- 125 Infield Court, Mooresville, NC 28117
- (704) 660-1955
- bill@victorylanedev.com
Menu
• 2022 displayed record high net absorption despite record low vacancy.
• Development activity reached a record high as unprecedented tenant demand across the market persist.
• Despite a slowing sales market, Class A shallow bay assets remain highly sought after.
• Charlotte’s diverse economy and industry make-up provide a hedge against global headwinds.
Leasing activity in various submarkets remain consistent despite a slowing economy. Q4 2022 absorption was propelled by the occupancy of Newell Brands in their 1.5 million-s.f. build-to-suit at Gateway85. The park has an additional 940,000 s.f. currently underway across two buildings that are expected to reach completion in Q2 2023. Kiser Harriss and AS Colour occupied a combined 469,000 s.f. of speculative product that delivered in 2022. Future occupancy will be concentrated in buildings constructed after 2022 due to limited availabilities and supply constraints.
Charlotte’s Western Counties submarket added several new developments to the supply pipeline. Westend Logistics, a 189,000-s.f. rear-load, broke ground in Q4 2022, accompanied by two more projects along I-85 in Gaston County. Class A buildings under 300,000 s.f. have performed exceptionally well in recent quarters given most tenant requirements fall within this range. The market’s outlying counties continue to experience an influx of development that is bolstered by in-migration and interstate connectivity.
Investment sale activity has pulled back in recent months due to interest rate increases and economic uncertainty, but Charlotte has remained an
active market for investors. Significant trades in Q4 2022 include AirPark West, Airport85 Business Center, and a 159,000-s.f. build to suit at The Park at Huntersville. Out-of-market capital continues to invest in Charlotte’s industrial market to capitalize on high demand and rent growth.
Charlotte’s industrial sector performed well in 2022, a byproduct of regional population growth and steady demand for access to southeastern markets. Looking forward, Charlotte is well-positioned to withstand a slowing global economy and interest rate hikes. Due to the influx of diverse industries, Charlotte will remain competitive for investors needing to place capital. The region’s employment market and robust talent supply will provide the edge many occupiers need when expanding into a new market.
(704) 660-1955
bill@victorylanedev.com
125 Infield Court, Mooresville, NC 28117
