Carolinas’ Contract Activity Declines Again in June

Compared to the same period of a year ago, the value of new contracts signed in June for future construction fell by 29% overall in North Carolina and by 8% in South Carolina, according to the latest information from McGraw-Hill Construction, publisher of Southeast Construction.

In North Carolina, June starts totaled $1.6 billion, down from last June’s $2.25 billion. The residential sector fell 46% to total about $775.2 million. Nonbuilding starts fell, too, finishing the month at $190.5 million, or 48% behind last June. Nonresidential contracts improved markedly over last year, however, jumping 42% to tally $641.9 million.

For the year-to-date, North Carolina is 20% behind last year’s pace. The residential sector is 35% behind last year, and totals roughly $5.4 billion in new starts so far. The nonresidential market is 16% behind the ’07 pace, with about $3.3 billion in new starts. The nonbuilding sector’s $2.3 billion total to date is about 51% ahead of last year’s pace.

In South Carolina, June contracts fell by 8% overall, compared to the same period of a year ago, for a $911 million total. That compares to last June’s total of $991.6 million.

For the second month in a row, the nonresidential sector improved markedly, increasing by 77% over the previous June for a $355 million total. Residential fell by 32%, however, for a $452.7 million total. The value of nonbuilding starts declined by 16% for a total of $103.4 million.

For the year-to-date, the value of new starts in South Carolina is 21% lower than ‘07’s pace. Residential is 24% below last year, and totals roughly $2.9 billion. Nonresidential is 6% off the pace of a year ago, with a $1.4 billion tally so far. The nonbuilding segment, which includes streets and highways, bridges and other infrastructure, is 33% behind last year’s pace and totals $488.5 million.

Charlotte, N.C.-based real estate development firm Crosland, recently announced plans for projects in Bluffton, S.C., and Charlotte, N.C.

For the Bluffton-area project, Crosland is working with Reed Development, a developer specializing in the Lowcountry of South Carolina, on plans for Buckwalter Commons, a 57-acre, multi-use project near Hilton Head Island.

A 53,543-sq-ft Harris Teeter grocery store will be the anchor tenant for the 135,000-sq-ft first phase retail component. Construction is scheduled to begin in 2009, with the grocery opening in early 2011. The second phase will include offices and medical/service facilities.

Buckwalter Commons will feature sustainable development practices, such as the design of the project’s bio-retention areas and pervious pavements.

In Charlotte, Crosland is working with a joint venture of Eastern Federal Corp. to develop Tranquil Court on Selwyn. The developer broke ground on the project in June.

Tranquil Court on Selwyn is the four-story residential component of a $42 million mixed-use development. The project will feature 109 residences, including studios, and one- and two-bedroom units ranging from 562 to 1,419 sq. ft.

The commercial component, totaling roughly 63,000 sq ft and consisting of a five-story building adjacent to the residences, will include class-A office space and pedestrian-level retail.

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