2019 Q1 Colliers Charlotte Office Market Report

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The Queen City Welcomes Yet Another Financial Powerhouse

Key Takeaways

  • Charlotte will soon be home to another banking headquarters with the announcement of the Suntrust and BB&T merger with a subsequent relocation, creating the sixth largest bank in the country. Their total office footprint seems to be a moving target, but rumors are they could absorb an excess of 500,000 square feet.


  • Cranes continue to paint the skyline as the total development pipeline hovers around 3.6 Million square feet. Most of the activity is concentrated to the CBD submarket, while there have been several projects announced that are slated for the South End submarket.


  • Absorption slightly dipped over the previous quarter, but the year started off with over 245,000 square feet of growth. The largest driver was Wells Fargo inking a deal at 300 S. Brevard Street in the CBD for 360,000 square feet.


  • Rental rates continue to rise and that is reflected in an overall asking rate of $28.33 per square foot. Overall the urban submarkets rates dipped ever so slightly, but they will likely jump back up in the second quarter of 2019.

 

Q1 2019 Charlotte Office Market Summary

Over the last six (6) months, Charlotte has seen a flurry of major announcements, creating a strong sense of confidence throughout the market. Thousands of new jobs have been pledged for the region which has bolstered preleasing activity in new developments around the urban core. Companies continue to move towards office space that are amenity rich, proximate to public transportation and can effectively showcase the company culture. These factors have driven demand and development from Uptown (CBD) to South End, where several hundred thousand square feet is planned or breaking ground this year.

Going into the second quarter, expect absorption to increase as several of these notable corporations begin to finalize leases. Rental rate growth should remain steady, although it may not be as rapid as the previous year. Investment activity is also expected to keep pace as more out of market groups continue to bet on the growth of the Queen City.


Q1 2019 Office

2019 Q1 Colliers Charlotte Office Market Report

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Dylan Kwasniewski

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Dylan is an associate with Colliers Charlotte under the leadership of Brad Grow and Brent Royall, both partners of the Office Team in Charlotte. His primary focus is office/urban infill investment sales and tenant representation, specializing in making informed real estate decisions for his clients by integrating financial data into executable longer term strategies.

Prior to joining Colliers International, Dylan was a Professional Race Car Driver in the NASCAR Xfinity Series with Chip Ganassi Racing. Originally from Las Vegas, NV, Mr. Kwasniewski has been racing since the age of four and in 2012 became the youngest driver to win the NASCAR K&N Pro Series West Championship. Over the course of his professional racing career, Dylan has raised over $5 million in sponsorship funding to effectively drive partnership revenue through his motorsports platform.

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Haleigh Mundell-Moore

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Haleigh Mundell-Moore is the Marketing Manager for Colliers International | Charlotte. As a part of her role, she  is responsible for the implementation of the overall strategic marketing direction for Colliers brand standards, oversight of the creation and development of marketing-related materials and strategic marketing initiatives.  Along with property marketing, she is in charge of elevating Colliers International  | Charlotte’s exposure via a multitude of marketing channels including www.colliers.com/charlotte, social media accounts, graphic design materials, media relations, email campaigns and business proposals. Haleigh is also responsible for overseeing all team materials that are produced and assists the operations team with the coordination and execution of special events.

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