TD Bank’s Hugh Allen Names Hot Southeast Zip Codes
- Jan 03, 2018
The U.S. economy is poised to continue growing in 2018, according to the latest edition of “The Briefing” from Transwestern. In 2017, unemployment dropped, job growth was strong and the real estate industry performed well despite difficulties caused by natural disasters and uncertainties brought by debates over tax changes. The Southeast is one of the most prominent regions where growth and development have been particularly robust.
But what lies ahead for metros in this region? Bringing more than 20 years of commercial real estate experience, TD Bank Regional Director of CRE Hugh Allen offers Commercial Property Executive his insights on the cities that are likely to attract most investors next year.
Which were the most popular zip codes for CRE growth in 2017? In which metro areas is 2018 poised to exceed 2017 in terms of growth and expansion?
Hugh Allen: The Southeast and Southwest regions of the U.S. experienced particularly strong population and job growth this year, so we anticipate that these markets will see, a steady, potential increase in CRE deal volume throughout 2018. In the Southeast particularly, the following cities are poised for growth and expansion in 2018: Charlotte, N.C., Raleigh-Durham, N.C., Charleston, S.C., and Atlanta.
What drives growth in those areas?
Allen: Many companies, like Boeing, MET Life, State Farm, Sealed Air and Mercedes Benz have relocated to Southeast cities. This migration has led to ample job opportunities. Given the favorable business climate and continued population growth, we should see more lending activity. We may see even more corporate relocations to the region in the coming year. Many have their eyes on Amazon and other major e-commerce players.
Is the 2018 outlook pointing towards continued growth? Or are there any signs of a new bubble?
Allen: We anticipate continued growth throughout 2018 in the Southeast. We anticipate more focus on affordable housing options.
Millennials continue to seek amenity-based housing that’s within close proximity to stores, transportation and restaurants. As this trend continues among Millennials, it creates an opportunity for developers. Consumer-buying behaviors also have significant influence on retail and industrial properties. The need for immediacy and convenience is driving demand for additional distribution centers across the country. A majority of retailers and e-commerce sites are adapting to these shifting demands.
Image courtesy of TD Bank