Raleigh, North Carolina.  No It’s Not College Football or Basketball.  It appears that if you want to be certain that people will read what you have to say you have to provide a list of the 10 best, 10 worst, 10 most expensive, etc.  Despite all the gloom and doom about the economy, the housing market, automobile sales, skyrocking gasoline prices (looks like I could make a list of the 10 most depressing factors facing our economy and most individuals) there are areas where the sun shines a little brighter than in others.  Forbes did an article about - America’s Recession Proof Cities. I think that title is a little much but it does point out that some areas are still doing pretty well.  Raleigh has, for quite a number of years, been blessed to be at or near the top of a lot of lists regarding jobs, home sales, breadth of business climate to name but a few. Not long ago I mentioned that Raleigh was among Forbes Magazines 10 favored cities. The blessed 10, per the current article, are Oklahoma City, San Antonio, Austin, Houston, Charlotte, Dallas, San Jose, Raleigh, Salt Lake City and Seattle.  Forbes looked at umemployment, job growth in non-farm payrolls, construction, health services, financial activities, education, leisure and hospitality, natural resources, manufacturing, transportation and utilites, professional, business services and they considered which areas posted the best gains in median home prices.  They also looked at how the productivity level of each city would be impacted by declining home prices and increasing foreclosures.  When all these factors were taken into consideration the cities that came out best were the above named ten. 

Texas had four of the top ten because of historically lower home prices, the availability of land, less zoning restrictions and an energy market risen, like the Phoenix, from the ashes.  Also, all four cities had declining unemployment rates.  Various factors were responsible for the favored position of the other top ten cities.  What caused me to bring this up again, in particular, is how true the old saying is that “what goes around comes around.”  Much of the southwest has had a long period of not enjoying the sunshine much of the rest of the country was enjoying because of problems in the oil patch.  Declining oil production, declining jobs in the oil industry and the availability of “cheap foreign oil” all conspired to do a lot of hurt to those areas.  Well, the chickens have again come home to roost.  The price of foreign oil is doing a number on all parts of this nation but at least the demand for the oil we produce is doing wonders for the businesses that are both directlly and indirectly involved in it.  So, if people in Texas, Oklahoma and a few other places are inclined to enjoy their time in the sun it is to be understood.  While none of us like what is going on at the pump one can hardly begrudge the folks that work in the various oil and energy related businesses their reviving prosperity.  Oklahoma city is prospering not only in the energy area but in agriculture and manufacturing as well.  It was great to see how well they supported the   NBA team “on loan” to them from New Orleans.  They should be next in line for a franchise of their own and at the moment that looks like it might be Seattle. 

John Fish (919) 696-3474  Email: Marvmax@mindspring.com   Website: www.JohnFish.com 

Cisco Growth Continues.  The company is upfitting their last unoccupied building in Research Triangle Park.  The price tag for this expansion is $23 million.  During the last three years the company has added nearly 1,200 employees which brings their total in the Park to to 4,500.  Of these about 80 percent are full-time employees while the other 20 percent are contract workers.

Oppenheimer & Co. says that of all the network equipment makers Cisco is in the best operating position at the present time.  They are realizing growth through increasing sales and acquisitions all around the world.  They are planning a campus in Bangalore, India that will employ 10,000 people and cost a tidy $1.1 billion.

John Fish (919) 696-3474   Email: Marvmax@mindspring.com   Website: www.JohnFish.com

Triangle, North Carolina.  A Renter’s Market On The Way?  Some indicators say Yes - some indicators say No.  After looking at the items on both sides of the ledger you can flip a coin and make your choice.  * The Triangle labor force slowed to a plus 1.5 percent during the last 12 months  * Also, during the last 12 months 3,647 new apartment units came on the market  * In the Triangle companies are reducing and delaying expansion  * At the end of March the area had 91,800 apartments.  At the same time 9.2 percent of them were empty  * Units under construction total 3,687 while, at the same time, the number of unsold homes continues to increase  * Tighter lending requirements, people moving out of homes and into apartments and renters staying in apartments longer indicate it should be a good market for landlords.  Place your bets ladies and gentlemen.

John Fish (919) 696-3474   Email: Marvmax@mindspring.com   Website: www.JohnFish.com 

Triangle, North Carolina.  Office Space Demand Strong.  Yesterday I reported the dramatic drop in purchases of office properties in the Triangle during the first quarter of this year vs. the first quarter of last year.  Again, it should be pointed out that much of that drop was caused by inability to get financing on the part of many interested buyers.  None-the-less, the flip side of that coin is the demand for office space by end users.  It was surprisingly strong during this year’s first quarter.  At the end of the first quarter only 12.5 percent of the Triangle’s offices were empty.  That is down from 13 percent at the end of the fourth quarter of 2007.  Furthermore, class-A rents jumped 10 percent from the year ago quarter.  The first quarter of the year is usually the slowest leasing period of the year and yet leasing activity was quite strong. 

Is there a cloud lurking on the horizon?  There is 2.7 million square feet of office space currently under construction.  That’s the highest first quarter total in more than 10 years.  Commercial property managers had problems getting deals closed last year while this year the deals are being closed relatively promptly.  That doesn’t mean that every area in the Triangle is strong.  Some are and some are soft.  However, overall the leasing of office space in the Triangle is going very well.

John Fish (919) 696-3474   Email: Marvmax@mindspring.com   Website: www.JohnFish.com 

North Carolina - Hispanic Population Increased 7.8 Percent In 2007.  More specifically an additional 46,266 called North Carolina Home during the year.  The state’s total of 640,000 make Hispanics the state’s second largest minority group.

CARY - DETROIT PARTNERSHIP BUYS CROSSROADS PROPERTIES       Four Buildings And 20 Acres Comprise The Package.  The purchaser, MayfieldGentry Realty Advisors, paid $56.8 million in behalf of a retirement fund for Detroit fire and police employees.  The buildings, Crossroads I-IV, have a total of nearly 400,000 square feet.  This price is equal to about $145 per square foot.  The buildings are 95 percent occupied.  Another $2.2 million was paid for six tracts that are zoned for shops, hotels or offices. 

The difficulty potential buyers of properties are having in lining up financing for purchases they would like to make is dramatically shown by the fact that only $27.6 million in offices were sold in the Triangle during the first quarter of 2008.  During the first quarter last year $456 million were purchased.

John Fish (919) 696-3474   Email: Marvmax@mindspring.com   Website: www.JohnFish.com

Raleigh, North Carolina.  Four Partnerships Buy 32,000 Sqare Foot Crabtree Office Building.  The buyers are three Greensboro partnerships and one Durham partnership.  The seller is the Narigant Investment Group.  The buyers plant to attract tenants and reduce operating expenses by making the building meet the U.S. Green Building Council standards in Environmental Design and Energy.  A further attraction for both the investors and potential tenants is the building’s prime location at the corner of U.S. 70 and Creedmoor Road.  It is across the street from Crabtree Valley Mall and will soon be under the shadow of the 42 story Soleil Center which is under construction just West of it.  Other buildings are to be built in the immediate area as well.  Tri Properties, a Durham commercial real estate services firm, will handle the building’s renovation and then manage it.

John Fish (919) 696-3474   Email: Marvmax@mindspring.com   Website: www.JohnFish.com

Raleigh, North Carolina.  Phase I Of Wyndcroft Offers 8 Specs In North Raleigh. The Wyndcroft builder group consists of Mike Houseman, Jerry Wagoner and Larry Smith.  All of these builders have many years of building experience and are well known throughout the Triangle.  The subdivision has 48 wooded lots that range in size from half an acre to one acre.  Wyndcroft is located close to the intersection of Strickland and Ray Roads.  The initial inventory offers Craftsman, European and Classic Traditional style homes.  THe exteriors are brick, stone and shake.  Screened porches allow home owners to enjoy views of the areas 3 acre pond. 

Interior home features include 9 and 10 foot ceilings, hardwood floors, extensive millwork, custom cabinetry and granite counter tops.  All homes have either a first floor guest suite or master bedroom.  The prices of the specs ranges from $700,000 to $840,000.  More specifically, Mike Houseman has three offerings.  3932 Bending Birch Drive is a story and a half design that has 4 bedrooms, 4 1/2 baths, first floor master, formal dining room, huge game room (34 x 20), 3 car garage, open kitchen and family room, gas fuel, city water and sewer, granite counter tops and comes in at $699,900.  His second offering is a two story traditional at 3921 Bending Birch Drive.  It has double front porches, 3 side brick, 3 car side-load garage, formal living & dining rooms, kitchen with island, screened porch, 22 x 15 second floor master, large family room and granite counter tops all on a lot of over half and acre and at $759,900.  His third offering is at 3905 Bending Birch Drive.  It is a brick and stone two story home with two story foyer, formal living room with fireplace, formal dining room, 2 staircases, 3 car side load garage, main floor master, kitchen with large island and bar top counter, open family room, natural gas fuel, city utilities, lot of over half an acre, 4 bedrooms, 4 full and two half baths and 4437 square feet. The price is $834,900.

Jerry Wagoner’s home is at 3906 Bending Birch Drive.  It is three sides brick with the balance fiber cement.  Size - 4100 square feet.  First floor guest suite, 4 bedrooms, 4 1/2 baths, formal living room and dining room, 3-car garage, kitchen has island, granite counter tops, master has huge walk-in closet, family room with built-ins and fireplace, second floor bonus room 25 x 15, second floor master 22 x 13, covered rear porch, floored attic, sprinkler system, corner lot of just over half an acre.   Price for this majestic home - $774,900.

Larry Smith is loaded for bear in Wyndcroft.  He has four homes ready for your inspection.  For openers you will want to see 9207 Duncanshire Court.  It has a first floor master, open island kitchen with pantry and granite counter tops overlooking the the family room.  it has 3 side brick, 5 bedrooms and 4 1/2 baths, large second floor bonus room, screened porch, first floor laundry, media room, sprinkler system, four car garage space and 4182 square feet priced at $749,900.  And, oh yes, there are the “other features too numerous to mention.” His second home is at 9105 Aspenshire Court.  This 2 story home is of brick and fibre cement construction.  It has 4 bedrooms and 5 full bathrooms.  The master is on the main floor.  It features his and hers walk-in closets.  There is a formal living room and dining room, a kitchen with island that overlooks the hearth room.  The family room is 18 x 16 and the second floor bonus room is 20 x 14.  There is a two story foyer, 3 car garage, screened porch, 10′ first floor ceiling and 9′ second floor ceilings.  It is situated on a lot of over one-half acre and is priced at $759,900.  Did I leave out lot of things?  OF COURSE!  Larry’s third home is at 9212 Duncanshire Court.  This is a two story traditional that has an open plan and is 3 sides brick.  It has a two car garage, two story family room, granite counter tops, large first floor master (21 x 16) with trey ceiling and fireplace plus a vaulted master bath, 5 bedrooms, 4 1/2 baths, first floor guest room, living room, dining room, a 25 x 12 screened porch and a half acre + that comes in at $799,900.  Last but not least is his home at 9202 Duncanshire Court.  This transitional home is 4248 square feet and is a shake, stone and fibre cement exterior combinaton.  There are 5 bedrooms and 4 full bathrooms.  The is a dramatic first floor master, 22 x 12 screened porch with skylights, living room, dining room, a bonus room of 22 x 17, 3 car side load garage, 21 x 21 family room with fireplace, attic with permanent stairs, sprinkler system.  Heck - I am tired of typing.  This home is priced at $829,900.  Do yourself a favor and visit these homes.  If they are in your price range you will find the quality excellent and the location great. 

John Fish (919) 696-3474   Email: Marvmax@mindspring.com   Website: www.JohnFish.com

Triangle, North Carolina.  Average Pay For Full Professors At Duke And UNC Ranks High Nationally.  There is no doubt about it: top dollar draws the top talent in any field or business you care to name.  Academia is no different.  Top professorial pay is important to universities for their ability to draw top talent, to business and industry for the products and quality of students they produce, to the cities and immediate areas they serve for the business and quality of people they attract and, in many cases, the business they produce and businesses they draw to their respective states.

The average pay for full professors at Triangle universities during 2007 was: Duke - $152,600, University of North Carolina - $138,500, North Carolina State University - $110,800, North Carolina Central University - $99,300 and Meredith - $72,500.  Since 2000 these figures represent a 34.3 percent increase at Duke, a 37.3 percent increase an UNC, and a 21.1 percent increase at NCSU.  UNC now ranks third in the nation, for public schools, for average full professor pay behind the University of Maryland at Baltimore and the New Jersey Institute of Technology. 

It is a tough job to try and remain competitive with the top private schools such as Harvard and Stanford.  Harvard’s average was $184,400 and Stanford’s was $173,700.  While a number of private universities may pay more than the Triangle universities, the cost of living in North Carolina is enough less than the cost of living in California and in East coast communities to make the overall pay at Triangle universities about equal to them.

John Fish (919) 696-3474   Email: Marvmax@mindspring.com   Website: www.JohnFish.com 

Durham, North Carolina.  Components For General Purpose Lighting Expand Cree Sales.  Cree is the LED lighting company that I have talked about several times.  While earnings declined they had a substantial increase in sales of components used for general purpose lighting.  While the production of light-emitting diodes reamins an important part of their business the ability to produce products that save energy is becoming more and more important to the company and certainly more important to the end users.  LEDs are more expensive than fluorescent and incandescent lights but prices are coming down as their markets widen and the technology improves.

Cary, North Carolina - SIEMENS BUYS MACGREGOR PARK BUILDING.   The 30,000 Square Foot Building Brings $4.1 Million.  The building, at 211 Gregson Drive, is part of Siemens plan to add 300 jobs in the area during the next five years.  Siemens is a German electronics company.  Their medical solutions unit makes patient-monitoring systems and medical gear.  That unit is where the job growth will occur.

John Fish (919) 696-3474   Email: Marvmax@mindspring.com   Website:  www.JohnFish.com

Triangle, North Carolina.  March Sales Of Existing Homes Down 28 Percent Vs. 2007.  Wake, Durham, Johnston and Orange county sales totaled 1,875 homes.  That’s the ninth month of declining sales is a row.  Unfortunately, future sales indicators are not very promising either.  Pending sales for March were down 27 percent.  Unsold home inventory, swollen by foreclosures, increased 24.4 percent to 14,492.  That number is equal to a nine month supply.  Wake building permits slid to 510 for the month.  That’s a high dive of 47 percent.  Showings were down 15 percent.  Furthermore, 42 percent of owners dropped prices on their listings.  Last year that figure was 32 percent.

On the plus side the average Triangle home sale price squeezed out a 0.6 percent increase to $235,175.  Not too surprisingly spec inventory, despite lending problems and everything else, was up almot 12 percent year to year.  Why?  National builders have been cutting back on starts for quite some time but local custom builders have existing loans to repay as well as paying for lots that have contracted for.  They know the gamble but they each hope their homes will be the ones that sell.  Average spec home prices are a far cry from the average sale price of Triangle homes.  The average spec home price in March was $608,822 in Orange county, $434,810 in Wake County, $289,091 in Durham county and $249,213 in Johnston county.  Homes selling for under $300,000, in particular, are still enjoying strong demand.  During several prior blogs I have discussed home staging and the wisdom of seller’s doing it.  Those who are doing a good job of it are reaping the rewards of better sales prices and faster sales.  So, those of your trying to save money by just “straightening up” take notice.  In this market that is penny wise and pound foolish thinking.

John Fish (919) 696-3474   Email: Marvmax@mindspring.com   Website: www.JohnFish.com