Charlotte Market Remains Strong With Rental Rates at Historic Highs
The Charlotte Regional industrial market remains strong, with rental rates at historic highs and sale prices almost doubling from where they were in 2010. During the first quarter of 2019, net absorption for Charlotte and surrounding counties was a positive absorption of 165,689 SF. All signs point to a market that is still robust and strong.
New construction continues to keep pace with demand with the Airport submarket having twelve (12) buildings under construction at this time. These twelve (12) buildings amount to 2,868,000 SF and are set to deliver over the next three (3) quarters of 2019.
The Cabarrus County submarket has nine (9) buildings under construction totaling 1,746,000 SF and is the second most active submarket in terms of industrial product under construction. One property of note is Phase II of LegacyPark East, totaling 460,800 SF that is near completion in the York County submarket.
Top industrial leases in the first quarter include Northern Tool & Equipment’s lease of 201,788 SF in York County at Lakemont East and Conitex Sonoco’s lease of 70,627 in Gaston County. Other leases of note were HD Supply’s lease of 43,066 SF at Logistics Pointe Distribution Center and Techni Waterjet’s lease of 32,092 SF at AirPark West V.
Summary Statistics - Q1 2019 Charlotte Industrial Market
|# of Existing Buildings||3,042||704|
|Total Inventory SF||198,588,654 SF||25,598,760 SF|
|Absorption SF||155,713 SF||9,976 SF|
|New Construction||996,578 SF||12,000 SF|
|Under Construction||7,746,810 SF||114,000 SF|
|Asking Rents||$4.90 PSF||$11.41 PSF|