Asking Rates Climbing and Vacancy Tightening Continues

Key Takeaways

  • Rental rates push above $30 PSF for the first time in the Charlotte Market's History
  • Projects under construction total 2.8 million square feet, which is three times the 800,000 square feet of new construction delivered in 2015
  • Asking rates are up 5.6% from Q1 2015
  • Charlotte's CBD continues to dominate new development with 1,219,722 square feet between two notable projects, Spectrum's 300 S. Tryon totaling 638,459 square feet and Portman's 615 S. College Street totaling 381,263 square feet
  • Urban push continues as demand for Midtown and CBD grows and vacancy rate drops

Q1 2016 Charlotte Office Market Summary

Vacancy rates dropping and rental rates increasing is the new market trend. Rates have increased 5.6% in the last twelve months. Demand for amenity rich urban office environments has given developers confidence to break ground on speculative buildings in premier submarkets. Rental rates are at historic asking rates above $30 PSF. This heavy demand for new product and increased rates has continued to attract international investors. In addition, companies remain attracted to the Charlotte region as many weigh the cost of living with the quality of life and recognize the value and stability in the area.