aircraft to compete with Boeing's being built in Charleston SC.
In other words, I see the most opportunity in housing and industrial real estate. Office is a value-add play as economic rents still don't justify new office construction in most Southeast MSAs, except maybe Miami.
And multifamily is going to be an interesting story not just defined by the Millennials, but Baby Boomers as well. Boomers are discovering that “uberization” is a very cost effective way to go compared to ownership of second homes and stuff cluttering up the two-car garage in the family home in the suburbs.
GlobeSt.com: How are you leveraging those opportunities?
Conway: As a senior credit executive at a top-10 US bank I can't really comment, especially with earnings release within 30 days.
Atlanta is Booming. Are You In The Know? Join us at RealShare ATLANTA on April 28 for impactful information from the leaders in Atlanta CRE.
ATLANTA—Despite talk of recession and rising interest rates, opportunities abound in the Southeast's commercial real estate market. The numbers simply don't lie.
GlobeSt.com caught up with KC Conway, senior vice president of
GlobeSt.com: What opportunities do you see in your market?
Conway: There is an abundance of opportunity in the Southeast US. To begin with, the Southeast now generates more of the US $18.1 trillion in GDP—21% of $4 trillion—than any of the other six regions according to the Bureau of Economic Analysis.
That GDP activity is fueling the job growth and resulting demand for new housing and commercial real estate in the Southeast US. Figuring out the ultimate housing need for Millennials is a neat puzzle to unravel. Will they continue to rent being a “Uber Generation” that prefers to time-share or rent everything from cars to homes and jet skis to golf clubs?
The remaking of the North American supply chain and the impact on Southeast and Gulf coast ports is going to be huge. We already see it at ports like Savannah, Charleston, and the up and comer port of Mobile where Airbus is manufacturing its new commercial aircraft to compete with
In other words, I see the most opportunity in housing and industrial real estate. Office is a value-add play as economic rents still don't justify new office construction in most Southeast MSAs, except maybe Miami.
And multifamily is going to be an interesting story not just defined by the Millennials, but Baby Boomers as well. Boomers are discovering that “uberization” is a very cost effective way to go compared to ownership of second homes and stuff cluttering up the two-car garage in the family home in the suburbs.
GlobeSt.com: How are you leveraging those opportunities?
Conway: As a senior credit executive at a top-10
Atlanta is Booming. Are You In The Know? Join us at RealShare ATLANTA on April 28 for impactful information from the leaders in Atlanta CRE.
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