Suburban Submarkets See Strong Close to 2016
- Premiere Suburban submarkets, Highway 51 and SouthPark saw a strong finish to 206 in both leasing and sales with arguably the most notable being Wells Fargo's 287,507 SF lease for the entire Brigham Building in Ballantyne Corporate Park
- Vacancy rate at 9.4% for the market overall was slightly higher than Q3 2016 as new supply began to take effect
- New Class A product and market demand, pushing rates higher and vacancy lower through Class B and Class C buildings
- Expect rental rates to continue to rise in Charlotte's suburban submarkets as strong pre-leasing and demand continues to push activity in sales, build-to-suits and leasing
Q4 2016 Charlotte Office Market Summary
Charlotte’s Office Market saw a solid close to 2016 as market fundamentals remained healthy and fluid through the 4th Quarter. The suburban submarkets had the most activity in both sales and leasing for the quarter as Wells Fargo leased the entire 287,507 SF Brigham building, JeldWen announced a 120,000 SF build-to-suit in Ayrsley and Asana Partners bought the Design Center in South End for $42,500,000. The suburban markets should continue to see solid rent growth and activity into 2017 as supply continues to lag. Charlotte’s CBD did not see any deliveries in 2016 but will welcome two large projects in 2017 as well as numerous developments beginning construction. 615 S. College and 301 S. Tryon Street will deliver 1,200,000 SF to the CBD in 2017 and have announced 18% and 40% pre-leased respectively. These two projects coupled with First Citizens and 301 S. Brevard, represent the largest contiguous blocks in the CBD, each containing at least approximately 300,000 SF contiguous.