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2019 Q3 Office Charlotte Report

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The Queen City Continues to Emerge as a Growing Technology Market

Key Takeaways

  • Rising demand from the technology sector continues to push office rental rates in the CBD and Southend/Midtown submarkets to new levels.
  • With a combination of fintech job growth, bank mergers and new headquarter announcements, Charlotte is remaining as one of the hottest office markets in the U.S.
  • Charlotte continues to gain national recognition as it took the #4 spot in Urban Land Institutes “Markets to Watch” annual ranking.
  • Overall vacancy rates were slightly lower this quarter at 8.1% compared to 8.9% last quarter. However, Class A vacancy rates decreased by 1.4% from the previous quarter coming in at 8.9% compared to 10.5% in Q2 2019. 
  • Some of the most notable leases were Lowe’s taking 200,922 SF at Charlotte Plaza; Hearst Publishing moving into 77,000 SF in Toringdon 7 and Level Brands inking a deal for 50,000 SF at 8845 Red Oak Blvd. within the Airport submarket.

Q3 2019 Office Market Summary

The technology sector has been a focus for robust activity and strong growth as of Q3 2019. Notable companies, like Lowe’s, Microsoft, and LendingTree, have chosen to expand their office presence in Charlotte and are driving new-to-market players, such as Better.com, Mitsubishi UFJ Financial Group and Moody’s Corporation to do the same. A strong demand for premium assets, driven by expansions and relocations, has provided an exciting leasing scene in Charlotte’s urban core. This influx of office demand has begun to outpace supply driving rental rates higher, creating quite the competitive landscape. 


Urban Land Institutes listed Charlotte on their annual ranking of “Markets to Watch” as the Top 5 City for First Time Investors. With a thriving financial industry, millennial growth and a tech savvy workforce, confidence is running strong for the Queen City. Moving into Q4 2019, tenant demand is expected to continue to rise, as companies’ eye high quality assets with desirable amenities. Substantial demand will keep driving unprecedented growth in rental rates across the market as developers continue to build and add record levels of new office inventory. 


Q3 2019 Office

2019 Q3 Office Charlotte Report

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Related Experts

Casey Sherman

Vice President

Charlotte

As a member of the Colliers Charlotte Office Team, Casey  acts as a consultant for his clients in all areas of commercial office brokerage including: landlord and tenant representation, acquisitions, dispositions, site selection, market analysis and forecasting.


Casey uses his market knowledge and transactional experience to help drive financial and operational success for his clients; which include large institutional users and Fortune 500 companies, as well as local, regional and startup firms.

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Greg Copps

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Mr. Copps specializes in industrial lease/sale transactions and investment sales.  He has over 30 years of real estate experience with extensive experience in dispositions, development services, land sales, investment sales, build-to-suits and tenant representation. Mr. Copps continues to rank in the top five industrial producers year after year for the Charlotte Metropolitan Area.

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