2 min read April 2023 — Cristy Nine, corporate managing director of Savills, sat for an interview with Invest: and shared her insights on the huge flight to quality as employees seek greater amenities, how Charlotte’s Pearl Innovation district is going to diversify the region’s offerings and why Charlotte is a great place for the real estate industry.
What have been some of the key highlights for the company over the last year?
Revenue in 2022 was slightly ahead of our expectations despite continued economic challenges. More importantly, perhaps, our performance was substantially ahead of the 2019 ‘pre-COVID’ comparative period. As a company, we continued to grow our footprint nationally and internationally. We selectively opened new offices and recruited professionals and teams that strengthen our existing services and bring new offerings to our platform.
What sets you apart from other commercial real estate firms in the Charlotte Market?
As a firm that focuses on tenant representation, we spend our energy on being the best that we can be in that particular area instead of trying to be a one-size-fits-all organization. By having this laser focus, we have been able to provide customer service in a highly approachable manner with a very high touch. What this translates to is that whether we are executing small projects or something sophisticated across a portfolio, our clients can count on consistent, best-in-class results.
How are you as a firm helping your clients navigate the current economic crisis?
We have always called ourselves real estate advisors rather than real estate brokers, and the current economic headwinds have amplified the advisory and consultancy side of our business. For example, for some companies cost is not as big of a factor to them as the utilization of their space is, so we are helping the decision makers make valid decisions by looking at some different metrics that may not have been the focus in the past. Meanwhile, there are others whom we are essentially assisting in writing a new HR manual as employers rethink their workplace strategies and in-office policies.
What key trends are you seeing emerge as a result of these hybrid and remote environments?
There is a huge flight to quality and a shift toward creating more of a home environment rather than just having a sterile office space where employees have a workstation, computer, and stapler. Occupiers, who can, are seeking out higher quality space and amenities to earn back their worker’s commutes. Creating a ‘commute-worthy’ office is requiring employers to invest in high-quality environments that offer employees a more compelling alternative to the home office. Building owners are having to go above and beyond simply providing a shared conference room or a fitness center in a forgotten corner of a building. In some instances, landlords are getting creative and transforming entire floors into an amenity floor where people can gather. They are offering free coffee, Zoom rooms, podcast rooms, golf simulators and technologically advanced conference rooms at a level never seen before
What areas within Charlotte would you say are experiencing the most growth?
I would say that one area that may not be on everyone’s radar is what Atrium is doing in the Pearl Innovation District because it is different from our typical mixed-use development in Charlotte. The very fact that we are now going to have this whole new research district and a four-year medical school is amazing. Charlotte is the biggest city in the nation without a four-year medical school. The development is going to create an ecosystem grounded in research and academics while also encompassing retail, apartments, a hotel and open community spaces. It is a major public-private partnership with almost $1.5 billion in private money, which is above and beyond what the city and county are contributing. This is one of the most dynamic things that’s happening in Charlotte, the shovels are in the ground and it’s happening. It took a long time to assemble the land and to get everybody holding hands together as it does with any complicated project, and it will further diversify and strengthen the economy of Charlotte.
What characteristics of Charlotte as a region make it a great place for real estate?
We are pro-business and we try to have a lot of transparency. Understandably, we have challenges such as infrastructure, mobility and transportation, but we are trying to work toward solving them and are not afraid to raise our hand and say, “We have challenges. Let’s pull together and try to solve them.” Companies that are coming in to look at putting a foothold down in Charlotte are pleasantly surprised by the affordability, especially if they are coming from any of the Gateway markets because you can get so much more here for less. It is not just the physical real estate, it trickles down into the taxes and the way that we are set up for business here.
What do you see as a future of commercial real estate in Charlotte and what are some current opportunities to be leveraged?
The real estate market is experiencing turbulence and the volatility is keeping some occupiers and investors sidelined, though progressive improvement is expected for the second half of the year and things will hopefully plateau. A stabilization of interest rates and inflation that is in check, will allow us to be able to form decisions based on fundamentals. The outlook is uncertain and we all wish we had a crystal ball. That said, Charlotte is a growth market where people want to live and those that are willing to take a long-term view will be rewarded.
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