The Charlotte industrial market continues to build momentum as new construction forges ahead and we expect to see absorption to rise as we move into Q1 2020.
- Ground up construction hit a fever pitch in Q4 2019 as new product continues to be delivered at a record pace in the Charlotte Region.
- The Charlotte market ended Q4 2019 with 1,030,834 SF absorbed, while year to date absorption totaled over 3.5 Million square feet. Overall vacancy rate for Q4 2019 hovered around 6.60%.
- Top industrial leases during Q4 2019 included Pactiv’s lease of 441,444 SF at RiverOaks Corporate Center in the Iredell County Submarket and Reynolds’ lease of 360,000 SF at Afton Ridge in the Cabarrus County Submarket. Other leases to note include BestCo’s build to suit lease of 233,000 SF at Mooresville Business Park East in the Iredell County Submarket, and DIRTT Environmental Solutions build to suit lease of 129,600 SF at LegacyPark East in the York County Submarket.
|Q4 2019 Charlotte Industrial Market||Warehouse||Flex|
|# of Existing Buildings||3,082||714|
|Total Inventory SF||201,627,697 SF||25,701,539 SF|
|Absorption SF||1,211,691 SF||(180,857) SF|
|New Construction||5,164,242 SF||12,000 SF|
|Under Construction||6,874,065 SF||206,100 SF|
|Asking Rents||$5.08 PSF||$11.69 PSF|