Greg Pieratt, President, Lee & Associates Charlotte

In an interview with Invest:, Greg Pieratt, president of Lee & Associates Charlotte, shared that Charlotte’s welcoming market and economic diversification offer abundant opportunities, how the broker-owned model enhances the client experience by fostering an entrepreneurial spirit, and why community involvement is crucial to them. 

Could you share with us some of the key milestones and achievements for Lee & Associates since opening its Charlotte office?

Since our official launch in March, we have been ahead of our goals. Initially, we had a few simple milestones. We were looking at it as we were starting from scratch in building the Charlotte office and did not have any producing brokers as is usually the case in a Lee & Associates expansion. One of our key objectives was to have six to eight brokers on board by the end of the year. We reached that milestone in just six weeks and now have 13 brokers on board. Securing an incredible team of brokers and staff so quickly has been a significant achievement, and I am genuinely surprised by how well it went.

We also aimed to secure permanent office space by the end of the year, and we managed to do that by June 1 in the vibrant area of Montford. Another goal was to have a full-time in-house staff for marketing and administration by the end of the year, which we accomplished by May. We are proud to be ahead of schedule in many areas.

Initially, we launched as a satellite of the Lee & Associates Raleigh-Durham office, which provided us with an excellent support system. The goal was to become a fully self-sustaining and independently operating office within 18 months. However, we received approval to become an independent office in the first week of June, putting us well ahead of schedule in terms of growing the Lee brand in Charlotte.

What are some of the unique opportunities you have identified in the Charlotte market since launching?

When building a business, particularly in brokerage, recruitment plays a significant role because that is where the revenue production originates. I found that Charlotte’s market is uniquely welcoming, more so than many other stabilized markets. As a result, we have had a lot of success in getting brokers to meet and listen to what Lee has to offer. Additionally, our broker-owned model differentiates us from all of our competitors. All of these factors have resulted in strong recruiting success. The continued growth here means that there is ample opportunity for everyone. People are naturally curious about new players in town, and Lee & Associates has become that shiny new object.

Another unique opportunity I’ve been pleasantly surprised by is the industry diversity in Charlotte. Over the last one to two decades, the market has evolved significantly beyond its banking roots. Today, Charlotte is home to a deep roster of Fortune 500’s spanning a variety of industries including logistics, manufacturing, tech, clean energy, entertainment, and capital markets. The local government’s aligned economic development goals have created fertile ground for businesses, making the Carolinas an exciting market with diverse opportunities.

Finally, the net positive migration to North Carolina from other states and regions continues to drive growth and progress in so many industry sectors.

What are some of the challenges, especially given the current economic landscape, and how are you planning to navigate them?

In the real estate world, we are not immune to broader economic challenges. Factors such as interest rates and the upcoming presidential election are topics of constant discussion. The impact of rising interest rates, in particular, has been an ongoing narrative over the past couple of years, creating significant headwinds, especially in the investment sector.

While there remains significant pent-up capital ready to be deployed across various asset classes, there is an ongoing struggle to bridge buyer and seller expectations. Much of this tension is directly linked to the current interest rate environment, leading to a slowdown in certain sectors including multifamily and office.

The macroeconomic landscape is presenting the biggest headwinds in the Carolinas. However, I believe that once these headwinds start to shift, the fundamentals of this market are strong enough to drive significant growth. Coming from California, where I am originally from, I see a stark contrast in the challenges faced by the commercial real estate industry. California has its own set of policy and economic issues prompting people and businesses to move to more business-friendly environments like the Carolinas.

While the political landscape always plays a role, North and South Carolina have managed to maintain a business-friendly climate, mitigating some of the challenges seen in other parts of the country. Overall, our strategy is to stay adaptable and continue focusing on the fundamentals that make this market strong.

What are some notable trends that you are seeing in the Charlotte metro area’s commercial real estate market?

Trends in general are positive. I think migration is probably the biggest theme currently driving growth in Charlotte. With over 100 people per day arriving in the Charlotte region, this impacts all sectors, including manufacturing, with increased labor demand, and distribution, where ports and corridors are vibrant and busy. The migration to the Carolinas is a significant driver in market trends and patterns.

The net positive migration to the Charlotte metro region creates growth patterns and across all industry sectors. As it relates to commercial real estate, migration is driving housing, retail development, and even helping prop up office space, which is a tough market sector nationwide. Charlotte’s office market is holding on, in large part, because people and businesses continue to move here. For example, we are about four basis points better on the vacancy rate than the national average. This is largely because of business absorption driven by migration. Another key storyline is the impact of interest rates, which is something we must keep an eye on.

From your perspective, how does the broker-owned model enhance the client experience and business outcomes?

The Lee & Associates broker-owned model is not only built to enhance the client experience, increase efficiency, and meet the demands of expected outcomes, but it is built to outperform. In our broker-owned model, the client is the singular focus of our business efforts.  Our resources can be trained on, adapted for executing on behalf of the client and meeting their goals. As a broker-owned, privately held company we do not have the burden of outside shareholders concerned about our service platform, its cost, the acquisition and implementation of resources, and the challenging cyclical nature of reporting profits on a quarterly basis like our publicly traded competitors.  Our broker-owners understand the need to compete, win, and perform in our vital role as advisors.  We are interested in building long-term, mutually beneficial relationships that connect our professionals directly with their clients. 

Our model, while having robust services throughout our international platform, also gives the ability to our individual offices to create bespoke experiences for our clients that are not only relevant in local markets with specificity to local market conditions, but allow for the acquisition and utilization of local resources as well as collaboration within our international network.

I will also add that is a broker-owned company. We are able to eliminate red tape and bureaucracy because of the singular nature of our client focus. We understand that our clients are not interested in the long line of approvals required in the global occupier firm’s ecosystem.  Rather, they expect responsiveness, timeliness, and the resources to continue to make excellent data-driven decisions from their Lee & Associates team. All of these reasons above are why Lee & Associates exists. This is why we have been successful for 45 years, and why the future is so bright for our clients and our professionals. 

What differentiates you from other firms in the area?

Charlotte is a mature market home to all the largest brokerage firms. We are also home to a deep bench of regional and local firms Lee is unique because we have a national brand and reach, but we operate like a local company. The broker-owned model is special because every broker’s goal is to become a partner and have true ownership in their local office, vested in their long-term growth and progress.

Our secret sauce is that all the profits stay local. At the end of each year, profits are distributed back to the partners in the office. No corporate entity is taking a cut. This model provides real opportunities, especially for young brokers, who could potentially become partners before they turn 30. The entrepreneurial spirit at Lee aligns perfectly with the brokerage industry in a diverse and rapidly growing market like Charlotte.

What are your top priorities and goals for Lee in the Charlotte market over the next couple of years?

Lee is a full-service commercial real estate firm, and our goal is to continue recruiting quality, entrepreneurial brokers across different asset classes. Currently, we have strong industrial and multifamily groups, but we recognize opportunities in other sectors, such as office, retail, investment sales, medical office, capital markets, and land sales for investment and development.

We also look to continue building our community engagement. Charlotte is a wonderful community, and it is important for us to participate actively in industry-related organizations as well as charitable organizations. We had our first charitable outing in August at a local food bank and look forward to consistent giving. We are incredibly proud of the rapid growth of great people. As Hugh McCall recently stated in the Charlotte Ledger, “Aim high and work hard”. We intend to do exactly that securing the Lee & Associates legacy in the Queen City.