As 2023 draws to a close, you’ve probably seen a lot of end-of-year lists reflecting on all the highlights and lowlights. Right now we’re going to add one more, a look back at the biggest business news in Charlotte this year. And to do it, I’m joined now by Tony Mecia of the Charlotte Ledger Business Newsletter for our segment BizWorthy.
Marshall Terry: All right, Tony. Let's start with your pick for biggest story of the year. What will you remember most about 2023?
Tony Mecia: The disappearance of new office buildings. We've seen this year very few get built, very few have gotten started. This really kind of started toward the end of 2022. But it's happening as we're continuing to be in this space of hybrid work, remote work. Developers are just not building office buildings like they were before. And for a city that's known for banking and its uptown skyline, I think that's really a big transformation. Now, it's not just a Charlotte story, it's a national story. But a lot of times in Charlotte, you know, we like to think that we're insulated from these national trends because we're a growing city and a city on the move. And it's just not the case.
Terry: What were some — you could call them, I guess — good news or positive stories from Charlotte or for local business this year?
Mecia: Yeah, there have been a number of them. You know, you might recall in November, Carowinds’ parent company Cedar Fair announced it was merging with Six Flags, and they're going to move the headquarters of that new amusement park company here. That deal is supposed to close in the first half of 2024.
We had the sale of the Charlotte Hornets. Michael Jordan, certainly well-known for his prowess on the court, sold the team. His reign as the owner of the Charlotte Hornets probably considered much less successful than his on-court performance. But the team was bought by financiers Gabe Plotkin and Rick Schnall.
And then also the other one didn't get a whole lot of attention, but I think it's noteworthy, is the sale of Payzer, which is the homegrown tech company that was started above a garage in the Union County town of Marvin in 2012. It sold for $250 million this year to a company based in Maine. So a number of different things going on.
Terry: And there were also plenty of challenges, and even some big setbacks. You already talked a little bit about office real estate. Anything else come to mind?
Mecia: Charlotte had its hopes dashed, landing this pro tennis tournament from Cincinnati — the Western & Southern Open. The city of Charlotte and Mecklenburg County tried to offer some incentives for it, but in the end, the tournament decided to stay in Cincinnati. So, kind of a swing and a miss there on that one. It would have been in the River District in west Charlotte.
Terry: One broader story that seemed to come up a lot in our conversations again this year was Charlotte’s housing market.
Mecia: Yeah. You know, for years, Charlotte’s housing market has been going like gangbusters. That really cooled down a lot this year with interest rates, mortgage rates moving a little bit higher. The number of closings this year of residential properties is way down, and prices are actually pretty stable. They're going up like they used to. They're pretty flat. Realtors tend to be an optimistic bunch and are hoping that recent moves by the Fed's signaling cuts and interest rates are going to reignite the housing market locally. And I think they're hoping for a better 2024.
Terry: And what else stood out to you this year?
Mecia: The other story that you see, in sort of bits and pieces, around Charlotte and around the country is the adoption of artificial intelligence. The Ledger did a series this year looking at how businesses are using it, and there are all kinds of different applications. And one of the ones people might notice: Bojangles testing out artificial intelligence, a chatbot at the drive-thru that it's calling Bo-Linda. So, keep an eye on that. I think there's more to come — artificial intelligence not just at Bojangles, at other places, too.
Terry: So, what will you mostly be looking out for in 2024?
Mecia: A lot is going to be focused on the economy. Economists have been saying for a year or two now that they expect a recession to hit. It hasn't materialized. And there's hope that it won't materialize, that the economy is going to have what they're calling a soft landing. And then, of course, you know, what's the effect on the housing market and the real estate market? Those are, as we've talked about, two pretty big areas in Charlotte. And, sort of, where they are headed? What direction are they headed? Those are some of the things I think that we can be looking at in 2024.
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