Johno Harris, Senior Executive Vice President, Lincoln Property Company

In an interview with Invest:, Johno Harris, senior executive vice president of commercial real estate firm Lincoln Property Company, shared insights into the company’s strategic transition, evolving market approach, and the critical role of technology and regional expertise in driving Lincoln’s success across the Carolinas.

What have been the key milestones for the company in the Carolinas, as it transitions from Lincoln Harris to Lincoln?

The main question here is really about why, how, and what we’re doing. We went through succession planning for both the Harris and Lincoln sides of the company and brought in Stone Point over 18 months ago. This wasn’t only about succession planning but also about fundamentally reshaping how we operate moving forward. By transitioning, we’ve been able to break down silos, putting the best teams together across the country — whether for specific asset classes, deal types, or any other objectives. It’s also opened up new opportunities for people to step into larger roles, fostering internal growth, which is essential for a people-centric business like ours.

Over the past year, despite a challenging market with tightening credit and capital markets, we’ve used this time to restructure ourselves for the future. We’re preparing to be at the forefront when the market does turn around, ready to seize opportunities across asset classes and deal types, including distressed assets. This entire process has been about positioning the right people in the right roles to work efficiently and drive Lincoln forward.

How has the market evolved over the past year?

The “flight to quality” is happening not only here in Charlotte or Raleigh but across the country, coast to coast. Companies want office spaces that support their core business, and many are willing to invest in environments that meet their needs, especially as they adapt post-COVID. It’s all about providing a workspace that helps retain and empower their workforce, with the amenities and flexibility that today’s employees expect.

How does Lincoln’s platform strategy set it apart in today’s competitive market?

I think Lincoln’s strength really lies in having boots on the ground. We’re present in 35 markets across the United States and Europe, and we know these areas better than anyone. Our team of real estate experts spans every function — property management, development, investments — and every asset class, from industrial to multifamily, mixed-use to data centers. This comprehensive, 360-degree approach to real estate is a key differentiator for us.

Another element that sets us apart is our ability to bring together the best people across the country for each project, asset class or deal type. We share insights and expertise, which enables us to deliver a level of service that’s distinct. We’re not just servicing or managing assets; we’re building and investing in them too. We always say we put our money where our mouth is, and that’s a rare commitment among our competitors. Many may offer similar services, but few actually invest alongside their clients. That’s a defining part of the Lincoln platform, and we intend to keep doing it.

How has your approach to delivering services evolved over the past year, as client expectations have shifted in response to economic volatility?

It’s interesting; everyone talks about interest rates, rate cuts, and their impact on the market. But there’s no single solution or silver bullet for the current economic landscape. Stepping back, we’re actually in a fairly strong economy overall, with moderate growth. But if we narrow it down to the real estate sector, things are more complex, especially with the commercial mortgage market sitting at around $4.7 trillion, with $2 trillion of that set to roll over in the next three years.

Over the last 12-18 months, there’s been a sort of pause in financing, where banks are delaying actions on existing debt and are hesitant to originate new debt. This has created a “basis game” around asset values, where the question is no longer just about cutting rates but about finding sustainable valuations. In recent months, we’ve started to see more distressed transactions, especially in assets where financing structures are no longer viable. Multifamily properties, for example, may have good fundamentals but were purchased at very low cap rates that don’t align with today’s higher mortgage costs. Similarly, office assets, particularly those with value-add business plans, are often structurally misaligned with current market realities. Lincoln has a history of thriving in challenging markets. Coming out of the Global Financial Crisis, we were well-prepared and made significant gains because we were positioned to act. Today, we’re in a similar situation, with a strong balance sheet and experienced partners. We’re ready to step into distressed assets and capitalize on opportunities as the market clears out.

How does Lincoln’s platform influence asset decisions?

It allows us to take a holistic view when deciding what’s best for each asset, whether we’re buying or developing. For example, we’re exploring all-electric buildings in Raleigh, which is a trend we’re also seeing on the West Coast and in Boston’s life sciences sector. This level of analysis was less common in the past, but now, with the support of our platform, we can present clear data and proposals to our investment partners on why these decisions make sense. Another innovation we pioneered was implementing pure dispatch elevators in a building in Uptown Charlotte, designed to improve evacuation efficiency post-9/11. This type of advancement reduces the space required for staircases, which ultimately creates a more efficient and cost-effective layout for tenants.

After the global financial crisis, we saw a major shift in institutional investment in the Carolinas. Large firms like Blackstone, KKR and Goldman Sachs have entered the market, recognizing the region’s strong demographics and value. Institutional investors now see they can acquire assets here in Charlotte with the same or better credit quality as in major markets like New York or L.A. — but at a better price and yield. The Carolinas have become a prime destination for institutional capital, which supports Lincoln’s growth and market positioning.

What is Lincoln’s outlook for the Carolinas market, and what are your top priorities for growth in the coming years?

Lincoln’s platform enables us to explore areas of the real estate market we might not have pursued in the past. A key example is our focus on data centers. Historically, we’ve owned and managed data centers, but now we’re leveraging Lincoln’s broader data center platform to dive deeper. Consider this: about 60-70% of the world’s data centers are in Northern Virginia, which is now running low on power. Data centers require both power and fiber, and Charlotte is uniquely positioned for both, sitting at the crossroads of major west-east and north-south fiber routes. This infrastructure, along with the presence of tech giants like Amazon and Google, makes Charlotte an ideal location for large-scale data centers.

Additionally, because of our platform, we’re also well-positioned to capitalize on distressed assets. Our relationships with capital partners like Goldman Sachs, which actually began from a distressed deal, allow us to actively pursue these opportunities, both here in the Carolinas and nationwide. I expect that in 2025, while you might see us doing traditional projects in places like Uptown Charlotte or Raleigh, you’ll also see us expanding into areas and deal types that might surprise people.