The Bad News Report

[rancenc]

Not enough pantyhose being sold!!!!

https://businessnc.com/lumberton-pantyhose-maker-blames-126-job-losses-on-fashion-changes/

Edited October 2, 2023 by rancenc

[rancenc]

Local job losses!!

https://www.porkbusiness.com/news/industry/smithfield-foods-close-pork-plant-charlotte-nc#:~:text=Smithfield Foods announced it will,and better utilize existing capacity

[rancenc]

Another set of job loss announcement for the region.

https://businessnc.com/gilden-is-closing-one-of-two-salisbury-plants-laying-off-258/

https://businessnc.com/coats-american-laying-off-51-at-kings-mountain-facility/

Edited October 12, 2023 by rancenc

[15895]

3Q Airline results out. 
 

AA had a net loss of $545 Million (Record high revenue. Excluding net special items, AA would’ve had a $263 Million net profit. A big hit to profit was $983 Million in connection with their new pilot labor contract).

United Net Income: $1.1 Billion

Delta net income: $1.11 Billion

Not sure if push ever came to shove Charlotte would get any cuts but not sure who would. Chicago? That’d be a boon to United. JFK? Great for Delta & JetBlue. CLT, DFW, DCA seem super insulated & safe, Philly & MIA seem pretty safe too. 
 

https://onemileatatime.com/news/american-airlines-reports-loss/

Edited October 22, 2023 by AirNostrumMAD

[kermit]

The state (and our federal reps) has dropped the ball once again, the Whitehouse announced the 31 new tech hubs that will receive fundings from the CHIPS act. NC did not make the list. [its still pretty early in the morning, did I miss it in the list?]

https://www.whitehouse.gov/briefing-room/statements-releases/2023/10/23/fact-sheet-biden-harris-administration-announces-31-regional-tech-hubs-to-spur-american-innovation-strengthen-manufacturing-and-create-good-paying-jobs-in-every-region-of-the-country/

Edited October 23, 2023 by kermit

[CLT2014]

12 hours ago, AirNostrumMAD said:

3Q Airline results out. 
 

AA had a net loss of $545 Million (Record high revenue. Excluding net special items, AA would’ve had a $263 Million net profit. A big hit to profit was $983 Million in connection with their new pilot labor contract).

United Net Income: $1.1 Billion

Delta net income: $1.11 Billion

Not sure if push ever came to shove Charlotte would get any cuts but not sure who would. Chicago? That’d be a boon to United. JFK? Great for Delta & JetBlue. CLT, DFW, DCA seem super insulated & safe, Philly & MIA seem pretty safe too. 
 

https://onemileatatime.com/news/american-airlines-reports-loss/

American is lagging Delta and United, but the biggest revenue and margin impact in Q3 was the lack of international aircraft right now compared to Delta and United to offer a robust European summer schedule (they each posted $1 billion+ more in revenue than AA on their European routes at strong margin). Delta and United both saw weakness in domestic as well with declining yield, but American is the most exposed to domestic travel as they are the largest domestic carrier of the Big 3 and their international network is focused on Latin America / South America rather than Europe. American tends to benefit in the North American winter months, where their network shows relative strength to DL and UA given demand rises for travelers to head to the Caribbean and South America where they are the market leader.

European travel this summer was really strong, but AA retired aircraft like the A330 and B767 too early during COVID and haven't been able to replace it due to delays in deliveries by Boeing. They also picked a 787-800 configuration that doesn't have enough premium seats and all the growth this summer was affluent people that wanted to fly to Europe and pay to be in premium seating. Domestic and middle class flying is slowing down due to rising cost of living from inflation so people are putting off their vacation to Daytona Beach, but the affluent traveled to Europe like crazy this summer. AA doesn't have the right fleet for upgrades / up-charges and they just don't have the amount of planes Delta and United have to compete in summer to Europe. AA has missed the mark on a premium strategy as they try to appeal to everybody versus largely the affluent up front (see Delta's recent loyalty program changes further focusing on the affluent as the driver of growth). 

AA doesn't break out their domestic network, but I suspect LAX and Phoenix out west are major drags on the network but needed to truly serve the whole country. Neither are as good a western hub as Delta has in Seattle and Salt Lake City or United has in San Francisco and Denver. Phoenix doesn't have enough business travel / major corporate players and the hub is not in an optimal location. LAX is a bloodbath of competition and everybody struggles to make money there - AA has been open that LAX is not profitable. They regularly say DFW, CLT, DCA, and MIA are the golden four hubs. While AA has not said ORD is unprofitable, they have pulled back flying their significantly. The new terminal (that they didn't want) is going to increase costs for every flight out of ORD so they will either need to make it up with increased margin or volume... all while fighting United and Southwest in the market on price. 

Edited October 23, 2023 by CLT2014

[RANYC]

1 hour ago, CLT2014 said:

American is lagging Delta and United, but the biggest revenue and margin impact in Q3 was the lack of international aircraft right now compared to Delta and United to offer a robust European summer schedule (they each posted $1 billion+ more in revenue than AA on their European routes at strong margin). Delta and United both saw weakness in domestic as well with declining yield, but American is the most exposed to domestic travel as they are the largest domestic carrier of the Big 3 and their international network is focused on Latin America / South America rather than Europe. American tends to benefit in the North American winter months, where their network shows relative strength to DL and UA given demand rises for travelers to head to the Caribbean and South America where they are the market leader.

European travel this summer was really strong, but AA retired aircraft like the A330 and B767 too early during COVID and haven't been able to replace it due to delays in deliveries by Boeing. They also picked a 787-800 configuration that doesn't have enough premium seats and all the growth this summer was affluent people that wanted to fly to Europe and pay to be in premium seating. Domestic and middle class flying is slowing down due to rising cost of living from inflation so people are putting off their vacation to Daytona Beach, but the affluent traveled to Europe like crazy this summer. AA doesn't have the right fleet for upgrades / up-charges and they just don't have the amount of planes Delta and United have to compete in summer to Europe. AA has missed the mark on a premium strategy as they try to appeal to everybody versus largely the affluent up front (see Delta's recent loyalty program changes further focusing on the affluent as the driver of growth). 

AA doesn't break out their domestic network, but I suspect LAX and Phoenix out west are major drags on the network but needed to truly serve the whole country. Neither are as good a western hub as Delta has in Seattle and Salt Lake City or United has in San Francisco and Denver. Phoenix doesn't have enough business travel / major corporate players and the hub is not in an optimal location. LAX is a bloodbath of competition and everybody struggles to make money there - AA has been open that LAX is not profitable. They regularly say DFW, CLT, DCA, and MIA are the golden four hubs. While AA has not said ORD is unprofitable, they have pulled back flying their significantly. The new terminal (that they didn't want) is going to increase costs for every flight out of ORD so they will either need to make it up with increased margin or volume... all while fighting United and Southwest in the market on price. 

My God I love soundly analytical posts.

[CarolinaDaydreamin]

4 hours ago, kermit said:

The state (and our federal reps) has dropped the ball once again, the Whitehouse announced the 31 new tech hubs that will receive fundings from the CHIPS act. NC did not make the list. [its still pretty early in the morning, did I miss it in the list?]

https://www.whitehouse.gov/briefing-room/statements-releases/2023/10/23/fact-sheet-biden-harris-administration-announces-31-regional-tech-hubs-to-spur-american-innovation-strengthen-manufacturing-and-create-good-paying-jobs-in-every-region-of-the-country/

It's interesting to me these "hubs" tend to be in smaller metros with very specific focuses (Greenville and Augusta for example), not large metro areas with broad funding. I would think this comparatively hurts us less by not having it, if peer cities also aren't hosting these hubs. To be fair Richmond and Dallas had hubs, one from the state of VA the other through SMU (who had large amounts of matching private funds). 

The state of NC def dropped the ball, but they would have nominated RDUCH. 

[KJHburg]

7 hours ago, CarolinaDaydreamin said:

It's interesting to me these "hubs" tend to be in smaller metros with very specific focuses (Greenville and Augusta for example), not large metro areas with broad funding. I would think this comparatively hurts us less by not having it, if peer cities also aren't hosting these hubs. To be fair Richmond and Dallas had hubs, one from the state of VA the other through SMU (who had large amounts of matching private funds). 

The state of NC def dropped the ball, but they would have nominated RDUCH. 

there was a big push in the Raleigh Durham area and maybe they did not get these hubs as they are already one and recognized as such.  I found this list of places to be anywhere but NC is politics pure play.  NC did get one of the Chip Hubs which is  centered around Raleigh Durham and NC A&T in Greensboro.  

[KJHburg]

well this is bad news but had been rumored and known.  One Wells Fargo tower at 301 South College is heading back to the lender. 

From the Biz Journal:

""One Wells Fargo went into receivership on Oct. 15, according to filings related to the debt tied to commercial mortgage-backed securities. This means a third party has taken over control of the property as the lender continues to pursue foreclosure actions.

Tampa, Florida-based Vision Properties' loan on the 42-story tower at 301 S. College St. matured in May and became delinquent in July. Currently, about $157 million is owed on the building. Vision expressed interest in sending the building back to the borrower, according to the October notes of the special servicer monitoring the debt in CMBS filings. The servicer began pursing foreclosure action on the 35-year-old property in August, according to CMBS loan data.   The 994,033-square-foot building is currently about 48% vacant. That will rise to about 66% when Wells Fargo moves its employees from the building.""

this is really a shame as this is a beautiful building and just had a renovation of its interior.  I hope they can work something out or sell it to someone who can manage it properly.  All these office buildings going back to lenders is going to cause big problems for the banks in the future if something does not change.  

One Wells Fargo handed over to receiver following loan default - Charlotte Business Journal (bizjournals.com)

[tozmervo]

For those like myself that don't know the buildings by address.
 

[videtur quam contuor]

I attended a special event in the round top area top floor of that building once, years ago. Part of the celebration/entertainment was a magician who had a mark choose a card from a deck and "magically" the card appeared on the outside of the jukebox glass facing inward so we could see it was his/her card. 

 

(He was not Lt Commander La Forge)

[rancenc]

This could be a mixed bag with companies not wanting to expand or relocate if there is a tight labor OR this could be an attraction for new residents moving here for job opportunities.

https://wraltechwire.com/2023/10/24/cant-find-workers-nc-ranks-10th-as-hardest-place-to-fill-jobs-report-says/

[KJHburg]

another uptown office building handed back to its lenders.  

""Another uptown Charlotte office building is in court after its owner defaulted on a $37.3 million commercial loan, according to court filings.

Wells Fargo Trust Co. filed a civil suit in North Carolina Business Court on Nov. 3, asking that a receiver be assigned to Wake Forest University Charlotte Center at 200 N. College St. The case was assigned today to Adam M. Conrad, special Superior Court judge for complex business cases, according to court documents.

If the receivership is granted, a third party will take control of the property as Wells Fargo (NYSE: WFC) decides next steps. The filing requested Childress Klein senior property manager Amy Clement be appointed to oversee the property as receiver.  The filing states the default on the loan occurred on Oct. 20, with a total balance remaining of $34.9 million. 200 North College, a five-story, 458,169-square-foot building that houses a branch of Wake Forest University, is more than 90% vacant following Bank of America Corp.’s move from the space and into Legacy Union’s Bank of America Tower in 2019.

Tampa, Florida-based Vision Properties' loan on the 42-story tower at 301 S. College St. matured in May and became delinquent in July. Currently, about $157 million is owed on the building. Vision expressed interest in sending the building back to the borrower, according to the October notes of the special servicer monitoring the debt in CMBS filings. The servicer began pursing foreclosure action on the 35-year-old property in August, according to CMBS loan data.

Analytics firm Trepp reported in September that the overall MSA's office delinquency rate was just over 30%, but that number was concentrated in just three buildings uptown — One Wells, 200 North College and Charlotte Plaza.""
Wells Fargo files lawsuit against owner of 200 North College in uptown - Charlotte Business Journal (bizjournals.com)

My thoughts if no buyer can be found maybe this one can be razed as it is only 5 or 6 stories or so and the land could be very valuable.  

 

Here is an idea before building any more schools or government office are built or land bought why not adaptive reuse some of these office buildings or at least for government offices?    Charlotte Catholic HS reused an old building down on Hwy 51 for thier high school many years ago.     We have to rethink office buildings especially older ones in this city. 

Edited November 8, 2023 by KJHburg

[KJHburg]

Good news bad news depending on what side of this transaction you are on.  Sometimes you can make big $$ on commercial property but sometimes not.  Case in point.  Buy low sell high is the best strategy but sometimes it does not happen.  

""Raleigh-based Perkins Fund has acquired a Class-A office property in Charlotte's airport submarket.

The real estate investment firm purchased Three Water Ridge at 2118 Water Ridge Parkway from AEW Capital Management. The $15 million sale closed Nov. 2, according to Mecklenburg County real estate records. AEW had acquired the property in 2016 for $35 million, records show.""

Raleigh investor Perkins Fund buys office building near CLT for $15M - Charlotte Business Journal (bizjournals.com)

this building is 100% occupied by Walmart Store Services as a regional support center.

Edited November 8, 2023 by KJHburg

[tozmervo]

Just an update on what we're seeing in the construction bid market right now.

Most trades (including structural trades) seem to be softening. Good bid numbers.
The bad news is HVAC, plumbing, and electrical are a train wreck. HVAC bid prices are unprecedented - there's a nasty combination of inflation on equipment, but moreso there just aren't enough people doing the work. Huge projects are lucky to get any interest because the contracting companies doing the work are already spread too thin.

[KJHburg]

well this does not sound good.

Carolina Panthers owner David Tepper's incompetence gets the perfect depiction (catcrave.com)

[Windsurfer]

1 hour ago, KJHburg said:

well this does not sound good.

Carolina Panthers owner David Tepper's incompetence gets the perfect depiction (catcrave.com)

Would love to buy a team for :"When Tepper bought the Panthers for $2.275 million from disgraced former owner..."

[SouthernSkyline]

1 hour ago, KJHburg said:

well this does not sound good.

Carolina Panthers owner David Tepper's incompetence gets the perfect depiction (catcrave.com)

He needs to go.

[15895]

I’d be shocked if Tepper didn’t threaten CLT/Meck/NC to relocate before he’d relinquish the team any time soon (at least a decade). I dont think Billionaires care what others think, so. I doubt he’ll be pressured. 

I’m glad a ton of land wasn’t given to Tepper. Last thing uptown needs is another entity controlling large swaths of uptown. 

 

Edited November 25, 2023 by AirNostrumMAD

[KJHburg]

1 hour ago, SouthernSkyline said:

He needs to go.

which He are you talking about?  Mr Tepper, Coach? 

[KJHburg]

Since Mr Tepper has put the whole city in a funk....I will put this here.    read this first published in the News and Observer of Raleigh

David Tepper isn’t just a bad NFL owner. He’s stealing Charlotte’s sports joy | Opinion (yahoo.com)

[RANYC]

10 minutes ago, KJHburg said:

Since Mr Tepper has put the whole city in a funk....I will put this here.    read this first published in the News and Observer of Raleigh

David Tepper isn’t just a bad NFL owner. He’s stealing Charlotte’s sports joy | Opinion (yahoo.com)

The opinion piece fails to mention Charlotte FC's impact.  I don't really follow soccer, but I've been under the impression that FC's arrival has engendered the sense of togetherness and common ambition that basketball and football no longer fuel.  Also, I know I'm in the minority, but I think it sad that a city places so much of its identity and heritage on pro-sports franchises owned by non-local owners and staffed by mercenaries.  It's not just a Charlotte issue, I know.  We've got to give people reasons for civic pride outside of taxpayer-funded partnerships making the rich so much richer.  

[KJHburg]

No it doesn't steal my joy I would never let it.  The soccer team and all the concerts have been Mr Teppers greatest successes.  But his micromanagement of the NFL team is terrible and that is the key franchise in the city.  Even Krispy Kreme has not had to give away many doughnuts with a win.  

[J-Rob]

I tend to agree with the article. The combined misery of the Panthers/Hornets kind of drags the city's vibe down. Charlotte FC has had some positive impact, but I get the sense it is drowned by Panthers/Hornets. I also don't think that opinion is particularly dramatic or joyless, as much as just true.

For instance, when the team is at least reasonably competitive, that provides water cooler talk, camaraderie, etc. When you don't expect the team to be competitive or even win games, there is less to chat about and less common bond.

Sure, there are other great things going on in Charlotte. Charlotte's got a lot, after all. But it is also true that sports are important bonding force in American culture.

There is also probably some less tangible downstream impact to companies wanting to be associated with the teams, and using that as a sales and marketing tool both internally and externally.