Although very little new supply delivered in Q1 2021, over one million square feet is expected to deliver in Q2 2021, and a third of this product has been pre-leased.
- Some new ground breakings have slowed due to higher construction costs.
- Investment sales continues to increase as out of market capital seek stabilized assets within our region.
- As vacancy tightens, asking rates are projected to stay on pace and steadily rise.
- With developers seeking more economically priced land, the surrounding counties are seeing an increase in acquisitions with the promise of big box development.
Charlotte Market SummaryThe industrial sector became the darling of commercial real estate throughout 2020 and this trend has continued through Q1 2021. Companies such as Amazon, Arrival, and Scentsy leased over 2.9 million square feet within the Charlotte market. However, the effects of the COVID-19 pandemic continue to create challenges, even as restrictions in Charlotte continue to ease. The shortage of construction materials combined with an increase in demand for industrial product, have caused developers to look for land outside of the traditional Charlotte submarkets as the price per acre is more cost effective. As vacancy continues to tighten in the Charlotte metro, new projects in surrounding counties will keep breaking ground.