4th Quarter 2017 Hotline
by Joe A. Hollingsworth, Jr.
By now, you have read it over 50 times. You have heard it on TV over 30 times. Sometimes it just seems to be relentless…that the media has to drive home the point that we are in an economic cycle that should have already matured or is approaching the downturn. Economists, who try to do forecasting based on the past (which is like driving a car looking in the rear view mirror), cannot get it right. When they say they estimate something, it is more of a guesstimate. In fact, my weatherman does a much better job of being accurate. It’s obvious that the stock market doesn’t agree with the economists.
I, for one, am strongly convinced that at no point in time (that I can recall) in America’s economic history that: 1) The onshoring of jobs/business has become so massive; 2) The discussion of protective tariffs are realigning America’s national corporations to relook at investing in the United States instead of overseas; 3) Regulation after regulation in literally every department of the federal government is being lifted or revised. In fact, a recent statistic quoted in the Wall Street Journal said over 610 regulations have been substantially altered as of June 30th year-to-date; 4) Capital is fleeing from the potential controls of China; 5) Low inflation is justifying (to some extent) lower than normal interest rates; 6) Over 40 million people are receiving federal assistance in which a portion of those could be active participants in the workforce if the entitlements were lowered or drug tests were implemented; 7) The controls of federal government are more in conservative hands (not saying that they are good at it yet); and, 8) There is pent up demand that has built up over the previous 8 years. In fact, the list goes on and on.
I maintain that the next 12 years (whether Trump is re-elected or not) will be the “best 12 years of our economic lives”. Small business ownership and individual initiative can lift this country again easily, unleashing the ingenuity behind individuals and their thirst for personal success. Although, this is not limitless; it can certainly carry us for a decade.
As it pertains to industrial real estate, I believe that there is no better time to build; because, scarcity has taken hold of the market, driving rental prices up. Older space has taken a “grand ride”, also. Many might say, “Why not just buy existing space?” However, as we have experienced in the market, existing net leased properties are greatly overpriced. And, while I certainly don’t want to throw rocks at that business model, to have new highly-flexible space with life spans of 40 to 45 years is now beginning to command premiums. The real question is whether developers can force the market to longer term leases with firm escalators to justify new builds; we say yes!
As far as our company’s direction, we are buckled up, strapped in, and ready to experience what will be “the greatest ride of our economic lives”.
Groundbreaking for Phase III of the SouthPoint Business Park held in Mocksville, NC.
Mocksville, NC (September 18, 2017)Local and state officials and members of the business community gathered to celebrate Phase III of the SouthPoint Industrial Park in Mocksville as well as the longtime partnership between Davie County and the Hollingsworth Companies which has provided the community with hundreds of jobs and millions of dollars in investments.
The Hollingsworth Companies broke ground today on construction of a 108,960 square foot spec building and three pre-graded building pads in the industrial park on US Hwy 601. This combined 641,000 square feet of additional industrial space has the potential of providing hundreds of additional jobs over the next five years.
“I would like to thank the community for being willing to invest time, effort, and money into being a true partner in making this park successful and I want to thank the entire county for their willingness to help us develop their area. It is my belief that the next 12 years will be the best economic period of our lives,” Hollingsworth said.
“We are coming out of the “Perfect Storm” that had formed against industrial development in the last 10 years. Over-regulation in banking, building codes, and environmental regulations had a virtual stranglehold on industrial developers.”
Representative Julia Howard, North Carolina House of Representatives, thanked Joe Hollingsworth for having the vision it took to come to Davie County. “Here we are, a rural community with a tract of land, but you had a vision of what that could become...We are very grateful that you believed in us and took that step to partner with us. We are approaching the 20-year mark, and I hope that as we reach the 40-year mark another group of people will be sitting under another tent celebrating another expansion.” she added.
Terry Bralley, President of Davie County Economic Development, is equally thankful for the relationship. “The partnership we have with the Hollingsworth Companies has allowed Davie County to leverage private money rather than risking the public’s money. We’ve been able to focus on what we do best -- water, sewer, roads, and infrastructure.”
He went on to say that “Economic development really is a team sport, it takes each and every one of us working together to make these kinds of projects happen. Our representatives in Raleigh along with the elected officials from across Davie County have learned how to coordinate efforts to get things done quickly and efficiently.”
‘It is a very competitive world we live in today,” Bralley added. “What really makes the difference is figuring out the opportunities that are out there and what it will take to make things happen. This community, time and time again, has led by example in terms of finding ways to get rid of impediments to growth.”
“We have been very successful in attracting industry and investment into this area to the point that today there are no existing buildings left in inventory and we have an unemployment rate that is one of the lowest in the state at about 3.5%. We can’t stop there. We have to look to the future. We all know that industry is looking for existing buildings because they want to be able to move in within 90 days.”
Christopher Chung, EDPNC CEO, said, “It’s always exciting to see communities take a proactive approach in adding more “product” in their market, and it’s what often differentiates the most successful local economic development efforts.”
“Davie County is fortunate to have great partner like Joe Hollingsworth and the Hollingsworth Companies... Best of luck as you all begin focusing on the really fun part: finding tenants for those buildings!”
About The Hollingsworth CompaniesThe Hollingsworth Companies are the largest non-urban Industrial Real Estate developer and construction firm in the southeastern United States with 125 tenants, eighteen million square feet of industrial space, spread over 15 states. The Hollingsworth Companies has facilities located in Alabama, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia. For more information about The Hollingsworth Companies, contact, Tom Mann, Senior Vice President of Industrial Real Estate, at 865.457.3701, firstname.lastname@example.org