Skip to main content Skip to footer

2022 Q3 Office Charlotte | Market Report

Download Report
Sitecore Q4 Office Image

CBD show signs of growth in face of unfavorable economic conditions

“The Charlotte office market showed significant signs of growth in the third quarter, as CBD posted its first quarter of positive absorption in over a year. However, increases in sublease space and economic uncertainty threaten to disrupt the market going forward. ” Research Analyst, Blanton Hamilton

Key Takeaways

  • The Charlotte office market’s development pipeline remains robust with 4.56 MSF of product under construction
  • CBD showed signs of life with positive absorption for the first quarter since Q2 2021
  • Sublease space continues to rise as more employers support working from home
  • Rising interest rates and overall uncertainty pose as potential headwinds to growth going forward

CBD posted its first quarter of positive absorption since Q2 2021, due to landing 3 of the top 5 largest leases during Q3. Spot Freight, Keenan-Flagler Business School, and the new ACC led the way by signing at the Bank of America Tower at Legacy Union, followed by the Bank of London at One Independence Center. Airport submarket saw the greatest amount of net absorption during the third quarter. Tenants value its convenience to I-77, while preferring the more affordable rent options it provides compared to alternatives in SouthPark and South End.

Despite that, the Charlotte office market continues to see an increasing amount of sublease space, as employees hold significant power to determine where they work. Since flexible working environments have become a key employee benefit, many employers are supporting their employees who want to work from home, which has led to a decreased need for additional office space. Centene cancelling its plans for its new East Coast HQ in the University submarket, is one such example of employers catering to their employees for flexible work solutions.  

Another potential deterrent are the economic concerns that loom on the horizon. Interest rates increased another 75 basis points in the third quarter and future rate hikes are expected going forward. The higher rates may cause Capital markets groups to delay or drop new projects, as lenders hesitate to provide financing. With that being said, certain submarkets such as South End and Freemorewest are still seeing significant activity. Even with the economic concerns, the trend of flight to quality remains a constant for large occupiers seeking space in the Charlotte market.


Sitecore Q4 Office Image

2022 Q3 Office Charlotte | Market Report

Download Report
Related Experts

Bryan Johnson

Executive Managing Director

Charlotte

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.

View expert

Blanton Hamilton

Research Analyst

Charlotte

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
Carolina.
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.

View expert

Brad Grow

Senior Director | Office

Charlotte

Brad Grow specializes in office services focusing primarily on Tenant Representation. He brings over 19 years of local and regional transaction experience. In addition to numerous institutional and regional developer clients, Brad specializes in the representation of professional services firms and law firms in the Charlotte market.
 

Brad has a broad background with assisting CPA firms such as Reznick Group, McGladrey & Pullen, BDO Seidman and Boatsman & Gilmore. As well as corporate & law firm clients such as AIG, Lockton Corp, Berkeley Companies, Dentons Law, Alston & Bird, Gallivan, White & Boyd, and others.
 

Prior to joining Colliers, Brad served as a Special Agent with the United States Secret Service working both protection and investigative assignments involving money laundering, counterfeit currency, credit card fraud and mortgage fraud.

 

View expert

Brent Royall

Senior Director | Office

Charlotte

I'm an expert in helping office users find the best solution for their office space needs - this has been the focus for over 22 years both in Charlotte and across the United States.

Whether working with a bootstrapped tech start-up looking for edgy office space or a global accounting firm wanting to modernize their image in the central business district or even a Fortune 500 wanting to optimally locate a high density, 1000-employee shared services group, I have the skill and experience to minimize risks and maximize opportunities...saving the client significant dollars in the process while protecting their long-term business interests.

 

View expert

Kim Kendall

Senior Director

Charlotte

Kim is Senior Director of the Office Agency Leasing team at Colliers in the Charlotte office. She has 19 years of experience in commercial real estate with a focus on new business development and increasing asset value to office properties she represents. Kim is experienced in all aspects of commercial real estate including acquisitions, site selection, comparative financial analysis, real estate consulting and landlord and tenant representation. 

Kim has negotiated more than $1.3 billion worth of office, industrial, medical, and retail leases in the Carolinas, including prominent clients such as Wells Fargo, Cigna, Procter & Gamble, Sonic Automotive, Siemens, Credit Karma, Kimberly-Clark, and The Lincoln National Life Insurance Company.

Prior to joining Colliers, Ms. Kendall worked for Northwood Office where she was responsible for leasing a 4.7 million SF office portfolio in Charlotte, NC. Earlier in her career she worked at The Bissell Companies leasing their 4.4 million SF portfolio in Charlotte and at JLL (formerly The Staubach Company) representing corporate users with their industrial and office space requirements in the Carolinas. 

 

View expert

Adam Farber

Vice President

Charlotte

Mr. Farber is an expert in commercial real estate in Charlotte, North Carolina centering his efforts in the office and land sector of the Carolinas concentrating on Tenant/Landlord and Buyer/Seller representation.

Along with a focus on office and land, Adam focuses on multi-market Corporate Solutions, where he manages complex geographic, logistical and market-driven demands to provide unparalleled service experience to his clients.

Adam’s years of experience brings a tailored focus to each client through an in-depth understanding of their key business objectives.

View expert

Casey Sherman

Vice President

Charlotte

As a member of the Colliers Charlotte team, Casey  acts as a consultant for his clients in all areas of commercial brokerage including: acquisitions, dispositions, site selection, market analysis and forecasting.  Casey's primary focus is  land brokerage, portfolio sales and build to rent investment sales.


Casey uses his market knowledge and transactional experience to help drive financial and operational success for his clients; which include large institutional users and Fortune 500 companies, as well as local, regional and startup firms.

View expert