Absorption Continues to Keep pace with a Healthy Pipeline of New Construction
Positive absorption remains the trend line in third quarter 2017 reporting at 413,081 square feet.
Market wide development continues to stay active with over 1.6 million square feet under construction and of that 850,000 square feet being within the CBD.
Rental rates reach $25.24 per square foot for the overall Charlotte market while the CBD Class A office rental rates creep above $32.00 per square foot.
Q3 2017 Charlotte Office Market Summary
The market saw noticeable growth from local power houses and out of market players in the third quarter 2017. This is in part due to the Queen City remaining a topic of conversation when it comes to millennial migration and the overall job growth of 3.3% since 2012. Notable leases in the third quarter 2017 include: Ally Financial committed to anchoring Tryon Place in taking 400,000 square feet,
Passport Parking leased 26,000 square feet at First Citizens Plaza, and Charter Communications signed a 145,611 square foot lease at 9300 Arrowpoint Road.
Cranes will continue to paint Charlotte’s CBD skyline with Lincoln Harris’ 850,000 square foot Legacy Union project well underway and Crescent Communities planning to break ground on the 742,000 square foot Tryon Place by the first quarter of 2018. Expect rental rates to rise as demand for quality product continues to flourish in both suburban and urban submarkets.