Andrew Moriarty, Principal, Carolinas, Bohler
In an interview with Invest:, Andrew Moriarty, principal at Bohler, discussed the company’s steady growth in Charlotte, its strategic presence in the Carolinas, current real estate trends, leveraging technology, and navigating regulatory challenges in housing development.
What have been the key milestones for Bohler in the Charlotte region over the past 12 to 18 months?
We’ve seen steady growth in the marketplace, though it’s been more of a leveling off overall. Our projects have become more diversified, and we’ve put a good team in place. The past year has been relatively stable for us in Charlotte, with more diversity in the types of work we’re doing.
How would you describe Bohler’s presence and impact in the surrounding regions of North and South Carolina?
We have two offices, one in Raleigh and one in Charlotte, which serve the entire North and South Carolina region. We travel throughout the region to perform survey work and serve a variety of sectors, including commercial properties, manufacturing, and pharma. We work with a broad cross-section of clients across this footprint and can effectively cover the whole Carolinas region from our offices.
What are some of the trends in land development and real estate in the region, and how are you adapting to these trends?
Over the last couple of years, we’ve seen high costs across the board — land, construction, interest rates, and capital. Our focus has been on helping clients identify risks early in their projects. Suppose there’s going to be an extensive permitting time frame or extraordinary construction costs that might make a deal tough to pencil out. In that case, we aim to bring these issues to our clients’ attention immediately. This allows them to decide whether to proceed or drop the project sooner.
We work closely with our clients, often spending more money upfront to thoroughly investigate sites so they fully understand the risks involved. The market is challenging; high-cost urban projects, like those involving structured parking, are not moving forward as much. However, garden-style apartments in the outskirts of municipalities, where costs are lower, are still feasible. It really depends on the market sector and project type. Our goal is to help clients understand how costs impact their projects and identify any risks early on.
What are some of the opportunities you see in the market?
We’ve seen significant growth in single-tenant retail projects, such as car washes, fast food restaurants, convenience stores, gas stations, and oil change services — essentially anything automotive-based. These projects are continuing, and the pace of growth has even increased in these industries because there’s a strong business purpose for these properties. If there’s a solid business case for the operation, with the real estate aspect being secondary, these projects tend to work well. For instance, small-site retail projects like Chick-fil-A and McDonald’s are moving forward rapidly. Additionally, there’s some growth in grocery retail and larger retail stores, which hadn’t been building new stores for several years. Although the numbers aren’t huge, it’s encouraging to see these sectors getting back to building again. However, retailers must understand and manage the high costs of construction.
How are you leveraging technology in your operations?
We’re always exploring available tools and technologies. We utilize mapping tools and GIS extensively, and we use drone technology for topography and 3D scanners for our surveying operations. While these solutions aren’t always applicable, they often make sense and enhance our efficiency. Recently, we hired a chief technology officer to help us stay on the cutting edge of technology, ensuring we can provide more accurate and timely information to our clients. This continues to be a key focus for us.
What are the major challenges and strategies for housing development around Charlotte?
Water and sewer availability is a major issue, often addressed slowly by jurisdictions, especially around the perimeter of Charlotte. Housing is another significant challenge, as it’s tough to make residential deals work financially despite the high demand. The more affordable locations will likely see more development as downtown urban core areas become too expensive. We also see growth in the single-family residential market, but home builders won’t see the same pricing growth as in the past. Efficiency, selective use of materials, and strategic location choices are crucial. Working with jurisdictions on infrastructure improvements also plays a key role in development costs.
How do you foresee the real estate landscape evolving in the Southeast, and what role do you envision Bohler playing in this future?
The Southeast will continue to be a strong and attractive market for relocations domestically and internationally. It’s a favorable, pro-business environment, despite some challenging jurisdictions. We plan to focus our growth in this region to serve this market effectively.
What advice would you give to business leaders looking to navigate economic challenges and capitalize on growth opportunities in the real estate sector?
Be very particular about site selection and get as informed as possible about the property early on. Hire a good team of consultants and professionals to guide you through the process. Meet with jurisdictions upfront to understand property risks, including soil, environmental, zoning, and permitting issues. Understand the costs involved as soon as possible. Patience is key, especially with the complexities of land ownership and market conditions. Developers should work with sophisticated landowners who understand the market better, as there are fewer developers closing deals now.
