2025 State of the Year
Business Facilities, a national site selection publication, has named North Carolina its 2025 State of the Year.
The award reflects measurable job creation, capital investment, and sustained economic performance. Companies making relocation and expansion decisions follow these rankings closely. Investors should as well.
North Carolina’s recognition means that the state continues to execute at a high level in attracting business investment.
Why North Carolina Keeps Winning
According to Business Facilities, several factors continue to distinguish North Carolina:
- Consistent, pro-business public policy
- A competitive and gradually declining corporate tax structure
- Long-term investment in workforce development through the community college system and major universities
- Infrastructure funding and shovel-ready megasites
- Strong coordination among state, regional, and local economic development organizations
Economic development is long-term work. North Carolina’s steady, multi-year strategy is producing durable results rather than short-term spikes.
2025 Accomplishments
The 2025 report highlights record-setting performance across the state, including:
- More than 33,000 announced jobs statewide
- Approximately $23 billion in new capital investment
Major projects include:
- Genentech — expanding its manufacturing presence in Holly Springs, reinforcing the Triangle’s life sciences leadership
- Toyota — launching production at its battery manufacturing facility in Liberty, a transformative investment for the EV supply chain
- Scout Motors — establishing its headquarters in Charlotte
- Vulcan Elements — selecting Benson for a rare-earth magnet manufacturing facility supporting domestic supply chains
These projects span life sciences, advanced manufacturing, electric vehicles, and energy infrastructure. Importantly, growth is not confined to one metro area. It is statewide.
This reflects sustained momentum built over years of coordinated effort.
How Economic Development Impacts Real Estate
The connection to real estate is straightforward:
- Corporate investment creates jobs
- Jobs attract new residents
- New residents form households
- Growing populations increase demand for housing and neighborhood retail
When economic development professionals do their work well, communities grow. That growth supports apartment occupancy and strengthens the daily-needs businesses that anchor neighborhood shopping centers.
Long-term economic strategy supports long-term population growth. Population growth supports real estate demand.
Implications for Housing and Retail Investments
A strong statewide economy creates a favorable backdrop:
- Apartments benefit from steady household formation
- Neighborhood shopping centers benefit from recurring consumer activity
- Growing communities support occupancy stability
Each investment opportunity, however, must stand on its own merits. Sound underwriting and conservative assumptions remain essential.
A strong economic environment does not replace discipline. It does:
- Help mitigate downside risk
- Support stable cash flow
- Cultivate long-term upside potential
North Carolina’s long-term economic development strategy aligns naturally with a long-term, cash-flow-focused approach to investing.
NC Capital Group: Local Expertise, Disciplined Underwriting
At NC Capital Group, we focus on multifamily housing and neighborhood shopping centers across North Carolina. We have deep familiarity with the state’s markets and a strong appreciation for the economic development professionals whose work fuels growth across our communities.
We invest with a long-term orientation. Each opportunity is underwritten individually and evaluated on its own fundamentals. The broader economic context strengthens the environment in which those investments operate.
North Carolina’s recognition as 2025 State of the Year reflects years of thoughtful leadership and coordinated effort. We are pleased to operate in a state where long-term economic development and long-term real estate investment are aligned.
Eddie Coleman, CCIM, is the Principal Investment Officer at NC Capital Group. With over 40 years of experience in Commercial Real Estate in North Carolina and South Carolina, his experience spans multifamily, retail, office, historic adaptation, etc. In addition to advising clients and brokering transactions, he has extensive knowledge of North Carolina through experience in corporate site acquisition, development, capitalization, HUD financing, etc. He holds the prestigious Certified Commercial Investment Member (CCIM) designation.