Even with the slowdown, the Charlotte market remains in a good position to bounce back as activity increased at the end of the quarter.
- Due to construction remaining an essential business during the stay at home order, 1.9 Million square feet was delivered during Q2 2020.
- Net absorption dropped to 41,583 SF for the overall market, in large part due to the recent deliveries in the Cabarrus, South and Airport/West submarkets.
- The implications from COVID-19 are far from over; however, as noted throughout several reports, the industrial sector within the Charlotte region remains to be bullish.
- Some notable leasing activity within the market includes Prime Beverage Company leasing 300,000 SF at 1858 Kannapolis Parkway, Seko Logistics leasing 105,000 SF at Charlotte Intermodal Logistics Center and Eli leasing 104,000 SF at Steel Creek Commerce IX.
- Only two significant transactions took place during Q2 2020. CIP Real Estate purchased a 13 building portfolio (560,453 SF) encompassing properties from Rock Hill, SC to Mooresville, NC for $75.5 Million from Albany Road Real Estate Partners and KKR purchased the 1,100,000 SF Amazon distribution facility in Kannapolis from Morgan Stanley for $84 Million.
|Q2 2020 Charlotte Industrial Market||Warehouse||Flex|
|# of Existing Buildings||3,108||717|
|Total Inventory SF||205,014,399 SF||25,808,182 SF|
|Absorption SF||75,335 SF||(33,797) SF|
|New Construction||1,906,156 SF||-|
|Under Construction||3,496,022 SF||143,100 SF|
|Asking Rents||$6.43 PSF||$12.20 PSF|
A Note Regarding COVID-19 - As we publish this report, the U.S. and the world at large are facing a tremendous challenge, the scale of which is unprecedented in recent history. The spread of the novel coronavirus (COVID-19) is significantly altering day-today life, impacting society, the economy and, by extension, commercial real estate. The extent, length and severity of this pandemic is unknown and continues to evolve at a rapid pace. The scale of the impact and its timing varies between locations. To better understand trends and emerging adjustments, please subscribe to Colliers’ COVID-19 Knowledge Leader page for resources and recent updates.