Charlotte Ends 2019 with Strong Leasing Activity as Record Breaking Sales Continue
- Q4 2019 sale announcements dominated local and national headlines as the single building sale record was broken with Highwoods Realty’s purchase of Legacy Union in Charlotte’s CBD for $441 Million. This was shortly followed by Truist Bank’s announcement of plans to exercise its purchase option on 214 N. Tryon for $455.5 Million.
- A few days prior to year-end, Childress Klein in partnership with CGA Capital, made waves with the sale-leaseback agreement of Duke Energy’s new CBD tower following completion for up to a record shattering $675 Million. The tower is expected to be complete in 2022 and will be LEED Gold Certified.
- Strong leasing volume continued as well with Principal Financial taking approximately 106,000 SF in the newly renovated Proximity Park in University submarket. K&L Gates joined the tenant list at 300 S. Tryon in CBD submarket with approximately 53,000 SF and local tech group Stratifyd, doubled in size to take roughly 30,000 SF in the heavy growth FreeMoreWest area of Charlotte, that has seen very strong tenant demand to finish 2019.
- Charlotte was awarded the 32nd expansion team for Major League soccer as Panther’s owner, David Tepper made an aggressive push to finish the year. The proposed MLS Headquarters for Charlotte and the continued talk of a renovated Bank of America stadium have Charlotteans excited about the impact of future development in CBD and the East side of the City.
Q4 2019 Office Market Summary
Adaptive reuse is making its way into Charlotte in a large way. With groups such as Third & Urban from Atlanta and JMC Holdings out of New York acquiring portfolios of industrial buildings in FreeMoreWest and South End totaling approximately 200,000 SF and 60,000 SF respectively. Both groups plan on converting the existing warehouse buildings into creative office and/or retail uses as national and local demand for this product type has skyrocketed as many companies are looking for trendy, collaborative and amenity rich locations for employees.
This demand is continuing to push construction packages, rental rates and lease terms across all of Charlotte as Tenant’s are demanding nicer finishes and Landlord’s look for ways to recoup their investments. Local economic forecasters expect Charlotte to continue its time in the spotlight in 2020 as population growth and demand are expected to keep pace with current development and cost of living.