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2022 Q2 Industrial Charlotte Report

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Fundamentals Remain Strong, but Uncertainty Lies Ahead

“A fast start to the quarter fueled initial optimism that industrial growth would continue into Q3. However, after recent economic turbulence, the short-term market outlook is more uncertain than it has been in some time.” Blanton Hamilton, Research Analyst

Key Takeaways

  • Tenant demand shows little sign of slowing down as market asking rates rose to $7.50/SF NNN.
  • Charlotte’s industrial development pipeline remains robust with 12.61 MSF of product under construction.
  • Rising interest rates, high inflation, and low consumer confidence loom on the horizon as potential headwinds to continued growth.

The second quarter picked up where the first quarter left off, as developers and tenants alike continued to seek entry into the Charlotte Industrial market. More than 4.2 million square feet was absorbed in Q2 2022, emphasizing that the demand for space remains high. Despite that, recent macroeconomic indicators cloud the market’s short-term outlook. Interest rates are up 150 basis points this year, and many economists are pricing in additional rate hikes going forward. On top of that, inflation is the highest it has been in 40 years, which has caused consumer confidence to fall. While these trends are of concern, it is too early to know what impact will be felt within the Charlotte industrial market.

Absorption, vacancy, and supply continue to support the Charlotte industrial market’s strong fundamentals. Vacancy fell to 4.10% in Q2, 260 basis points lower than Q2 of the previous year. Absorption grew by almost a million SF, but at a slower rate quarter-over-quarter. Several projects had to push back delivery dates due to ongoing supply chain issues, so expect the new supply in Q3 to quickly match the 1.9 million SF from this quarter.

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2022 Q2 Industrial Charlotte Report

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Related Experts

Bryan Johnson

Executive Managing Director


A father of 4 with over 20 years in the commerical real estate industry leading a group of diverse and talented profoessionals as the market leader for the Colliers Charlotte Office.  Bryan is an accomplished real estate executive with proven experience driving top line revenue growth by creating solutions that allow customers to focus on their core business. Expert in global finance and international real estate, with a strong focus in the healthcare sector. Adds value through an ability to turn around struggling organizations, as well as to build pipelines that allow for continued growth and profitability.

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Blanton Hamilton

Research Analyst


Blanton is a Research Analyst with
Colliers | Charlotte, responsible for
refining the methodology of the
collection and evaluation of office,
retail, and industrial market information
across the Charlotte region of North
Blanton is also responsible for planning
and executing specialized research
projects for Colliers’ corporate solutions
clients as well as participating in client
presentations. As an analyst, Blanton
brings many years of market experience
which allows him to provide the highest
quality of research services to Colliers.

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