Market Strength in Tenant Demand and Strong Activity
- Charlotte Office Market maintains stable and steady activity through the second quarter of 2016
- Rental rates increased approximately 1% from the first quarter 2016
- Vacancy rates continued to fall to 8.2% as the market tightens with new competitive product expected to deliver soon
- Net absorption for the quarter was at 356,729 square feet as the market saw large block users such as WECTEC and The Lash Group relocated to different submarkets
Q2 2016 Charlotte Office Market Summary
Office Market strength has continued through the second quarter of 2016 as fundamentals remain solid. Quality of life and economic strength continue to be the focus for company relocations and market faith. Lower vacancy has contributed to higher rental rates for Landlords but as they look to secure new Tenants and retain their current Tenants, higher improvement allowances have become the norm through soaring construction costs. Continued market trends for high end office space have also pushed allowances as companies seek to use their office space to attract talent. Other market trends that Tenants continue to demand are higher parking ratios, ease of access and newly remodeled, amenity rich Parks, which contribute to the strong competition and shifts throughout the Suburban submarkets.