Agenda - 08-19-2010 - 1 - Laserfiche WebLink

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STRATEGY 5 76 It is critical to note that the pace of absorption, hence growth, can be influenced by a similar range of factors. Basically, these are the factors delineated in the following sub- section 64 Forecast Demand. 6.4 Forecast Demand Future demand for office space in Chapel Hill will be influenced by several factors including, but not limited to opportunities and constraints described herein. The consultant has taken the opportunity to merge observations and findings with preliminary recommendations that coincide with the concept of influencing market demand Opportunities for Increasing / Capturing Demand • Critical to the demand equation is the interest/ability of the State of North Carolina, the Research Triangle, and the Town of Chapel Hill in capturing demand (including demand for office space, but also residential growth, recreational and life -style opportunities) from other markets including those elsewhere in the U.S. (e.g. the Northeast and Midwest) but also potentially international markets. Success in capturing additional market share hinges heavily on the joint efforts of organizations like the Research Triangle Partnership (which serves a 16 county constituency), Orange County Economic Development, and the Town of Chapel Hill Economic Development Office. In the consultant's opinion, these and other organizations can not only influence demand at a macro level over time, but could facilitate capture of tenants for existing vacant space by matching particular building characteristics (e.g. large floor plate suburban campus environment) with needs of a potential user (e.g. relocating corporate user with a desire for added security environment). • Maintaining and/or increasing the competiveness of Chapel Hill relative to the other office centers within the Research Triangle are also critical to capturing demand. Opportunities to exploit apparent weaknesses in the regional market such as aging buildings, suburban design (lack of proximal support amenities such as restaurants, service retail, etc.) and those weaknesses evidenced in other sub - markets should be explored in the context of crafting a competitive capture strategy for Chapel Hill. Conversely, competitive advantages of these sub - markets such as lower cost, access to fiber optics and other technology infrastructure need to be recognized. The Town can benefit from the University/Medical /Research community by working to anticipate and proactively adapt to shifts in the technology sector (including bio- technology and related sub - sectors) in order to capture entrepreneurial endeavors, expansions, relocations, etc. 33